In the last few decades, dropshipping has successfully emerged as an incredibly lucrative and novice-friendly online business model. Moreover, digital platforms such as Amazon, WooCommerce, and Shopify have totally transformed the technical side of operating an e-commerce store, making it more accessible than ever.
Still, despite the ease and convenience of setting up your own website now, the marketing-related facets of running an e-commerce business baffle many entrepreneurs. All dropshipping business owners aspire to succeed in their dropshipping venture. However, it can be relatively hard to determine the kind of dropshipping store you should commence with.
When starting your own dropshipping store, you can start with either a one-product store or a general store with many products. This guide analyzes the differences between one-product vs. general store and their pros and cons, giving you a better idea of what resources and skills each of them require to help you build a winning dropshipping store in 2021.
Choosing the Best Business Model for Your Dropshipping Store
Without a doubt, starting a new business requires a tremendous amount of research, risk-taking, and careful consideration. As a result, chances of failure are also imminent.
Without adequate planning and decision-making, things are bound to go haywire, and a business is destined to collapse. This fear of failure and doom prevents most people from starting their own businesses.
On the other hand, some people are unable to move past the brainstorming stage because of it. And, one of the biggest dilemmas people get stuck on and take a considerably long period contemplating is deciding where to opt for a one-product store or a general store.
Are you amongst one of them? Then this simple and easy guide on the pros and cons of a general store vs. one product store can help you and other budding beginners in ultimately deciding which will be the best type of dropshipping store to start with.
One Product Store
A one-product dropshipping store is one that only deals in selling one product. The structure and design of a website and marketing efforts will solely focus on just one product.
By focusing on just one product, one-product online stores generally tend to have a higher success rate than general stores. We now look at the pros and cons of starting and running a one-product dropshipping store.
- It is easier to target a specific group of consumers.
- It allows you to serve the under-served market in particular niches.
- One-product online stores have a higher conversion rate compared to general stores.
- A high conversion rate typically means one-product dropshipping stores are easier and more likely to scale.
- It is easier to convert one single product into an established brand.
- It allows you to focus better on finding one profitable product.
- You can analyze the information with less difficulty because you will receive feedback from customers on just one product.
- All the consumer attention will be directed to just one single product.
- You can sell your dropshipping store without any hassle and at a fair price.
- It is easier to promote just one product by collaborating with influencers.
- It allows you to sustain valuable customer service effortlessly.
- It might require a higher budget.
- There’s a higher chance of failure with just a single product.
- There’s a potentially high risk of losing the market if there is no demand for the product after some time.
- There is limited flexibility of a single product item.
- One single product might not generate enough money to sustain and support the expenses of your business in the long run.
- You cannot cross-sell anything to increase your revenue when you only have one product.
- It is challenging to find marketing opportunities.
- The likelihood of returning customers is low because people might only see your product as a one-time purchase.
Best suited for…
- Anyone who can dedicate their time to this e-commerce store.
- Individuals who enjoy and are keen on taking risks.
- Individuals who aren’t bothered by giving in their all to one product.
- Anyone who owns excellent skills in product research and can spot potentially winning products
- Dropshippers with an intermediate skill level in web development or anyone who doesn’t mind spending money on an expert who does.
- Anyone who possesses skills in dropshipping, ad creation, market research, and e-commerce.
- Entrepreneurs who’re just starting a business with a decent-sized marketing and advertising budget, i.e., over $1000.
Like traditional brick-and-mortar general stores, a dropshipping general store also sells various products of distinctive niches. It comprises a bigger audience than a one-product store. In addition, it gives dropshippers the potential to earn more profits from one general store.
In a dropshipping general store, you can sell products from various niches like clothing, toys, computers, and electronics. We now look at the pros and cons of starting and running a general store.
- You can change the general store into one product store when you find your winner and scale it from there.
- It is highly possible to engage in cross-selling of products in a general store.
- You can easily reach a significantly higher number of people when selling multiple products.
- You can test several different niches in a general store simultaneously.
- A general store is more stable compared to a one-product store.
- It has long-term potential because it enables you to easily switch to different products.
- It is incredibly flexible and convenient to start as there isn’t a need to focus solely on a specific niche.
- There is a vast array of products.
- The set-up is easier and quicker than other options.
- Research is strictly not needed.
- There is intense competition.
- Product-related tasks can be too overwhelming.
- It is nearly impossible to obtain a high rank in search engines for the chosen keywords.
- You cannot brand a general store.
- It can be quite challenging to build a proper marketing strategy for a general store.
- It is hard to determine where or what to focus on.
- It is hard to build a big brand around a general store.
- It can be challenging to collaborate with influencers because there are various products to promote.
- It has more competition than a one-product store.
- Visitors who have no intention of buying products will only consume the store’s paid marketing budget and bandwidth.
Best suited for…
People who have minimal experience in e-commerce or dropshipping
- People who lack much experience with web development
- People who are total beginners with a low desire for risks.
- People who have a minimal marketing and advertising budget to begin with, i.e., below $1000
Launch a Winning Dropshipping Store with Launchers Academy
The bottom line truth is that even though there’s no definite answer to which of the two dropshipping store modes works best. However, the idea of having a dropshipping general store is still better than having a dropshipping one-product store because it gives you the ability to use it as a testing playground to find the best product you can sell.
At Launchers Academy, we teach the most strategic way of starting a general store that’s ready to convert.
If you are new to e-commerce, a general store is the best business model to go ahead with. The mere idea of having an extensive array of products in diverse niches to sell to your customers requires a lesser budget and sounds quite appealing.
When there are more products to sell, you’ll generally be able to offer more product choices to your audience. This way, there will most likely be something of everyone’s liking. On the contrary, if you start a dropshipping one-product store, you’ll have to do a lot of research and store-searching to find the winning product before offering it to your customers.
If you’re puzzled on how to start and which business model to take up, join the Launchers Academy right away to learn how to create your own winning dropshipping store in just 90 days.
Our team of professionals helps you know all about our Product Matrix, so you find the winning product(s) for your store and filter out the losing ones. After you find your winning product, you can gradually move to the next phase and brand your product.
The final decision of having multiple products (general store) or a single product (one-product store) to sell primarily depends on your objectives, skills, and current situation.
Initially, you must assess your budget and abilities via this guide to determine which store model you will be able to operate confidently.
By working on a dropshipping store type that best meets your skills and financial status, you can significantly minimize the risks of failure and mistakes in running your dropshipping store.