When starting an eCommerce store, one of the numerous decisions you will have to make is deciding whether to buy a general store or go for a niche store. The choice you make will determine your future success in the eCommerce business. And, indeed, that is one of the main reasons why most eCommerce businesses fail so soon after entering the market.
What is a General eCommerce Store?
A general store is made up of a mix of products and could be anything from electronics, clothing, and gardening tools to household goods. General websites are flexible and attract relatively higher traffic. General eCommerce stores may not be highly profitable, but they are stable and more likely to convert due to the high traffic of potential buyers that land to the store.
Pros of General ECommerce stores
Easy to Run
Since the site is not limited to a single line of products, general stores are easy to start and manage. It’s even much easier to run when you find an established eCommerce store. Once you find the store you want to buy, you can list the best selling products on all categories and start marketing them on social media, email, and other marketing channels at your disposal.
Reach More People
With multiple products on offer, there’s a wider audience to target and therefore better chances of driving more traffic to your site.
Cons of General E-commerce Stores
More competition
Since you have more products on offer, you are literally competing with multiple authority dealers in each category on your website. This means that you have to implement a more intelligent and efficient marketing strategy to ensure profitability.
Untargeted Traffic
Yes, general stores get more traffic than niche sites, but most of the people who land on general websites don’t intend on buying anything and are most likely checking out product pricing for comparison.
What is a Niche Ecommerce Store?
Niche eCommerce store target specific products in a particular group of buyers. If for example, you want to buy a business in the shoe niche, you may find a store that is solely dedicated to selling shoes for people with athlete’s foot as opposed to a store that sells all types of shoes. This can even be further targeted to a local area. If, for example, you are looking at a business for sale in Los Angeles, it might be better to have a niche operation rather than a a general one, as this can more easily be coupled with local keyword research.
Pros of Niche eCommerce Stores
Easy to Make a Sale
Niche sites target an exact audience who are interested in the product and ready to buy. Since you cater to their needs and wants, it is easy for you to make a sale.
High-Profit Margins
There’s better conversion rates on nice eCommerce stores due to the relevant traffic the store receive. Also, strategies like upselling work very well, as you can easily recommend related products.
Easy to Scale
Niche webstores are easy to scale organically due to the quality of leads it receives. As you grow your audience, you can increase your range of products and ultimately build your brand.
Cons of Nice eCommerce Stores
Needs expertise
Niche websites are not beginner friendly. To run and manage a thriving business, you must be very informed about the products and buyers needs.
Unstable
Since niche website target particular products, they are vulnerable to seasonal highs and lows and have a higher tendency of failing compared to general sites.
So, between general stores and niche stores, which one should you go for? The two types of eCommerce stores have a high potential of turning into profitable ventures, and therefore you should make your decision based on your level of expertise in the market, product interests, and growth strategy.
