How Many Products Should You Sell to Start Dropshipping?
If you are new to the world of dropshipping, you may wonder how many products you need to get your online business up and running. While there is no one-size-fits-all solution, we recommend starting with a minimum of 5 to 25 products. Of course, this number can vary depending on a variety of factors, including the nature of your dropshipping store, your level of expertise, and whether you are selling a more specialised or general range of products. The key is to strike a balance between having enough products to offer a good selection and not overwhelming your customers with too many products.
The good news is, dropshipping is one of the most lucrative and low-risk ecommerce business models. The beauty of dropshipping lies in its flexibility to explore a diverse range of products without the hassle of maintaining any physical inventory. This means you can experiment with various products and identify the most suitable combination that maximises profitability without compromising quality.
Finding the perfect product range for your dropshipping store
One of the most important steps when starting a dropshipping business is finding the best products to sell to your customers. However, the number of products you should offer your customers can depend on the type of dropshipping store you plan on having. The experts at Dropshipzone have detailed how to determine the number of products you should list on your website.
How many products for a general store?
When starting a new dropshipping store that sells a general selection of products, it is recommended that you offer a variety of 25 to 50 products. This is due to the fact that a general store is directed at a wide range of customers. Having a diverse selection of products will help establish credibility and attract potential buyers. The exact number of products needed may differ depending on the specific type of store and the number of categories you wish to offer. However, keep in mind that having fewer products may discourage returning customers, while having too many may overwhelm them. Therefore, it is essential to find a balance that works for your online store and target audience.
For example, if you plan to start a clothing store, the industry standard is to offer about 15 different product categories. This is especially important for general stores, as having a wide selection of products can help satisfy your customers’ needs and bring you more sales. By offering a diverse range of products, you’ll have more products and suppliers to choose from when it comes to selecting items for your store. This makes it easier to keep your online inventory consistently stocked.
How many products for a niche store?
The number of products needed for niche dropshipping stores won’t be as extensive as that of general dropshipping stores. To cater to your target audience, we would suggest that you offer around 5 to 20 products. It is important to understand that customers will expect a carefully curated range from a niche dropshipping store. For instance, if your dropshipping store is focused on selling boutique candles, you may only have access to a limited number of suppliers offering high-quality candles to suit your brand. You may only be able to offer around 15 varieties of candles or just enough to meet your customer needs. When running a niche dropshipping store, it is essential to focus on quality rather than quantity to ensure that your customers receive the best possible experience from your store.
A specialty store that caters to a specific range of products can streamline business operations and maximise productivity. By focusing on a smaller product range, you can devote more time and resources to ensure each item meets the highest standards of quality. Targeting a particular audience also allows you to tailor marketing efforts to their unique needs and preferences. This approach helps establish your store as an exclusive brand that offers a limited range of products, enhancing value and appeal to niche store customers who are seeking something special and unique.
Selecting products for your online store is a crucial decision when starting a dropshipping business. It’s important to evaluate various factors like sales potential and market longevity. Focusing on a smaller range of products allows you to tailor your store’s offerings to match your brand style and aesthetic. This can sometimes be more effective than having an inventory filled with a multitude of unrelated products. Niche stores allow you to focus on around ten of your products out of your inventory. This approach can create a more engaging shopping experience and pull customers in through social media advertising, leading to greater sales and customer loyalty.
One-product dropshipping stores
When it comes to making purchase decisions, the psychology of choice is a crucial factor for customers. With so many options available online, it’s easy to feel overwhelmed and indecisive. That’s why dropshipping stores that offer only one product have become increasingly popular – they help simplify the decision-making process. While this approach can be effective to spotlight a particular item, it also has its limitations. For example, potential customers who are looking for a wider variety of options may be discouraged by the limited selection. On the other hand, offering a single product can create a feeling of exclusivity and uniqueness, which can be attractive to some customers. When there’s just one product on offer, customers are less likely to experience buyer’s remorse or feel like they missed out on better products when they get to the checkout.
Dropshipping only one product can be challenging. To attract customers and make sales, your product must stand out from competitors. It’s important to conduct extensive market research to determine if your product has the potential to succeed in the market. Your website should reflect your product in a cohesive way. Use branding that highlights your item to create a seamless website that will appeal to potential customers. By making your chosen product the main focal point, you can showcase its unique features and ensure that it receives the attention it deserves. Successful dropshipping companies have easy-to-navigate websites with bold copy and high-quality product images that leave a lasting impression on customers. Using a comprehensive ecommerce platform is also beneficial for a one-product store. Building a Shopify Store is one of the easiest way to do this as you get access to a variety of themes built specifically for this type of store. Overall, while a one-product dropshipping store might not be the best fit for everyone, it can be a successful business strategy if executed correctly.
Dropshipping a variety of products
Pros
Variety of product choices
There are countless opportunities to expand your product catalogue when you dropship a variety of different products. This is particularly beneficial for beginners wanting to test out which products will work best for their business and customers. The dropshipping business model gives you the chance to determine product popularity and success without the risks involved in traditional fulfilment methods.
Appeal to a wider market
Incorporating a diverse range of products in your dropshipping store can prove to be lucrative. Catering to a broader audience with a variety of needs and preferences means your store can establish itself as a go-to destination to find general products. This will attract customers from various demographics and ensure a steady flow of online traffic and sales.
Cons
Harder to narrow down a target audience
With a general dropshipping store offering a wide variety of products, one of the biggest challenges can be identifying a specific target audience for marketing campaigns. With such a variety of products available, it can be tough to figure out who your ideal customer is and how to best reach them. As a result, you may need to allocate more resources and money towards your marketing strategy in order to ensure your brand gets the necessary exposure to connect with your target audience and drive sales.
Lack of return customers
In the dropshipping industry, it is not unheard of to encounter competitors who sell products similar to you. Consequently, customers may not have a compelling reason to return to your store after their initial purchase, unlike in the case of a niche dropshipping store that is more unique. Customers are more likely to opt for the store offering the lowest prices. However, if you lower your prices too drastically you run the risk of shrinking your profit margins and upsetting your suppliers.
Dropshipping a select few products
Pros
Targeted marketing
Concentrating on a particular product selection within a specific niche can be a highly effective way to streamline your marketing campaigns and target a specific audience. By investing time and effort into researching profitable niche products, you can gain a deeper understanding of your target audience and tailor your marketing strategies to their specific needs and preferences. This will help you build a loyal customer base who is more likely to engage and purchase from your brand in the long term.
Easier to pick products
It can be overwhelming to narrow down your dropshipping business ideas and figure out which products to focus on when you’re just starting out in the world of dropshipping and ecommerce. That’s why keeping it simple and starting with a select few products from a specific niche can help alleviate some of that stress. You’ll avoid spreading yourself too thin and find the product-picking process less daunting. Focusing on a particular niche also means you can easily identify new products that are a good fit for your brand. If this approach is implemented properly, you can build a solid foundation for your dropshipping business, which will set you up for long-term success.
Cons
Limited product range
Selecting a niche is just the beginning of the journey when starting a dropshipping business. You may find that one of the most significant challenges you face is finding reliable suppliers that are capable of providing you with the products you need to meet customer demands. This can be particularly difficult if you’re looking to expand your product range beyond just a few items. In fact, you may find yourself struggling to offer more than ten products depending on how unique your chosen niche is.
Requires testing and research
When it comes to selling a specific set of products based on a niche, conducting thorough research is an essential step. This is to ensure that the selected niche is not only popular but also has a sufficient customer base to support your business needs. The research process may take some time, and if you’re eager to launch your dropshipping store as soon as possible, this may not be the best approach for you. However, the advantage of dropshipping is having the freedom to experiment selling a variety of products without risking a loss of revenue since there isn’t any need to hold physical inventory. This means that if a product isn’t selling, instead of having invested in stock and warehouse space, you can instantly remove it from your website and move on to the next. Taking this approach allows you to discover which products are likely to be profitable for your business.
The best approach for beginners
If you’re just starting out with dropshipping, the experts at Dropshipzone recommend that you begin with a relatively small number of products, ranging from around 5 to 20 products. It’s important to keep in mind that there is no ‘one-size-fits-all’ approach when it comes to dropshipping, so it’s crucial to experiment and discover what works best for your business. The number of products you initially start with depends on various factors, such as your level of expertise in ecommerce and the amount of research you’ve conducted on the popularity and profitability of your chosen product niche. If you already have a good understanding of what it takes to establish and run a successful online store, then you may already have some idea of how many products and categories are ideal for your particular store. Alternatively, if you’ve thoroughly researched your product niche, you may have a specific number of products in mind that you’d like to offer.
At Dropshipzone we recommend starting with a smaller selection of products when you’re just starting out. This way, you can test out what works best for you. Focus on one to three products that you believe will be popular and use a variety of marketing strategies to drive sales for those products. It’s important to test products in the early stages of your dropshipping store. If a product isn’t successful, don’t worry – you can easily remove it and try something else until you’ve found a diverse range of products that you’re happy with. Don’t limit yourself to seasonal products; consider stocking items that are more likely to be purchased on a year-round basis to maintain a steady stream of sales. Seasonality can be a drawback if you only focus on a niche product line to begin with. For example, if you only want to stock Christmas décor, you should think about also stocking other general products.
Deciding what products to dropship
The products you decide to sell will ultimately define your online store, and you should think about that when conducting product research. It would be unwise to depend solely on intuition when making your product choices. We advise that you assess each product and make well-informed decisions based on profitability and popularity. Doing this means that your dropshipping store will meet customer expectations while generating business revenue, even if you are selling only a few products at a time.
One of the biggest influencing factors when it comes to making a profit off your dropshipping store is choosing trending products. If the products you choose were trending ten years ago, chances are they won’t hold the same popularity now. For example, during COVID a lot of online businesses started to sell face masks due to the increase in demand. Three years out of the pandemic, the demand for face masks has significantly decreased.
Start by making a list of the most popular dropshipping products, using a platform like Google Trends to check the popularity over a five-year period. We suggest picking products that show consistent growth over the long term, rather than choosing products that have only seen increased interest in the past year or few months as this will be harder to maintain sales. Once you’ve compiled a list of trending products or niches to choose from, you should narrow down your findings until you’ve decided on a catalogue of products that work well together and make sense for your own dropshipping business.
When determining a dropshipping business plan, it's important to consider whether you want to sell low-involvement products, high-involvement products, or a combination of both. Low-involvement products are typically inexpensive and purchased on impulse with little thought. In contrast, high-involvement products are more expensive and require a more in-depth decision-making process. While customers may make quick purchases for low-involvement products, they may not necessarily return for more purchases. On the other hand, customers may take their time deciding on high-involvement products but once they do make a purchase, they are more likely to become repeat customers. We suggest striking up a balance of both kinds of dropshipping products.
Determining the products to list on your online store is crucial and requires identifying your target audience and researching your competition. While selling trending products may attract many competitors, studying them can provide valuable insights into industry trends and identify any market gaps they aren't filling. To calculate your sales profits, consider both the product and shipping prices. Prioritise products with the highest profit potential, particularly those that you’ve chosen to focus on, to cover expenses like shipping and marketing and ensure a good profit per transaction. For affordable and fast shipping, we recommend choosing local suppliers. Offering free shipping can also attract more customers. Dropshipzone exclusively works with Australian suppliers to provide high-quality products, including many free shipping options.
Choosing products is simple with the Dropshipzone catalogue
Dropshipzone offers over 100,000 SKUs for you to dropship. The B2B2C marketplace provides a wide variety of products that can cater to nearly any niche, giving you the freedom to expand your catalogue instantly and take advantage of a profitable business model. Our quality control team guarantees that all of our major Suppliers adhere to safety and quality standards, so you can be confident in the products you sell to your customers. You can sign up as a Retailer with Dropshipzone today to start selling online.
