Niche Vs General Dropshipping Store
Should I have a general store or a niche store? This is the most common question in every dropshipping group! Which one should I choose as Im a newbie to dropshipping ?
I have seen this everyday, I think its time to express my own view on both of the options !
First of all, both of them work perfectly, if you have your own choice already, you do not need to switch based on my view.
Keep your own stance, at the bottom of the article, I will choose either one of them !
The product of Niche Vs General Store
Well, we all know a general store has the higher possibility to have a higher number of SKUs, while Niche store will have lesser SKU as focus on specific product niche.
Let’s use an example to elaborate the idea and see which one is more suitable for you?
Niche: Selling Anti-aging Korean Cosmetics Products
No doubt, we expect the Niche shop will only have visitors that looking for anti-aging products. If the visitor is not looking for anti-aging product, they might bounce-out immediately.
General: Selling All kinds of Korean Cosmetics products
What about General store? They are looking for all kinds of visits that love K-beauty products and those who visit their shops are likely to be their direct prospect!
The general store is like a department store, they have everything and sometimes you just want to walk-around, once your customer is curious and clicks into your shop, then you are likely to remarketing them by Google or Facebook Advertising
SEO (Search Engine Optimization)
Niche Store will have lesser keywords to focus
The niche store takes advantages at focusing to optimize specific keywords, for example in our case, anti-aging, anti-aging k-beauty products, buy anti-aging product, anti-aging skincare … It’s a good sign to start with, once the anti-aging keywords are optimized and you can leverage to other specific range.
General Store needs to spend more time to optimize the keywords
So what is the major keyword if you are doing general store? Alright – Korean Cosmetics or K-beauty for sure, but its really hard to compete with the existing player, if you are completely New.
In this case, we recommend you to focus on a specific region, for example, your local country – United Kingdom ? or even narrow it to London. So “Keyword + Location” would be a great tactic for a general store to narrow it down. By using free tool – Google Trend would help you to select your location.
Here we found, Laneige (the major brand in the Korean cosmetics industry) is a potential Keyword in the United Kingdom, we can start our SEO strategy with this!
Price & Profit
Oh man, here comes to the main point. We are all interested in MONEY & PROFIT (Please let me know who doesn’t).
Niche and general stores work oppositely on price and profit. Why ?
Less product but higher profit
Most of the niche store offers professional or personalized service to the customer, as focus on a specific niche makes them easier to learn or educate the staff (You need to learn only about anti-ageing product).
In this case, they are able to charge a higher price for the product, in that way, you earn more profit!
A great example can be seen from Sulwahsoo Vs Innisfree product line, as we know Sulwahsoo is basically for anti-aging, but Innisfree provides wide-ranged products line from Skincare, makeup to body, hair, perfume … !
Be professional and give your customer more personalized advice with your product knowledge, if you are doing niche store! This could make you stand out from the market!
More product with more sales volume
Sales volume is the key to the general store, you are spreading your own risk by listing and selling lots of Korean Cosmetics products in your dropshipping store.
With more products, you may have a higher chance to reach the target audience, but you will need to build volume. If not, you will definitely see the negative figure by handling or managing lots of product SKUs. (Sometimes we cried when we mange the 2700 SKUs in our platform …)
Getting a niche or general store both have their own benefit, but for a beginner, starting a general store might be much easier.
Targeting is always the headache of a marketer, we tried our best to narrow, and fine-tune the audiences to optimize our marketing campaign.
Not easy, but worth to do it! Once you are in the advanced level of dropshipping, then you are able to use the sales data to focus on the most profitable niche!
Then you can have a new Niche dropshipping store with lower risk by sufficient sales data!