Starting a dropshipping business is easier said than done. There are so many things to consider and prepare before you launch your online store. You’ll have to come up with a budget, determine what to sell, set up an eCommerce store, find a reliable supplier, and so on.
Most startups find the stage of deciding what products to sell very confusing. Even seasoned drop shippers can’t easily decide on whether to sell one product only or carry multiple products in their eCommerce stores. To help you decide on the matter, it would be best to learn the pros and cons of one product store vs general store.
The truth is, there’s no absolute answer as to which model works best. The decision on having a single product or multiple products to sell depends on your current situation, your skills, and your goals. The thought of having a variety of products to sell seems appealing. When you have more goods to sell, you’ll be able to offer more choices to consumers, right? But it does not always work that way!
To help you determine the kind of dropshipping store you’ll establish, let me discuss the advantages and disadvantages of a one product concept versus a multiple products concept.
One Product Store
In this concept, you will only drop ship a single product – nothing else.
- You can serve an under-served market in any niches that you choose.
- Target a particular group of consumers is easier.
- The conversion rate is higher than the general store.
- High conversion rate means it will be easier to scale.
- You’ll have a better focus and find a profitable product.
- A single product is easy to convert into a brand.
- Easy to promote with influencer collaboration.
- You can sell the store with less hassle at a good price.
- Analyze information with less difficulty because you will only get feedback on one product.
- Effortlessly sustain valuable customer service.
- A single product gets all the consumers attention.
- A single product has a higher chance of failure.
- It may need a higher budget.
- Flexibility of a single product is very limited.
- It will be longer to set up if you’ll build multiple stores to come up with the winning product.
- A high risk of losing the market when there’s no demand for it later on.
- It may not raise enough money to support and sustain business expenses in the long term.
- You can’t cross-sell to increase your revenue with one product.
- Marketing opportunity is a bit difficult to find.
- The probability of return customers is low as people might need your product for one time only.
In a general store concept, you can sell products from various niches such as computers, clothing, electronics, and toys.
- You can reach more people when you sell multiple products.
- Cross-selling of products is highly possible.
- A general store is more stable than one product store.
- It is flexible to start because you don’t need to focus on a specific niche only.
- You can test multiple niches in your store at the same time.
- It has long term potential because you can easily pivot to different products.
- Easiest and quickest to set up than other options.
- A general store is not brandable.
- Collaboration with an influencer is difficult as there are many products to promote.
- Conversion rate is low because most visitors are only checking out products without buying intent.
- Visitors with no buying intent only consume the bandwidth and the paid marketing budget of the store.
- A general store has more competition than a single product store.
Whichever concept you might choose, it is always important that you provide a good service to your customers. It would help your store reputation if you forward any feedback that you’ll receive to the supplier to improve product quality and delivery. By improving the quality of the product, the return rate will be reduced also.
Keep in mind that in dropshipping business, the consumers will always demand valuable customer service. Therefore to avoid incurring negative reviews on reviews sites and social media which could truly hurt your business if not acted accordingly, you must ensure that you satisfy your customer’s needs. Regardless you’re a one-product store or a general store, always meet up the customer’s expectation if you want to be successful as a drop shipper.Need more info about running an eCommerce business? Take some lessons from Soulja Boy!