Lots of people make money relaxing on the West Coast, sipping a glass of brandy and watching the sunset over the Pacific. They don’t go to work every day and live a full life. It sounds unreal, doesn’t it? However, there is a great number of people getting money exactly this way. They’re called dropshippers and they know how to run an e-commerce business successfully.
What is dropshipping?
Dropshipping business model isn’t complex: you just need to buy a product, drive up the price and sell it to someone else. In fact all retailers do the same. The advantage is that you don’t need to rent any storages, hire employees and go to work 5 days a week.
You are not tied to a country or a city and can easily choose any place to work and live at. Besides that, you can start dropshipping business even without a great deal of money – at the beginning it’s enough to have about $20 in the pocket.
The success of dropshipping business mostly depends on the first and the most important step – choosing what to sell. Actually, you have 2 options: you can dropship all the things you want OR focus on a particular set of products. In other words you can start a general store or a niche store.
What’s the difference between a niche store and a general store?
A general store is something like AliExpress or Amazon. These stores appeal to the masses and can offer a thing or two to everyone. They focus on the average consumers.
A niche store specializes in one sphere such as antistress toys or video blogging accessories and knows a lot about who their buyers are. The variety of products is quite a bit smaller.
At first glance, it’s clear that a general store is more profitable – the more products a shop offers, the more clients and income it gets. However, there are some reasons to avoid general stores and direct your attention to the niche stores.
Why I recommend starting a niche store
Appealing to one type of customers
If you’re going to build a general store and sell a wide range of products, it will be much harder to define your audience, their needs and wishes. As a result, your product lists, service, design and SEO campaigns won’t be targeted at your clients. With a niche store you can build a psychological profile of the customers and offer them what they really want.
It’s obvious the narrower a niche is the fewer competitors you will have. If you want to sell electrical appliances, clothes, furniture and jewelry, the battle for the leading positions in search results will be extremely fierce. However, if you concentrate on one type of products such as dogs-themed gifts or reusable shopping bags you will not face this problem. Your store will climb up to the first page in Google.
More customers’ loyalty
People like to buy from experts. If you need really good guitar strings, you won’t go to a big mall to purchase them. You will prefer going to a music shop that specializes in musical equipment to get the best offer and service. This rule applies to the dropshipping business too.
Repeat customers and cross sells
It is much easier to get repeat customers when you run a niche store. If you meet customers’ expectations and your products are what your clients are looking for, they will definitely come back to you. Besides that, regular clients are usually glad to have a look at the related products and services you offer them.
Well, starting a general store is a great idea, but not for dropshipping business. First, the variety of goods can turn out to be too broad to manage. Secondly, you will not know in fact what your buyers like and how they react to your actions.
As a result, your promotional campaigns will be unsuccessful and instead of getting more traffic and clients, you will lose them. A niche store, in its turn, may be a key to success for you. It allows you to focus on the main thing – on your clients – and fully satisfy their needs and wants.