There has been a rise in popularity with one product dropshipping stores being promoted by many Youtube gurus.
Is this the new trend of dropshipping with Shopify?
A one product store is made up of only one product which usually includes an upsell as a secondary product.
Today we will discuss the pros and cons of this one product store and what you should do instead.
The pros of a one product store include:
- Higher conversion rate and great for the front end of the business. More sales mean more profits for you.
- Having the ability to brand your e-commerce website without the need for private labeling the product. This saves you time and headaches of communicating back and forth with your supplier.
- Your ad account data is based on 1 product which makes scaling your business much easier. It takes a lot of time to manage paid ads for multiple products in a general store
The cons of a one product store include:
- No backend email marketing to your customers. Email lists for business are like money printing machines. Without the ability to use email marketing, you’ll be losing a lot of money in the backend of your business.
- Sales cycle of a single product will slow down your sales and affecting your profit. You won’t be able to get the ROI’s as consistent when the product starts to lose momentum in the market.
- More products will need to be added to the store to continue growth and scalability. It will cost more money to acquire new customers than to retain one. A business needs repeat customers to survive and limiting your inventory is very risky.
- If you plan on adding more products to your store, it can be difficult if you branded your store around one product for example the domain URL.
What Should You Do?
If you would like to start dropshipping but want to be more niche with your store, you can start a small niche store with one driver product with multiple secondary products as upsells.
The prose of a small niche store include:
- Potential to build a brand and private label your products for more authenticity and trust.
- More inventory and products to sell on the backend via email and Facebook.
- Average order value will increase as some customers will purchase more than one product together. This is where you can take advantage of offering bundles and discounts to increase more sales.
The cons of a small niche store include:
- You will be confined to testing products within the same niche. It is a good idea to have a general store open so that you can continue to test new products. Don’t keep all your eggs in one basket.
Should you start a one product dropshipping store?
There are some benefits of a one product dropshipping store, however the disadvantages outweigh the advantages by miles.
You will be limited on inventory and can only test products confined to the same niche. Being confined won’t give you the freedom to test new products from other niches which are currently trending and hot in the market.
Once sales start to slow down, you will eventually need to start another store which wastes more time and money to build.
It is best to start off with a general store where you have the freedom to test multiple products from different niches.
Take what you see and hear from Youtube gurus with an open mind and its best to do your own research before investing your hard earned money.