Shopify Drop Shipping: General Stores vs One Product Stores vs Niche Stores
Shopify Drop Shipping has become a popular way for entrepreneurs to start their own online businesses. However, one of the biggest questions that new drop shippers face is whether to start with a general store, a one product store, or a niche store. In this article, we will explore the differences between these three types of stores and provide you with the best strategy to use when starting out.
📋 Table of Contents
- Introduction
- What is a General Store?
- What is a Niche Store?
- What is a One Product Store?
- Pros and Cons of General Stores
- Pros and Cons of Niche Stores
- Pros and Cons of One Product Stores
- The Best Strategy for Product Testing
- Transitioning from a General Store to a One Product Store
- Building a Loyal Customer Base
- Adding Complementary Products to Upsell
- Conclusion
- FAQs
Introduction
Shopify Drop Shipping is a business model where you sell products without holding any inventory. Instead, you purchase products from a supplier and have them shipped directly to your customers. This allows you to start an online business with minimal upfront costs and without the need for a physical storefront.
However, one of the biggest challenges that new drop shippers face is deciding what type of store to start with. Should you start with a general store that sells a variety of products, a niche store that focuses on a specific product category, or a one product store that only sells one specific product? In the following sections, we will explore the differences between these three types of stores and provide you with the best strategy to use when starting out.
What is a General Store?
A general store is a Shopify store that sells a variety of products across different categories. Think of it like a Walmart or a Target. These stores have a general name and don't tie you to one specific category. For example, a general store might sell clothing, electronics, home goods, and more.
The advantage of a general store is that it allows you to quickly test different products and find a winning product. When you run ads, you're driving traffic directly to the product page. Customers typically don't leave this page to shop the home page or other product collections. As long as your product page is optimized, you can quickly learn which products are scalable.
However, there are some cons to using a general store. One of the biggest cons is a lower conversion rate, especially in the US where customers care more about branding. Customers are more likely to buy from a store that specializes in a specific product category rather than a store that sells a variety of products.
What is a Niche Store?
A niche store is a Shopify store that focuses on a specific product category. For example, a niche store might sell only fishing gear or only pet supplies. These stores have a specific name that ties them to one product category.
The advantage of a niche store is that it allows you to build a loyal customer base. Customers who are interested in a specific product category are more likely to buy from a store that specializes in that category. Additionally, niche stores have a higher conversion rate because customers perceive them as experts in their product category.
However, there are some cons to using a niche store. One of the biggest cons is that it can be difficult to find a winning product. Because you're only selling products in one specific category, you have a smaller pool of products to choose from. Additionally, if the product category you choose is too narrow, you may struggle to find enough customers to make your store profitable.
What is a One Product Store?
A one product store is a Shopify store that only sells one specific product. These stores have the product name in the brand name and website URL. For example, a one product store might sell only "Acme Blue Widgets".
The advantage of a one product store is that it allows you to fully optimize your store for one specific product. You can create a product page that is tailored specifically to that product and use branding to increase your conversion rate. Additionally, you can build a loyal customer base around that one product.
However, there are some cons to using a one product store. One of the biggest cons is that it can be difficult to find a winning product. You're putting all your eggs in one basket, so to speak. Additionally, if the product you choose is too narrow, you may struggle to find enough customers to make your store profitable.
Pros and Cons of General Stores
Pros
- Allows you to quickly test different products and find a winning product
- Gives you the flexibility to sell products across different categories
- Can be a good way to start if you're new to drop shipping
Cons
- Lower conversion rate, especially in the US where customers care more about branding
- Customers are more likely to buy from a store that specializes in a specific product category
Pros and Cons of Niche Stores
Pros
- Allows you to build a loyal customer base
- Higher conversion rate because customers perceive you as an expert in your product category
- Can be a good way to differentiate yourself from competitors
Cons
- Can be difficult to find a winning product
- If the product category you choose is too narrow, you may struggle to find enough customers to make your store profitable
Pros and Cons of One Product Stores
Pros
- Allows you to fully optimize your store for one specific product
- Can create a loyal customer base around that one product
- Can be a good way to differentiate yourself from competitors
Cons
- Can be difficult to find a winning product
- If the product you choose is too narrow, you may struggle to find enough customers to make your store profitable
The Best Strategy for Product Testing
When you're in the product testing phase, we recommend that you start with a general store. This is going to be the best way to quickly find a winning product. Remember, when you run ads, you're driving traffic directly to the product page. Customers typically don't leave this page to shop the home page or other product collections. As long as your product page is optimized, you can quickly learn which products are scalable.
Once you've found a product that has been profitable for five to seven days running ads, it's time to switch the strategy to a one product store. Transitioning to a one product store at this stage allows you to leverage branding and fully optimize the store head to toe for that winning product. You'll quickly see a bump in conversion rates and will begin to build a loyal customer base which you can build subscriber lists via email and SMS marketing to retarget at a later stage.
Transitioning from a General Store to a One Product Store
When transitioning from a general store to a one product store, it's important to choose a winning product that has been profitable for at least five to seven days running ads. This will give you the confidence to invest more time and money into optimizing your store for that product.
Once you've chosen your winning product, you'll want to create a product page that is tailored specifically to that product. Use branding to increase your conversion rate and build a loyal customer base around that one product.
Building a Loyal Customer Base
Building a loyal customer base is key to the long-term success of your drop shipping business. One way to do this is by building subscriber lists via email and SMS marketing. As you add more products to your store, you can send broadcasts to your existing customers to get them to purchase again on your store. This is free marketing and can help you increase your sales and profits.
Adding Complementary Products to Upsell
Once you've dialed in your winning product and have begun running some retargeting and look-alike campaigns, you can begin to add other complementary products as upsells. For example, if your winning product was a fishing device, you can now add other complementary products like fishing lures and fishing rod and reel combos. These are going to help increase the average order value on the store as well as strengthening the brand.
Conclusion
In conclusion, when starting out with Shopify Drop Shipping, we recommend that you start with a general store to quickly find a winning product. Once you've found a profitable product, transition to a one product store to fully optimize your store for that product and build a loyal customer base. As your brand begins to mature, you can add more complementary products to upsell to new and existing customers.
FAQs
Q: What is Shopify Drop Shipping?
A: Shopify Drop Shipping is a business model where you sell products without holding any inventory. Instead, you purchase products from a supplier and have them shipped directly to your customers.
Q: What is a general store?
A: A general store is a Shopify store that sells a variety of products across different categories.
Q: What is a niche store?
A: A niche store is a Shopify store that focuses on a specific product category.
Q: What is a one product store?
A: A one product store is a Shopify store that only sells one specific product.
Q: What is the best strategy for product testing?
A: We recommend that you start with a general store to quickly find a winning product. Once you've found a profitable product, transition to a one product store to fully optimize your store for that product and build a loyal customer base.
Resources:
- https://www.shopify.com/dropshipping
- https://www.shopify.com/blog/general-store-vs-niche-store
- https://www.shopify.com/blog/one-product-store
