Dropshipping General Product Store vs Niche Product Store

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Do you know what the most common question is when people think of starting an online business?

“Is a general product store better or a niche product store?”

Yes, this is the main concern of new sellers when establishing an online store. People expanding to D2C from B2C do not worry about this as they just aim to grow their business and boost income. However, first-time dropshippers and online retailers are often confused.

Deciding between a general product store and a niche store is critical to dropshipping as it lays the foundation of your business. You can start hunting for products and choose from Chinese or Australian suppliers when you know the kind of products you want to add to your store.

So, the main question is “General product store or niche product store,” and we will answer this question today.

General Product Store Vs. Niche Product Store               

Choosing between a general product store and a niche product store depends on various factors, and the two most important ones are marketing availability and efficient distribution resource management.

The advantages and disadvantages unique to each business model present an important question to newcomers: Should you sail the broad ocean with a general product store or navigate a niche market’s narrow straits?

General Product StoreNiche Product Store
High competitionLow competition
Wide audienceNarrow audience
Difficult to rankEasier to rank
Low organic trafficHigh organic traffic
Difficult to manageEasy to manage
Easy sourcingChallenging to source products
No expertiseExpertise in niche builds credibility
Marketing can be challengingEasy to build brand awareness

Running a general product store is all about navigating the sea of high traffic. Your ability to climb search ranking in marketplaces is crucial. Imagine it as a thrilling game of visibility where staying on the top is the key to success.

But if you’re a digital marketing master capable of crafting compelling ad campaigns, steering the ship of a niche dropshipping store may be your calling. Here, the mission is to pinpoint your audience and showcase your product directly to them.

Many people opt for single-product stores as well as niche dropshipping. While you might be skeptical about the idea, it’s possible to hit that 1 million sales mark with just one product!

Understanding the customers’ needs, especially in Australia, we have compiled all the factors to help you choose between a general or niche store according to your needs.

General Product Store

An online general product store is similar to a general store or convenience store we see on the streets. It refers to a shop that sells everything without focusing on a particular category or product.

For example, you can buy everything from soaps and shampoos to door locks and milk. The items may vary in general product stores, but usually offer a vast variety of products.

Imagine a general product store as a bustling market offering something for everyone. These are your everyday items—think kitchen, homeware, or household cleaning items, designed for the masses and with massive availability.

Advantages of a General Product Store

  • You can sell to everyone on the planet when you have all kinds of products – the sky is the limit!
  • Sourcing general products is easier than niche items.
  • Running a general product store allows you to test multiple products simultaneously.
  • General product stores have extensive opportunities to cross-sell and upsell.
  • You can easily find product details, including descriptions for your store.

Disadvantages of a General Store

  • Sometimes, customers prefer niche stores over general stores as they seem more credible.
  • People have multiple options and may prefer another popular store.
  • Running a general store means competing with Amazon, AliExpress, and local Australian online marketplaces.
  • Managing an extensive inventory can be challenging.
  • Ranking for so many keywords is a challenging task to bring organic traffic to your store.
  • Macro influencers might not be interested in working with you because of a lack of a niche.
  • Creating an effective marketing strategy can be difficult due to the lack of niche products.

Niche Product Store

A niche product store refers to a category store that sells niche products. You will not find a diverse variety of products from multiple categories at such online or offline stores.

For example, when you need to buy a mobile phone, you will visit a mobile phone shop where they have mobiles of all brands and specifications. However, these stores do not have any other products. You will not find stationery, groceries, or clothes in a niche mobile phone store.

Online niche stores operate the same way. They have products in a specific category and sometimes even a sub-category. It allows them to become big players in their domain, catering to a particular audience.

Niche products are like boutique shops. Whether it’s vegan snacks, industry-specific software, or handcrafted jewelry, these items fulfill the unique cravings of a more refined audience.

Advantages of a Niche Product Store

  • Niche product stores can build credibility and authority, exhibiting their expertise in a niche.
  • Ranking for keywords in your niche would be easier than ranking for hundreds of keywords from different categories.
  • You can better target your audience by knowing exactly who to approach and getting a higher ROI.
  • Niche stores have fewer products, making them easier to manage and maintain.
  • Niche product stores enjoy higher conversion rates because of their product offerings and lack of many niche stores.
  • You can market your products easily by finding influencers working with your niche and creating brand awareness among customers.

Disadvantages of a Niche Store

  • You need to research thoroughly to find a niche with high-profit margins.
  • Niche stores have a narrowed-down audience compared to general product stores.
  • Convincing customers to leave their preferred brand and buy from you can be challenging.
  • Testing multiple niches costs money and effort before you find the one that works the best for you.

Final Words

Now that you know what a general product store and a niche product store are, along with their advantages and disadvantages, it’s time to address the big question, “Is a general product store more profitable than a niche product store?”

Both business models can be profitable depending on your interests and capabilities. Many online retailers are running general product stores because they require less effort in product finding and cater to a large customer base. At the same time, others focus on establishing their brand on Australian marketplaces or creating a niche store as they are easier to rank and market. Thus, the choice eventually depends on you.

General product stores are better for gaining revenues by offering more products, but you may or may not reach your target audience. On the other hand, targeted marketing is easier, pushing your products to interested consumers only.

As a beginner, it is better to focus on a niche product. Later, you can either expand to other products in the niche or establish yourself as an expert in a sub-niche. It will make it easier for you to manage inventory and fulfillment in the short term and build a loyal customer base for the long term.

Happy Selling!

Mr. Still Zhu
Mr. Still Zhu

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