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Choosing a Dropshipping Model for your Drop shipping Business

It is no doubt dropshipping has become one of the most profitable, effortless and beginner-friendly ecommerce business models to date. Access to platforms such as Woocommerce, Shopify and Amazon have made it easier than ever for business owners to set up a website with in-app product management, order handling and invoicing software held in one place. The confidence and guidance setting up the solid foundation of your online store with these digital platforms are reassuring, but, not so much is what you’re building towards.

Sure you might have a product, plan and goal in mind and want to take action right away, but how are you going to play this out? Wich online business model aligns with your business plan and goals? How will this decision determine the future of your business…

It is common to start with a one-product store which is great, but, are you putting all your faith in one product? With this guide, we will uncover the benefits between the three main dropshipping business model options which are a general store, a niche store, and a one-product store, to see which business model suits you best.

Choosing a store type

There are many different types of dropshipping specific business models to choose from such as:

-Print on demand

-Niche

-General

-One-product

-Wholesale

Let’s weigh out the advantages between the three main dropshipping models: General, Niche and One-product to see which is more effective for you and your business.

General store

A general store model is when you sell vast products across multiple categories and niches unrelated to each other via one store. There are no Whitelabel products nor are you restrained to sell a certain fit of product or niche, making it a general store. The advantages of choosing a general store are as follows:

Trial and error

Let’s you test different products and determine which returns a higher ROI through sales and analytics for you to either:

A) Scale the product and spread its target market research and reach further.

B) Convert the product into a one-product store.

C) Confine its niche and sell within.

Marketing aspects

Provides you with multiple selling points and multiple products which could be beneficial when marketing. Although it might seem scattered, assigning different products to the right target audience will help you prioritise and categorise this area to: grow all branches of your own store and have multiple sales in different aspects, rather than being limited to one product which in terms, multiples your revenue.

Seasonal products

General stores are useful for seasonal products. Instead of restricting your ecommerce store to one product, you can add all types of products, especially ones that are in season and trending on top of general items. Selling products catered to a holiday such as Valentines Day, Christmas, Halloween, Mothers day etc, you have a higher purchase rate flow as these seasons are led by emotion and urgency. Customers feel like they must give, decorate and celebrate on these days so finding products to fill this void will help you immensely.

Vast selling range

The number of products you vend is up to you. General stores give you the advantage to sell whatever you desire, which is a good way to increase online sales, average order value and add new products. You can sell multiple products for a lower price but the more you sell, the more you’ll make. Testing prices and new product lines before you make these decisions is preferred but the advantage is always there.

Trending products

Align with the trends. Dropshippers usually sell products that are trendy, hot and in season because they are quick to sell, have a high rate of skyrocketing and return a fast gain. Because you have free will to sell any product, you can sell trendy products along with general items to even further extend your business and profit margins. It’s just another cherry on top.

Niche store

Niche products are items that relate to a specific niche or category which target those interested in the subject. The products hold somewhat unifying features portrayed by their unique needs, preferences, or identity that makes them different from the market at large.

This dropshipping model is a easy way to further extend your ecommerce platform into a long term brand. See the benefits of a niche model below:

Sell with passion

Selling within a niche market is a great way to sell with passion, interest and drive. Your choice of niche is most likely dependant on your interests and preferences so It is a good idea to choose a niche you’re passionate about. This gives you the peak advantage of already knowing about the products, topic, market trends, potential customers preferences. This valuable knowledge is the easiest way to profit off personal interest.

Multiple products

There is flexibility in products. You can sell as many products within your niche, similar to your primary product, so you are not restricted to one product. This concept is good as it lets you upsell more products that correlate with each other and brings in prolonged customers.

One-stop shop

Saves you from creating and managing multiple different stores dedicated to one product, which helps you focus on investing in an ecommerce store that provides great value to your customers. This helps when building a long-term brand as it lets you fully invest and master a market area you are passionate about while building your brand.

Organic traffic through upsell

If you are fixated on one product, you can use this as an opportunity to upsell different products within the same niche. This is the best way to expand the range of products you offer and have multiple solutions to variant issues. This creates organic traffic from your own website!

Organic traffic through interest

A niche store usually attracts traffic already of interest which reels in lots of organic traffic and a higher social platform ranking chances. This attracts the filtered traffic and interest you want for a stable community and leads to your website.

Market with passion

Your familiarity with the niche you choose gives you a great advertising advantage because you have a more clear idea about like-minded people who are also passionate about specific topics and products. The knowledge and consumers point of view you hold makes it easier to market your store and determine which social platforms are best to reach your audience.

A) Easily create attractive content creatives to reach your targeted audience on different social media platforms.

B) Determine pain selling points, and provide a product solution.

C) Being familiar with your audience, you’re likely to succeed in creating a brand image.

One product store

The most common dropshipping model is a one-product store where you sell one particular product only and surround your ecommerce store around that product. This could be a great way to get familiar with dropshipping and expand further into versatility meaning longevity and greater opportunities to build from in the long run. Read below for the benefits of dropshipping model:

Initial selling stages

It gives you a sense of what to expect as a store owner and further development opportunities. Because there is not much complexity compared to selling multiple products, you can get an understanding of the drop shipping concept and learn from any mistakes.

Trendy products

Great for selling trends and “hot” products. Drop shippers usually lean towards selling trendy products that are brought because of societies influence and emotions of urgent need. Trendy products usually equate to fast short-term gains but lack longevity, if versatility is not applied. Taking the opportunity to create a long term brand off a trendy product is difficult so this is where changing your dropshipping process is preferred.

Whitelabel products

You can go that extra mile in product development and dropship Whitelabel products to sell a brand and increase to a higher price. Whitelabel products are private label items branded or printed with a text or image typically of your brand’s name which helps develop security, social acceptance and confidence when customers buy. Having a custom product and packaging experience gives customers’ orders a sense of reassurance that what their buying is assured and motive. Whitelabel products also help you build your ecommerce platform, customer support, marketing efforts, the overall concept of your business and long-term benefits with a recognised brand. Although the disadvantages of dropshipping white label products are you need to liaise with a custom drop ship supplier, track your own inventory management and quality control etc. Read more on white label products here.

Single marketing advantage

Selling a single product means you do not need to spend much time ranking in Facebook ads, ranking in search engines, creating numerous website pages and product descriptions, there is only one product, so you can focus all your time and energy In providing overall quality towards your main focus. A bit like quality over quantity.

Investing efforts into one-product

Having one product is certain. You do not need to invest time and money in multiple products, monitor all the data, make drastic changes etc in order to determine what’s working and what isn’t, you are solely focused on the marketing aspects for one product. This lifts a heavyweight and responsibility from you as a business owner especially if you are operating on your own before you can develop in this area.

Conclusion

Consumers have a wide range of possibilities to purchase from and ecommerce businesses are fighting harder than ever to advertise and market their products to fill this gap. With major corporations, marketplaces, brands, retail business, small business, the list goes on, this competitive environment means you must have a clear idea of what your ecommerce store is looking to accomplish, and what your visitors have come to expect.

With this guide, you can help get a step closer to a successful dropshipping company and choose your foundation wisely.