Is it an issue if the majority of my competitors have a showroom?

Remember to try and find a minimum of 3 direct competitors that are definitely dropshipping and do not have any physical facilities to take stock including a showroom, shop or warehouse.

If you are finding that all of the competitors within a niche have the ability to take stock it may be the case that taking stock is a requirement of certain suppliers. This means that when you contact them to sign them as a supplier, you may not be able to meet their requirements as retailer of their products.

If you do not find any direct competitors without physical space, you may be setting yourself up at a disadvantage in the industry. Once you have found three direct competitors for the niche you are looking into, you can mark this as green and move on to the next step.