Go through our free training course on how to build an eCommerce store >

Module 1: Choose Your Store Model

What we'll cover in this module:

Introduction

In this free online store building course we will go into every detail of exactly what we do to build highly successful niche web stores, just like the ones selling for 5-to-7 figures in our Website Marketplace!

Let's just say we have the "blueprint" for building successful niche stores, and every bit of it is right here in our free training program! If you're serious about building your own successful web store, this is the program for you!

In the training that follows you will learn precisely how to...

  • choose what product to sell based on important factors
  • source products at true wholesale prices
  • launch your online store & optimize it for conversions
  • get visitors & maximize your store's profits

There's no time like the present, so let's get started!

Just a few quick notes to help you get the most out of this training:

1) Each step contains a 'Learn' section (indicated by the icon) that teaches you why the step is necessary, then an 'Execute' section (indicated by the icon) that indicates how to actually complete the step!

2) The 'Learn' sections will sometimes be text, sometimes be video, and sometimes they'll be a combo of both. If you feel like you already have a good understanding of the topic being discussed you can jump straight to that section's 'Execute' step, but never skip an 'Execute' step or you'll break the process!

3) You will often see links to guides throughout the training and these are standalone tutorials that supplement and support our core training. They can be vital in helping you understand a concept, but if you already have a good understanding of the topic in hand you can bypass that particular external guide.

1.1 Choose Your Store Model

LEARN

The two store models we use are:

  • model 1: High-Ticket Drop-Ship Stores
  • model 2: Low-Ticket Impulse Buy Stores

A quick summary w/ PROs (versus the other) of each model:

High-Ticket Drop-Ship Stores (model 1)

model 1 stores generally sell brand name products that are drop-shipped direct from a manufacturer or a distributor of the manufacturer's goods - sell you are selling someone else's brand of products.

We like to target $50+ profit per order, which generally requires the average product in your catalog to retail for $250+. This amount of margin-per-order allows us to use paid advertising to drive more traffic direct to our store.

PROs of this model over the other:

  • Startup costs are almost nothing because you don't have to prepay for product, it's "drop-shipped" direct to your customer after they've paid you
  • The profit-per-order is excellent ($50+), warranting any time spent to fulfill the order and allowing for more spend on paid advertising
  • It takes far less orders per month to turn a serious monthly profit with this type of store

Low-Ticket Impulse Buy Stores (model 2)

model 2 stores generally sell generic 'base' products that we can sell as our own brand (aka "private label"), and typically we bring light bulk into our own fulfillment center (or we use a print-on-demand (POD) service for manufacturing and direct-to-customer shipping).

The margins are usually solid (percentage wise) but there's not a ton of profit-per-order, so selling in volume is necessary to make serious monthly income.

So what is private labeling, exactly?

In the simplest of terms, a private label product is a "generic" product that a company makes slight tweaks to - often times just changing the product's label - to make it appear to be made by them (aka "their" brand name).

The easiest example of this is Costco's Kirkland brand name. Costco doesn't actually manufacture any of the Kirkland brand products, they simply take a 'base product' that some other manufacturer has made and they slap their label on it.

PROs of this model over the other:

  • No official business entity is required to get products at wholesale, so this saves a bunch of time & effort up front
  • Generally we "private label" generic 'base' products when we take this route, and that allows us to retail as a unique brand name (eliminating competition & price wars)
  • These stores are generally worth a higher multiple when you go to sell
EXECUTE

Decide whether you want a model 1 or a model 2 store (you may want to read through section 1.2 before making that decision).

1.2 Understanding Your Future Store's Catalog

LEARN

It's important that you understand what your opening (and eventual) catalog will look like, and how this is completely dependent on which store model you select.

model 1 stores typically feature every product available to you via the manufacturer or distributor you set up with. Typically for model 1 stores you will source products one brand at a time, and when you secure a source for a specific brand you will offer all products within that brand's product line.

It's also important to note that for a "starting catalog" you can start with offering just a single brand on your store, as long as that's a reputable brand that's recognized within that niche. Later on you will want to expand your catalog one brand at a time as you source additional brands.

model 2 stores are a different beast, and you need to think about your opening and eventual catalog for that store model in a different way. Since model 2 stores are typically focused on generic 'base' products that you "private label", you generally want to start off with a very tight catalog that you can test out with a small amount of pay-per-click ads to assure you've got at least one winner product.

With model 2 stores, any given product in your catalog can be a winner or a loser, and that's really not the case with model 1 stores. With model 2 stores you'll want to start with no more than 5-10 products that are all within the same niche grouping, and when you find a winner, you'll want to create "spin-offs" of that product, or extremely similar products, to expand your catalog.

For example, when we launched Beloved Life Jewelry we started off with ~10 necklaces that we thought might appeal to "hip moms", but the only "winner" in our initial ad tests was the Mom & Daughter Tree of Life Necklace. So we wisely overhauled the store to feature multiple necklaces with that specific design and alterations of it (Mom & 2 Kids, Mom & 3 Kids, etc.).

See the thought process here? If not, don't worry because it should become much clearer as we choose & source products, and then build out our store's catalog.

EXECUTE

Decide whether you want a model 1 or a model 2 store (if you didn't already previously).

1.3 Understanding Your Future Store's Catalog

LEARN

It's important that you understand what your opening (and eventual) catalog will look like, and how this is completely dependent on which store model you select.

model 1 stores typically feature every product available to you via the manufacturer or distributor you set up with. Typically for model 1 stores you will source products one brand at a time, and when you secure a source for a specific brand you will offer all products within that brand's product line.

It's also important to note that for a "starting catalog" you can start with offering just a single brand on your store, as long as that's a reputable brand that's recognized within that niche. Later on you will want to expand your catalog one brand at a time as you source additional brands.

model 2 stores are a different beast, and you need to think about your opening and eventual catalog for that store model in a different way. Since model 2 stores are typically focused on generic 'base' products that you "private label", you generally want to start off with a very tight catalog that you can test out with a small amount of pay-per-click ads to assure you've got at least one winner product.

With model 2 stores, any given product in your catalog can be a winner or a loser, and that's really not the case with model 1 stores. With model 2 stores you'll want to start with no more than 5-10 products that are all within the same niche grouping, and when you find a winner, you'll want to create "spin-offs" of that product, or extremely similar products, to expand your catalog.

For example, when we launched Beloved Life Jewelry we started off with ~10 necklaces that we thought might appeal to "hip moms", but the only "winner" in our initial ad tests was the Mom & Daughter Tree of Life Necklace. So we wisely overhauled the store to feature multiple necklaces with that specific design and alterations of it (Mom & 2 Kids, Mom & 3 Kids, etc.).

See the thought process here? If not, don't worry because it should become much clearer as we choose & source products, and then build out our store's catalog.

EXECUTE

Decide whether you want a model 1 or a model 2 store (if you didn't already previously).

NextModule 2: Choose Your Store's Niche

« Training Overview

Save Page as PDF

Want to partner with us?

We take on a new partner each month. Interested? Apply Now!


We sell profitable stores!

Browse our current listings, or if you have a successful online business to sell, learn more about our brokering service.