In fashion, it can help being the big fish in a small pond. But you could be missing out too. Here are all the online niche stores pros and cons to remember.
Fashion has its own unique history. In 1571, Queen Elizabeth I began the British fashion of wearing hats by decreeing that everyone over age seven had to wear one.
While wearing a hat is no longer a law, Britons still carry on the tradition by wearing fancy hats to special occasions. In fact, today most people consider hats to be a niche market.
If you're thinking of going into business selling clothing, you have the choice between online stores general vs niche. If you're thinking of selling niche clothing, you should do some research first.
Keep reading because we've done the work for you. We're sharing with you online niche stores pros and cons so you can make the right decision for your business.
Online Niche Stores Pros and Cons
A niche online store is one where you select one specific area of fashion to sell. For example, your roots are West African so you only sell clothing made from that region of the globe.
There are several fashion store niche pros and cons. Let's start with the pros.
Easy Branding Even for Beginners
A niche store has the ability to brand itself quickly and easily. Especially when it's an online store.
Anyone looking for that specific type of clothing will be over the moon that a store like yours exists. And since there aren't that many competitors online, it's easier to convert sales, even if you're a beginner.
Can Quickly Build Trust
By branding in the right way, you can easily build a connection between you and your potential customers. At the same time, you're building trust between you and your customer.
Once you have trust and a connection, it's easy to make sales without much effort. You can even use branding to make upsells and cross-sales.
Well-Defined Product Range
It's much easier to follow and stay on top of what's trending and popular when you only have one niche to focus on. That makes it far easier to always be stocked with the most in-demand products.
Since you're already a big fan of your own niche, you'll already know what products are most valuable to your target audience. It's then easier to create unique product descriptions to boost SEO and attract new customers.
Easy to Build Customers Profiles
Again, since you're already a fan, you have far better insight as to the other like-minded people who are just as passionate as you are. You may already even know many of them.
This gives you the power to know who to reach, making it easier to create successful marketing campaigns while delivering valuable content.
Cons of Online Niche Stores
There are a few downsides to operating an online niche store.
Can Only Test One Niche at a Time
Unlike with general stores where you can test the popularity of several types of products at once, a niche store operates in a more "sink-or-swim" capacity. There's no real backup plan available if the products you select don't sell.
However, if you notice this happening, simply change your business direction and bring in new products loosely related to your original niche. With drop shipping, it shouldn't cost you a dime.
Takes Time to Develop
Before you open up your online doors, you need to perform online market researches.
This will help you find the most profitable and suitable niche for your goals. Once it's up and running you'll still have to continue running tests and trials in order to improve performance.
What a General Online Store Is
A general store is one where you pick one topic and sell items based on the general store. If you own a general online pet food store, you wouldn't just sell one brand.
Nor would you just sell pet food for one type of pet. You would sell pet food for cats, dogs, hamsters, and even iguanas.
General stores appeal to a broader audience. That opens you up to a larger market.
Pros of a General Online Store
General stores can make more money. The wider the audience cast you can net, the greater the chance you have to make more money.
And if one product isn't selling well, the chances are you have several other items available that make up the difference. It's easier to course correct without feeling as though you'll take a financial hit.
Less Research is Needed
In business, some form of research is always necessary to understand current market trends, customer preferences, and product offers.
But you don't need to learn the specific ins and outs of every product. Instead, you can just fill your online store with products you think will sell well and wait for people to fill up their carts.
General Online Store Cons
There are tons of online general stores out there. And Amazon is by far your biggest competition.
It's challenging to try to start out when you're in that large of a market, especially when you're just starting out.
Hard to Rank High for the Best Keywords
With so much competition, the best keywords for your store are either very expensive or already oversaturated. That makes it harder to use SEO (search engine optimization) so that your site ranks higher.
You'll have to use other marketing strategies such as social media and blogging to help your site rank higher and get in front of your target audience.
Harder to Determine a Winning Marketing Strategy
It's much harder to determine who your target market is when you own a general online store. That's because basically, everyone is your target market.
But everyone has their own preferences on where and how they want to be marketed to. It's also hard to know which products to promote when you sell so many of them.
Difficult to Know Where to Place Your Focus
With a general store, there's a lot to focus on. That can become problematic when you're running a business.
It may be difficult for you to determine what your priorities are when it comes to the day-to-day management of your business.
Learn How to Attract Customers
While there are several online niche stores pros and cons, it can be worth it if you put in the time, research, and are passionate about what you sell. Of course, without customers, there is no business.
We can help you attract your target market. Click here to learn how.