Maximize Your Amazon Profits: The Beginner's Guide to a General Dropshipping Store
Starting an Amazon business might seem overwhelming for many, especially if you're new to the e-commerce world. With a multitude of business models, strategies, and approaches available, it’s hard to know where to begin. That’s why it’s essential to approach it in the right way from the start.
As someone who’s personally built 49 Amazon stores for complete beginners, I’ve seen what works and what doesn’t. I’ve helped people who had no prior experience, no complicated software tools, and no need to run ads, and I’ve seen them go from zero to making substantial income in a short period. The strategy I’m about to share with you is straightforward and can work for anyone.
Key Takeaways:
Focus on a general dropshipping store when you’re starting out.
A general store allows you to tap into a massive pool of products and reduces competition.
The 70/30 rule ensures a steady flow of sales while allowing you to capitalize on trends.
You can start a profitable Amazon business with zero upfront inventory costs.
Table of Contents:
Introduction
Key Takeaways
Why General Stores Beat Niche Stores
The Amazon Dropshipping Business Model
Niche Store vs. General Store: Which is Best for Beginners?
The Power of a General Dropshipping Store
The 70/30 Rule: Maximizing Sales with a Balanced Approach
Conclusion: Start Smart and Scale Fast
Why General Stores Beat Niche Stores
When it comes to starting an Amazon dropshipping business, there are two primary types of stores you can choose from: niche stores and general stores. The key difference between the two lies in the products they sell.
Niche Stores focus on a single type of product category. For instance, you could sell only coffee cups, camera gear, or pet supplies.
General Stores, on the other hand, are much broader, allowing you to sell products across multiple categories such as home and kitchen, pet supplies, outdoor gear, and more.
While niche stores can be profitable, they limit the scope of products you can sell.
For beginners, starting with a general store is often the superior option. Why? Because it gives you access to a much larger pool of potential customers and products, which significantly increases your chances of making sales.
The Amazon Dropshipping Business Model
Before we dive deeper into why a general store is the best choice, let’s quickly review how the Amazon dropshipping model works. With dropshipping, you never actually hold inventory. Instead, you list products on your Amazon store, and when someone buys a product, you purchase it from a supplier who then ships it directly to the customer.
This means that you don’t need to worry about upfront inventory costs, warehousing, or the risks associated with bulk purchasing. If a product doesn’t sell, you don’t lose money because you never bought it in the first place. The dropshipping model allows you to keep the risks low while providing you with flexibility to scale your business quickly.
Niche Store vs. General Store: Which is Best for Beginners?
This is where many beginners go wrong. They assume that a niche store, which focuses on a very specific product category, is the best way to go. While niche stores can definitely work in some cases, they come with challenges that can make them more difficult to scale, especially if you're just starting out.
Let’s consider an example of a niche store that only sells pet supplies. While there are 8.5 million products within this category on Amazon, you’re limiting yourself to only these items. This means you’re putting all your eggs in one basket, and if competition in the pet supply space becomes fierce, it could severely limit your success.
On the other hand, a general store gives you access to a much broader range of products. For example, if you sell in categories like home and kitchen, tools, pet supplies, and outdoor gear, you’re now tapping into hundreds of millions of products to list and sell. The broader your selection, the more opportunities you have to make sales.
The Power of a General Dropshipping Store
A general dropshipping store offers several key advantages, especially when you're just starting. First, it dramatically increases the number of products you can sell, which in turn gives you a larger audience. The more products you have on your Amazon store, the greater the chances that someone will make a purchase.
Imagine this: With a niche store, you’re limiting yourself to just 8.5 million products in one category. But with a general store, you have access to over 230 million products spread across multiple categories. This vastly improves your odds of attracting buyers and making consistent sales.
As a beginner, it's important to mitigate risks, and a general store does exactly that. You're less likely to encounter intense competition across all your products because you’re not relying on a single category. Instead, you're spreading your risk across various categories, which creates a more stable foundation for your business.
The 70/30 Rule: Maximizing Sales with a Balanced Approach
The 70/30 rule is a powerful strategy designed to help you achieve both consistent sales and capitalize on high-demand trends. By incorporating this rule into your general dropshipping store, you set yourself up for success in the long term.
70%: Stable, High-Demand Categories
The first part of the rule focuses on the steady, reliable categories that consistently perform well. These categories, such as home and kitchen, tools, and outdoor products, tend to have stable demand throughout the year. By listing products from these major categories, you ensure that your store is generating sales consistently, without relying on any seasonal spikes.
The key here is that these categories are not subject to sudden fluctuations or trends, making them a safe bet for maintaining a steady cash flow. The 70% of your product listings should be dedicated to these high-demand, evergreen categories. This approach helps you build a foundation of reliable sales, which is critical when you’re just starting out.
30%: Leveraging Seasonal and Trend-Driven Products
The remaining 30% of your product listings should focus on products that take advantage of trends, seasonal demand, and social media influences. These products might see huge spikes in demand at certain times of the year, such as holiday season items or products tied to viral social media trends.
While these types of products may not provide consistent sales year-round, they present a huge opportunity for short bursts of high-volume sales. By listing trend-driven and seasonal items, you can harness these spikes to significantly boost your sales when the time is right.
Why It Works
The brilliance of the 70/30 rule lies in its ability to strike the perfect balance between stability and opportunity. Here's why this strategy is so effective:
Steady Revenue from High-Demand Categories (70%): By focusing the majority of your products on evergreen categories like home and kitchen, tools, and outdoor gear, you ensure a constant stream of sales. These categories have predictable, year-round demand, providing a reliable income base.
Capitalize on Trends and Seasonality (30%): By dedicating a smaller portion of your store to trend-driven and seasonal products, you’re positioning yourself to capture high-demand moments when they arise. This helps you maximize profits during peak times, such as holidays or viral trends.
Diversification of Risk: Relying solely on one category or one product type can be risky. With a general store and the 70/30 rule, you reduce that risk by having products across multiple categories. If one category faces more competition or a slump in sales, the others can still maintain steady revenue.
Maximize Sales Potential: The combination of consistent, reliable products and high-demand, trending items ensures that your store has the best of both worlds—regular sales and occasional spikes in demand. This strategy keeps your Amazon business growing even as market trends shift.
Proof of Success: This approach has been proven to work. For example, dropshipper Christian generated $155,000 in a single day by following the 70/30 rule. The balance of stable sales and trending items allows you to capitalize on opportunities while ensuring long-term success.
By following the 70/30 rule, you’re making sure your Amazon store operates in a balanced, sustainable way while still seizing the best opportunities for high returns.
Conclusion: Start Smart and Scale Fast
In conclusion, starting with a general dropshipping store is the most effective strategy for beginners who want to build a profitable Amazon business. By listing products across a variety of categories, you give yourself the best chance to succeed without getting stuck in the saturated niches.
Moreover, implementing the 70/30 rule ensures that you balance steady sales with the ability to tap into trends and seasonal demand, maximizing your store’s potential at all times.
If you're ready to take your Amazon business to the next level, make sure to connect with me on Instagram, YouTube, and Facebook for more tips, insights, and updates. And if you're serious about building a profitable Amazon store, I’d love to work with you directly through my mentorship program.
