Dropship Name Brands On Big Scale
If you think that there are no really big players in the dropship industry then the below case study will make you think. It is also a sample for those who run dropship businesses on a small level and are not sure if there is a way to expand their drop ship venture.
We have an extensive section covering a large selection of profitable dropship businesses so far, but it is the first time we publish a case of drop ship store generating over $1,000,000 in sales monthly. Do you think it is possible to easily find verified dropshipping merchants to meet & handle that amount of orders?
How to grow this sort of drop ship business? What human resources it takes to build ad maintain? How much it cost to develop and run? What are the marketing costs of such business? And what promotion techniques are applied to generate that much in sales? Find all your questions answered below.
Our recent case study of a really BIG dropship business.
• URL: www.payhalf.com
• Established: 30 Jun 2006
• Uniques/ Month: 5,000
• Page views/ month: 25,000
• Monthly Revenue: $1,000,000 gross in sales
• PageRank: 7
Description:
This is a first class auction for e-commerce site. Over $175,000 was spent developing the site. We had a team of 4 of us 3 full time one part time and grossed over $2,000,000 in 2 months with a 10% markup (October and November can show merchant reports to verify this) but due to other projects could not keep up the pace as we have a call center and several other businesses to manage. We did not stock any merchandise we were a drop ship company and listed products then pushed our product feed to pricegrabber, shoppzilla.com, nextag.com, ect ect, we spent less than $25,000.00 with these comparison sites to generate the $2,000,000 plus in sales.
The site is coded in custom php, mysql. Can support over 200,000 products and currently has a database with close to 200,000 products including detailed descriptions, pricing and images.
Expect to get hit with 250+ orders per day and it took us a while to get our dropshipper to get the correct/ realtime inventory levels so that we did not get an order for something that was out of stock. But by the time we got all that corrected our other businesses were taking off and we just did not have the team to support the growth. the site has been up since then just not taking orders as again we do not have the time to fulfill all the orders that would result in turning the ordering back on. Also if you notice these reviews were very early on you wont see any recent ones as all the issues were again corrected.
We do not stock anything and do not ship anything but we still have to perform order entry into the vendors site which was a lot of data entry. Don’t get me wrong 2-300 orders per day is nice but when you get behind and cannot get all the orders in per day you start to get behind really quick and then you customers who are not happy.
Site also has a comprehensive admin panel and is already integrated for paypal and verisign.
Site also has customer admin.
Also has an affiliate backend to where affiliates can load and list and sell their products on the site. You can charge them what ever fee structure you want on this or allow free listing to promote website growth and then monetize the site by selling google ads, chitkia ect ect. We did not do this but wish we had of as we are sure we left a lot of advertising dollars on the table.
Also partially finished sections as follows:
Barter section to where users can list items and barter back and forth other items for free or for a fee your choice.
Has a classified section similar to craigslist.
Has a merchant control center where users can import items from eBay and other sites.
Has a community section as well customized in phpbb.
This is a great match to implement a few social shopping web 2.0 features and with the catchy payhalf.com name turn this into a really high profile site.
The domain name is a premium one and we get offers weekly for people wanting to purchase it for high dollar amounts.
Revenue Details:
This is a first class auction for e-commerce site. Over $175,000 was spent developing the site. We had a team of 4 of us 3 full time one part time and grossed over $2,000,000 in 2 months with a 10% markup (October and November can show merchant reports to verify this )but due to other projects could not keep up the pace as we have a call center and several other business to manage. We did not stock any merchandise we were a drop ship company and listed products then pushed our product feed to pricegrabber, shoppzilla.com, nextag.com, ect ect, we spent less than $25,000.00 with these comparisons sites to generate the $2,000,000 plus in sales.
Traffic Details:
Traffic comes from google, yahoo, people are coming to the site to purchase electronic goods, affiliates list items for sale also.