June 4th, 2009
I guess it is high time to update our dropship case study category with some valuable information case.
Beauty products… There is no need to use sophisticated online target audience tools to see that 70-80% are female shoppers of beauty products But it is not a simple task to understand what a woman wants… And the market of beauty products is overcrowded with brands, merchants, etc…
While examining today’s case study I was definitely impressed with the business scope – now I do not talk about $3,500 monthly net income, but about 3 professional blogs, 13 mini sites, huge selection of videos, 40 dropshippers and more… that are aimed to help with promoting the main business website Who would say it is easy to make money online today? You need to invest a lot of money and time to build a prospering online business – dropship, affiliate or real e-commerce.
Established Ecommerce site Dropship Beauty Products. $3500 Mth/Profit
Work 1-4 Hours a day with Avg $3500 Month Net Profit, Work from Anywhere, Natural Traffic
• URL: www.salonhive.com
• Uniques/Month: 7,000
• Page views/month: 21,000
• Monthly Revenue (USD): 6,500
• Google Pagerank: 3
• BIN: $17 500
Growing Beauty Drop Ship Business, 6 Months Old, Profitable, Complete Drop Ship.
Gross Sales : $22,601.27
2009 Gross Profits: $8708.88
Average Monthly Gross Profit : $1644.20
May (1st-14th) Gross Profit: $1541.49
April Gross Profit: $2872.56
March Gross Profit: $1543.61
February Gross Profit: $1316.64
January Gross Profit: $570.79
December Gross Profit: $862.79
As you can see May is already on track to do $3500 in Profits. This sites revenue continues to increase each month. The potential in this market is massive; doing $10,000 day in sales is easily doable. I do have a quality SEO team I work with on my other sites and would recommend the new owner using them to promote Salon Hive. You can get started with their basic service for $350 month and they do an amazing job.
About Salon Hive
Salon Hive is a 6 month old successful business that was started in December 2008 and began making sales immediately. The site has seen a consistent growth in traffic and sales and is very profitable. All products are drop shipped from reliable suppliers with authentic product. Many of the products are 100% markup with the minimum markup being 15%. The site is also setup to make revenue from affiliate products and Ad revenue from Google Adsense or you own ad network.
This is a great business and you can work from anywhere in the world. A lot of the products we sell are only sold by us, we did not use a cheap drop ship database, and we have searched and contacted hundreds of companies one by one and established a drop ship relationship with them. I will show the new owner how to establish more accounts with suppliers and add thousands of more products to the site. I highly recommend adding more products as you can expect your revenue to go up with each new product you add.
• Site comes with 3 professionally developed mini blog sites each with 20 pages of unique content that promote the main site.
• Twitter account with 1180 followers and growing daily (http://twitter.com/salonhive )
• Listed with all major Directories (We have not listed in the Yahoo Directory and doing so will greatly help the search engine rankings)
• Over 5000 Back links from Quality sites
• Over 7000 Indexed Pages
• SEO Marketing plan we have been using to grow the business. (complete white hat)
• Heavily Modified Shopping cart with One Page Checkout
• All keywords and Analytics information
• Primary Domain name
• Over 1100 Products with 40 Quality Drop Ship Suppliers
• System we use to run the business
• 13 mini niche Sites included, All the niche sites run from the Salon Hive admin so keeping track of orders and sales is all done from one admin panel. All the following domains and mini sites are included with the sale:
Salon Hive Videos
• Professional designed Video Section
• Over 7000 hosted beauty videos
• Monetized for Adsense or your own ad network
• Clip Share Pro with Upgraded Movie Player ($350 Cost)
Salon Hive Reviews
• Professional designed and programmed review system
This area of the site has the most potential with the ability to review every single product in the beauty industry. From the Reviews Admin Panel you can review all the products in the beauty industry and either offer the link to the product on Salon Hive or you can use affiliate links or a mixture of both.
Complete automated blogging directory. Bloggers can add their site to the directory by installing a Salon Hive Member Badge on their blog which will then auto approve their blog and list it in the directory. This area of the site has not been promoted yet and is a great method to get Salon Hive branded across beauty blogs as well as increase incoming links.
• Professional designed and installed Beauty Blog with over 200 unique content posts.
• Completely optimized for SEO
• Wordpress Platform
• Professional designed social bookmarking.
• Over 350 bookmarked beauty sites
• Pligg Platform
Please see the attached screen shot for traffic sources
7600+ Unique Visitors a month
All traffic and sales is from natural SEO, data feeds, blogs and referrals.
Women spend a majority of their money online, plus products targeted towards women tend to have a higher markup. With online users increasing this site has great potential to become a million dollar year plus within the next 12-24 months.
We have not even begun to market this site as we have been mainly focused on the usability of the site, so now it just needs to be heavily marketed. Many of the top keywords for brand names have not yet been targeted and many of the keywords that drive sales and traffic are not yet in the #1 spot in the major search engines. Please note we do have a plan in place which will help the new owner achieve this and if you use this plan you can double the current sales revenue this year.
Amount of people to run the business
1 Part Time
Right now I run the business from the South America and have a part time employee outsourced in Canada who is paid $600 a month. I will continue working with the employee so you will need to hire a new employee or if you prefer you can do the tasks yourself. The employee handles all customer emails, sends orders to suppliers, processes refunds, makes Squidoo lenses, works with bloggers for promotions, and runs all the daily business activities. You can do all the work yourself or you can outsource like I have done and spend about 4-8 hours a week on this business checking stats, market research, finding new suppliers, and making sure things are progressing.
I will work with the owner via email and/or msn for 3 months to help you get situated in the business. The new owner can also contact me if they ever need help after these 3 months, but I will provide my full attention for these first 3 months.