Starting from scratch, learn to open a shop on shopify in 30 days, grocery store VS niche store—Day4
Starting from scratch, learn to open a shop on shopify in 30 days, grocery store VS niche store—Day4
Starting from scratch, the series of 30 days to learn to open a store on shopify is back~~
Mainly because this time is busy, so the update is slower~
Of course, the next time will be very busy!
Well, today our theme is, when doing Shopify, should the store be a grocery store or a niche store?
Okay, when answering this question, let's compare the advantages and disadvantages of the two stores first, and after measuring their advantages and disadvantages, you will have a general direction. Finally, I will also give my advice.
Advantages of niche stores
The target audience of a niche store is a group of users who are enthusiastic about a certain point. For example, if you build a shop for cat lovers, then this group of audiences are very enthusiastic about cats. (On the power of fans~~)
So, a Niche shop,
1. You can quickly open brand awareness
Niche stores can attract repeat customers, and their shopping behavior is very crazy. In a niche store, they will think that your brand knows them and that your brand is part of their group.
If you think about it, if it’s a grocery store, customers go to the grocery store and see a pair of cat socks, and they also see mobile phone chargers, mobile phone cases and other products that are not related to cats.
Then customers will not feel any connection with your brand. They buy cat socks just because they like this pair of socks, and they are unlikely to become repeat buyers.
2. Customer loyalty value will be higher
Because customers are passionate about this niche, you can continue to sell niche products to them. Moreover, it is easier to establish after-sales follow-up emails.
You can send general recommended product emails to customers, instead of setting up different emails based on different products purchased by users like a grocery store.
3. Niche stores can easily accumulate customer base
Customers are passionate about this niche, so they will continue to buy products from you. If you can provide relevant products to an audience who likes a certain niche, then your path to making money will continue.
4. Product selection is easier
Because if you choose products based on niche, the number of products will not be large. Therefore, when you choose products, there are not so many choices, it will be easier.
If you are a grocery store, it will take a long time to select products because of unlimited categories.
Disadvantages of niche stores
1. Niche stores are difficult to scale because your audience is too precise
If you open a shop, the products you sell have elephant elements. Then, your product can only attract audiences who like elephants.
And these audiences who like elephants may not be passionate about products with elephant elements and buy them. Assuming that your audience is about 1 million, and the audience that will generate purchases will not be too many.
Among the audience that generates purchases, they may purchase 2-3 times, and the lifetime value of the customer does increase, but the products you can provide are limited, so for this group of audiences, you may eventually face no products to sell. Happening.
2. Niche stores are difficult to operate across categories
For example, if you sell products with elephant elements, it is difficult for a niche store to sell products with cat elements, because your domain name may be elephantlovers.com, which is completely independent of cats.
If you sell shoelaces, but want to sell pet supplies, then you have to open a new store.
3. High cost
Because the audience of niche stores is passionate, niche stores can make money. However, if you think about it, if your shop sells elephant-element products, you may need a person to manage your shop.
If you open a dog supplies store, another person is required to take care of the store and repurchase domain names, plug-ins, etc., and the cost will increase.
4. You are hard to test
Everyone knows that it is very difficult to select products. So when you are investigating a niche, you actually spend a lot of time, but have you ever thought that you spent a lot of time, how can you ensure that the products you choose will arrive? When will it succeed? In other words, you may choose Niche at the beginning and focus on a vertical field. It took a lot of time, but when marketing later, you will find that this product is not liked by users or that the advertising cost is very high.
At this time, the limitations of Niche come, and General stores do not have this problem. If the product fails to test, then change it until Winning ads is selected and the volume is expanded on this basis.
Let's take a look at the advantages and disadvantages of grocery stores.
Advantages of the grocery store
1. Unlimited categories in grocery stores
The grocery store is not limited to categories, and you can sell anything. For example, you can sell socks with cat patterns, you can sell T-shirts with elephant patterns, and you can also sell mobile phone holders. . . . . .
2. Grocery stores are easy to scale
Your product is unrestricted, don’t worry about catering to a certain audience or niche, because your audience is everyone. Of course, the grocery store virtually reduces your brand value.
I mean that grocery stores have an impact on the conversion rate. According to my experience, the conversion rate of niche stores is generally 1%-5% higher than that of grocery stores, because audiences who are passionate about something are more inclined to Buy products from niche stores. However, the grocery store does have more traffic.
3. Low cost
Because you don't need to create new stores for products in different fields, you don't need to hire others to manage different stores. Niche stores need to create different stores to sell products of different niches.
4. Orders can be obtained in the process of building a store
You can upload many products to the grocery store and start advertising. So as you continue to upload products, advertisements bring orders for your shop.
The revenue from the order can be reinvested in advertising. Moreover, because you have a lot of products, you have a lot of room to test, for example, you can test different audiences.
But if you are doing a niche store, assuming you are doing a niche store related to elephant element products, you may find that you can't make money at all, then all your previous investment and efforts are almost wasted.
Then reopen a store to try other products.
5. It is very convenient to operate across categories
Niche products can be sold in grocery stores, but niche products cannot be sold in niche stores. You can test different audiences to see which works best.
Maybe many big sellers have not said such a thing: we will have a grocery store, and we will test which products make money through the grocery store.
If after the test is over, some products make enough money, we will transfer these products to niche stores to sell in order to increase the conversion rate.
Disadvantages of grocery stores
1. It's hard to build customer loyalty
If you sell everything, it will be difficult for customers to be loyal to your store. Users are more inclined to be attracted to niche stores.
If your target audience is an audience who likes elephants, your store address is:
elephantlovers.com,
You sell products with elephant elements, so more buyers will buy your products because they will think your brand is a part of their group.
2. Grocery stores have lower conversion rates
If your Instagram or FB page is not for a specific niche, the conversion rate of grocery stores is generally lower than that of niche stores.
What does that mean? An analogy
Assuming your store name is cool store, then your ad should not be on the cool store homepage on facebook, but on the homepage of cat store, for example, after users click on your ad on the cat store homepage, Will open your coolstore.com store website.
In other words, your store can be a grocery store, but your facebook page must be targeted at a specific niche.
3. It is difficult for grocery stores to establish after-sales follow-up emails
If a customer buys cat socks, they cannot recommend irrelevant products such as mobile phone holders in the after-sales follow-up email, because this is meaningless to the customer. So for the grocery store, it needs to be more detailed.
For example, we can set product labels in sendlane. If someone buys a cat socks, if you set a cat label, then customers will receive emails about cat products.
If a customer purchases a product related to an Apple mobile phone, the customer will receive an email about other Apple mobile phone products. But niche stores are not the same. It is very simple to establish after-sales follow-up emails.
For example, if your store sells elephant-element products, then the relevant products are naturally recommended in your email. So there is no need to set up different follow-up emails for different user groups.
So, in this regard, niche stores can save a lot of time and have high profits. You have to know that about 30%-40% of profits will come from email marketing, so email marketing is very important.
Grocery stores and niche stores have their own advantages and disadvantages, which one should be done?
My advice is to start with the grocery store, because the grocery store is very flexible. (You can take a look at my analysis of Niche's disadvantages, especially the fourth point, first General, then quickly test the product through advertising, and then find out the area of niche)
You can advertise to all audiences, and then summarize which products can make money based on the advertising performance.
Moreover, we can learn to establish various after-sales follow-up emails to see which email has the best conversion rate.
If you set up a sendlace funnel, if you want to move to a niche store, you can move those emails to it too. The operation is very simple.
Let’s take a look at 2 stores that are doing well: a niche store and a grocery store .
Niche shop:
link address:
https://twostupidcats.com
This store spans many categories, such as accessories, clothing, mobile phone cases, home improvement, electronic products, etc., but all products have cat elements, and the target audience is those users who like cats.
link address:
https://shop.thegadgetflow.com
Click on all products, and you will see that the products in this store are very mixed, including watches, mobile phone cases, coffee cups, mobile power supplies, backpacks and other common products in various categories.
Click Collections and you can see that they sell products in various categories:
This kind of shop is the first thing I suggest you try, because we can find the most suitable audience through advertising.
And this kind of shop is not only suitable for novices, but also for veterans with shop experience, because this kind of shop is easy to scale, but remember to set sendlane correctly and do the follow-up email marketing well.
the above!
This article comes from Gu Xiaobei's B2C blog
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