One Product Store vs Niche Store- Dropshipping 2021


With the incredible rise of shopify dropshipping in recent years, it’s become more important than ever to have an effective site design when it comes to your shopify store.

Consequently, one of the most common questions for new dropshippers is whether they should start with a niche store or with a one product store.

Both have their benefits and downsides, and there are aspects of both which are great for beginners. So today, we’ll go over a one product dropshipping store versus a niche dropshipping store, so that you can determine which is best for you and your goals!

the niche store


Lets first go over the concept of a niche store. This is basically an online site where all of your products are related to one another in some way, or fall under the same category. They’re in-between a general store, where you’ll have all types of products, and a one- product store, where you’ll have just one.

One of the greatest benefits of this type of store for new dropshippers is that it really allows you to explore and develop your chosen niche, as you can add and subtract products all without doing a whole new setup like you would for a one- product store.


Advantages of the niche store


  • Ease of Branding and Marketing:


    • The first major category of advantages that a niche store offers is in its ease of branding and marketing. Niche stores allow for more credibility and authority within your chosen niche.
    • Because you’ll have product pages for multiple items in the same category, you’ll develop a reputation within your community as the go- to store for whatever products you’re selling.
    • By focusing on just one niche, you can really explore and dive deeply into the specifics of that area, which will also improve credibility.
    • Additionally, when building a target audience, you’ll have the advantages of being able to target similar people who came to your website, because you know they’ll be interested in your niche for sure, as they’ve already been there once.
    • When it comes to Facebook retargeting, having a niche store can make a huge impact on the effectiveness of your efforts.
    • For example, if you retarget those who have been to your site with a different product than they first viewed, you may get more sales based purely on variety.


  • Automation and General Management:


    • The second major category of advantages to niche stores has to do with the automation and general management of your store.
    • One benefit to running a niche store as opposed to a general store or a one- product store is that they are overall easier to manage. For example, you’ll have less listings to manage, which means less updates to individual products.
    • Additionally, you’ll need to work with a much smaller number of suppliers overall, especially because you’re often able to source multiple products from one supplier if you’re running a niche store because they’ll all be related.
    • As an added bonus, you won’t worry about inventory nearly as much.


  • Ease of Brand Awareness and Outreach:


    • The third major category of advantages a niche store has is the ease of brand awareness and outreach.
    • As a niche store, you’ll also have a much easier time branding and marketing, as you can focus on branding your store rather than just your products, like you would with a one product or general store.
    • You can also work with social media influencers much more readily, because you and they will know exactly what they’re promoting.
    • Easily include upsells and cross selling at checkout, because all of your products will be related to one another by default!
    • If you so chose, you can build out a blog on your website, as a niche store will have much more authority than a general store or a one product store.
    • Having a niche store will help you to rank with keywords much more easily. However, there are some major disadvantages to running a niche store, which we’ll go over now


Disadvantages of the niche store


  • Market Research:


    • One major disadvantage to dropshipping with a niche store is that they require a substantial amount of market research, especially compared to a one- product store.
    • Not only do you have to find a winning product, you also have to determine if that product’s niche will be viable for you to enter.
    • How much interest is there in your chosen niche, how much competition is there, and how easily you could expand from your chosen starter products are all important things to consider when doing market research for your niche store.
    • You won’t be able to test products from multiple different niches, since you’ll be locked into just one area. Just keep this in mind when choosing a niche.


  • Start-up Time investment:

    • The second major disadvantage to starting a niche store as opposed to a one- product store is the general amount of work you’ll have to put in.
    • Not only is market research more difficult and time consuming, branding and customization is as well.
    • You’ll have to write many more product pages and customizations, it can be much more work to get a niche store up and running.
    • It becomes especially important to have done solid market research, so you don’t put all that work in and then realize your chosen product, or worse, your chosen niche, just isn’t viable.


  • higher competition:

    • The last main disadvantage to niche stores is that there will often be more competition. For example, potential customers may already have a trusted brand, and be unwilling or even unable to switch to yours, even if it’s better in every way.
    • Brand loyalty can actually be a big problem for niche stores starting out in dropshipping, because you won’t be able to brand your physical products, which makes branding versus established companies much more difficult.
    • You’re reliant on one small group of people in your chosen niche, and if they collectively change their minds about something, you could be out of luck.
    • You’re not serving everyone like a general store, only a very specific part of the population in your niche. This can make niche stores more unstable than you may expect.
    • With good product selection, you’ll likely be able to maintain a foothold in your chosen area.

the one- product store

Lets now talk about a one product store. Although niche stores can be good for beginners, a single- item site is where most dropshippers usually begin, because it is so conducive to just starting out.

A one product store is exactly what it sounds like- it features only one product, and you’ll put all of your branding and marketing efforts towards just that one product.




advantages of the one-product store


  • simplicity:


    • The first category of advantages that a one product store offers is in its simplicity.
    • Your audience is very defined- you know who they are and why they might want your product, as well as when they might want it.
    • Because you’re only doing research on one product, you can be as detailed and specific as possible when doing your market research and targeting.
    • Branding your product is much easier with a one- product store, and if you’re able to, you could also work out a physical branding deal with a supplier, although it’s not necessary as long as you have strong branding on your site and marketing.
    • One other benefit of this simplicity is that its very easy to work with social media influencers, because they’ll know exactly what they will be advertising for.
    • As far as ranking for keywords on SEO goes, the one product store type is about as easy as it will get.


  • traffic and conversion rates:


    • The second category of advantages to go over for a one- product store is the traffic and conversion rates.
    • In general, one product stores have the highest conversion rates, because customers being sent directly to your site from your ads will already know exactly what the site is about.
    • If they clicked on your ad, they’re definitely at least a little interested in your product.
    • This phenomena is what drives conversion rates through the roof for one- product stores.
    • If you brand well enough, there can be a feeling of scarcity as your site may be the only one they’ve yet seen that carried your specific product.
    • As far as customer service goes, a one- product store is easy because you only have to be an expert in one item, not even one niche.


  • ease of marketing:


    • The third category of major benefits to a one- product store is the relative ease of marketing efforts.
    • As mentioned above, you can more easily work with social media influencers, but the marketing advantages hardly stop there.
    • If you have variations of your product, upsells and cross sells become extremely viable with a one- product store, because variants of the same product are about as related as two items can get, which is great for upsells.
    • The more similar to the original product in both form and price, the easier the upsell becomes.
    • And when it comes to authority on a topic, you’ll be the go-to expert because it’s the only thing your site does. This helps to build and maintain credibility, especially for stores that are more long- running. However, there are also some downsides to choosing a one- product store, which we’ll go over now.


Disadvantages of the one- product store


  • lack of flexibility:


    • The first big disadvantage to one- product stores is the general lack of flexibility.
    • One downfall to one- product stores is that you have invested all your time and money into just one product, so if it fails, it can be much harder to deal with than if a single product in your niche store failed.
    • A single product has a higher chance of failure overall than a niche store specializing in a category.
    • After you’ve set up your ads and product pages and suppliers, you can’t change much, and it really comes down to the success of your market research and marketing techniques.
    • Because you’re only carrying one product, you’re much more susceptible to fluctuations in price, from either the suppliers side, or from other dropshippers undercutting you, can force you to lower your margin.
    • Flexibility becomes a big problem, because if your product’s profitability disappears overnight, you may have to shut down your store completely, as you won’t be able to easily transition to another product with your existing branding.


  • up-front costs:


    • The second disadvantage to one- product stores is the surprising amount of investment they require up- front. Although you’re only working on one product, because it will receive all the attention from your website, you’ll have to make sure every aspect is very high quality.
    • For example, your product page should be the smoothest thing on the internet, with descriptive photos and text, as well as a slick design and a proper sales funnel.
    • Your targeting must be extremely detailed and advanced, because you’re targeting such a specific group of people with just one product.
    • This can require a large time and monetary investment to get just right, especially when just starting out.








Which one is best for you?


why the one-product store?


Overall, we recommend a one- product store for those with at least some level of experience in market research, dropshipping, and ecommerce.

Additionally, you’ll need to have a decently sized marketing budget, because ads are likely the only way you’ll see traffic to your store as SEO is not very viable for one- product stores. You should also be comfortable designing your shopify website, and be able to make it fast and beautiful.


why the niche store?


However, we recommend a niche store for those who have a bit of experience with entrepreneurship, but not necessarily the web- development or e-commerce side of things.

Additionally, a niche store is more conducive to a small marketing budget, because you’ll have other ways of driving traffic to your site, like SEO.

However, you should keep in mind that both options carry some risks, and it’s up to you to decide whether you like having all your eggs in one basket with a one- product store or more spread out with a niche store.





one product store vs niche store- Dropshipping 2021

Although these certainly aren’t all the advantages and disadvantages of a niche store versus a one- product store, they are the most important ones when it comes to making an informed decision.

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