Dropshipping and the Power of a Niche
Dropshipping means getting the goods from the wholesaler or manufacturer and delivering them to the customer. In this method, you are a retailer without any facility, physical structure, warehouse or shop. In the real world, even if you want to launch a grocery store, you need to rent a shop and have enough capital to buy goods. In this method, you don't need any capital for renting a place or buying goods, because you are backed by the warehouse of another company, and sometimes its inventory includes millions of goods.
You post the wholesaler's catalog on your website, and when a product is sold, you buy it from the wholesaler and deliver it to the customer. Ready-to-use store builders such as Shopify provide such a platform. You register your request for an online shop and pay a monthly fee.
If you decide to work as a broker between the wholesaler and the customer, you can launch an online shop where all sorts of products are offered, or you can work in a specific category or niche. For example, you can only offer gardening gear and agricultural tools. The more specific your job in online sale, the more possible your success. Since you are focused on a specific section of the market, you can become a professional in that industry.
When you choose a larger market, the difficulty is multiplied, and you can never become an expert. More importantly, your competitors are the largest global businesses, and confronting them is almost impossible for newbies. Buyers prefer to buy niche products from niche shops, not large stores that sell everything. If the customer intends to buy a camera, he or she prefers to buy it from a website which exclusively sells cameras. A niche website assures the customer of a professional vendor with great knowledge of the product and better consulting and customer support.