Dropshipping is easy to start. Before you open your online shop, there are many things you need to think about and plan for. It is important to establish a budget and decide what you want to sell. You also need to set up an eCommerce shop, locate a trustworthy supplier, and so forth.
Many startups find it difficult to decide what products they want to sell. Even experienced drop shippers struggle to decide whether they should sell one product or multiple products through their eCommerce sites. It is best to understand the pros and cons of each product store vs. the general store.
There is no one right answer to the question of which model is best. Your current situation, your abilities, and your goals will determine whether you choose to have one product or several products. It is appealing to think of selling a variety of products. You’ll have more products to sell so you can offer more options to your customers. It doesn’t always work this way.
Let me explain the benefits and disadvantages of having a single product concept as opposed to a multi-product concept in order to help you decide which type of dropshipping shop you will open.
One product store
This concept allows you to drop only one product.
The pros:
- Any niche you choose, you can reach an underserved market.
- It is much easier to target a specific group of customers.
- The conversion rate is greater than that of the general store.
- It will be easier for you to scale it if your conversion rate is high.
- You will be able to focus better and find a product that is profitable.
- It is simple to turn a single product into a brand.
- It’s easy to promote through influencer collaboration.
- The store can be sold quickly and at a great price.
- You will be able to analyze information more easily as you only receive feedback on one product.
- Maintain valuable customer service by working tirelessly
- One product is all that grabs the attention of consumers.
The Cons
- One product is more likely to fail than another.
- You may need to spend more.
- The flexibility of one product is limited.
- If you have multiple stores that will carry the winning product, it will take longer to set-up.
- High risk of losing market if there isn’t demand later.
- It might not be able to raise enough money in the long-term to sustain and support business expenses.
- Cross-selling is not an option to increase revenue from one product.
- It can be difficult to find marketing opportunities.
- As people may only need your product once, the probability of returning customers is low.
General Store
You can sell products from different niches in a general store concept such as electronics, clothing, and toys.
The pros:
- Multi-product sales can help you reach more people.
- Cross-selling products is possible.
- A general store is better than a product store.
- Because you don’t have to be a specialist in a particular niche, it is flexible to begin.
- Multiple niches can be tested simultaneously in your store.
- Because you can pivot easily to other products, it has long-term potential.
- It is easier and quicker to set up than any other options.
The Cons
- A general store is not branded.
- It is hard to collaborate with an influencer because there are so many products to promote.
- Low conversion rate because most people are just checking out products and not buying intent.
- Visitors who have no intent to buy only consume bandwidth and the marketing budget.
- A general store is more competitive than a single product shop.
No matter what concept you choose, it is important to provide excellent customer service. Your store’s reputation will be enhanced if you pass any feedback you receive to the supplier in order to improve product quality or delivery. The return rate can be decreased by improving the product quality.
Dropshipping is a business where customers expect excellent customer service. To avoid negative reviews and other social media posts that could negatively impact your business, it is important to meet your customers’ needs. Drop shippers must meet the expectations of customers, regardless of whether they are a one- or two-product store.
