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  • Archive for the 'Dropship Case Studies' Category

    Dropship Fragrance / Perfume
       August 29th, 2008

    A quick new case study for all perfume and fragrance lovers - make money dropshipping the products you enjoy (this is not the first dropship perfume case study on our website: check this one and this). I guess it is the first case study that uses Yahoo! Store Merchant platform, so it makes it really interesting as an opportunity to explore new sales channel.

    If you would like to see what other products are successfully dropshipped online or learn how to market your dropship business – our dropship case study category is a great starting point.

    Product sourcing – no changes here – check the top players in the market, but keep in mind that directly set relations with some local distributors and dealers are likely to be more profitable for your business.

    Nonetheless, it is a good idea to start dropshipping business with some merchants from those lists and with some experience gained switch to some local dealers later.

    Skinfragrance Established Perfume Ecommerce Site - $10,000 Revenue / Year

    Perfume / Cologne Yahoo Store - Established 2005

    URL: www.skinfragrance.com
    Established: Sat Nov 26 2005
    Page views/month: 7,000
    Monthly Revenue: 1,000
    Uniques/Month: 2,000
    BIN: $7900

    Description:

    www.Skinfragrance.com

    Offered for sale for the first time is online retailer Skinfragrance.com. Skinfragrance is an online perfume/fragrance retailer. The site has been online for since Nov 2005, and with little promotion has done around 38K in sales over that period. (Read more in “Why am I selling” below)

    Skinfragrance.com targets the high end market of Perfume / Cologne. Site currently carries around 5000 to 8000 products at any given time.

    We are ranked for numerous terms:

    #6 Google - best selling perfume
    #9 Google - best selling cologne
    #9 Google - top selling cologne

    Numerous other (higher traffic keywords) – a few pages deep. Skinfragrance.com can pass other sites fairly quickly based on Domain Age alone….combined with a few quality links.

    What’s Included
    :

    • Domain Skinfragrance.com
    • Current Customer List/Mailing List (Opt In)
    • Web Design / Content

    Why is Skinfragrance for sale?

    I started this ecommerce site in Nov of 2005 with the intention of letting the domain age. Sales started coming in quickly and I did initial promotion (link building etc) Domain is still currently included in BOTW directory among others. I have since started many other projects and have a very demanding job within the Ecommerce industry. I do not have time to take Skinfragrance.com to the next level.

    I simply have not had time to update products. I have had to cancel orders because of stock issues. New owner would need to put in the 15-30 minutes a day to update products.

    Skills Required:

    Site is run on the Yahoo Store Merchant platform and has been since the beginning. I would expect the new owner be familiar with ecommerce sites, have some Excel Skills (loading csv imports) – some degree of programming would be great but not necessary. You will also need your own Merchant Account.

    Revenue Details:

    Products are drop shipped and no inventory is maintained. There is much room to grow profit margin simply by moving to a inventory & fulfillment model.

    Revenue is nearly all credit card based at this time.

    Unexploited revenue opportunities for this site include advertising of course, but also there exists a great customer interest in up to date information. Revenue can greatly be increased with simple link building, comparison engines, PPC, etc.

    - I have briefly advertised with Nextag and Shopzilla and Yahoo Shopping. Good Results but I have not tracked well enough.

    Generating around 10K plus a year in Revenues - Profit Margin ranges from 15% to 90% based on price of item. Most products are currently at about a 25% to 30% markup.

    Profit /month – Ranges from $150 to $400 (Potential is with Aged Domain) Traffic Details:

    Traffic is generated via:

    • Google Organic (Product Search) - I have problem with showing images in Product search and have not had time to fix. This along would probably double traffic from this source.
    • Around 1500 – 3000 Uniques per/month - Dec much more – See Graphic
    • Organic traffic via viral word of mouth on forums, etc
    • Newsletters utilizing Opt-in subscription tool to capture browsers and push for increased conversion.
    • Repeat Buyers

    What would I do to take Skinfragrance to next Level?

    • More Promotion (Via Link Building) - Would not take much – I was ranked for term “Discount Fragrances” after getting to links with correct anchor text.
    • Automate Inventory - Take Supplier XML / CSV file and automate inventory levels. This takes a little programming knowledge or outsource the work.
    • Start Stocking Products
    • Better Analytics – Install Google Analytics with Revenue Tracking

    Expenses:

    • I have run a few campaigns over the years on Yahoo / Google but nothing more than a few hundred bucks.
    • $39.95 Month Yahoo Store
    • $19.95 Merchant Acct. / Month

    Revenue Details:

    95% of Sales Driven from Organic Traffic
    Revenue Per Year $10,000

    Traffic Details:

    95% Organic - Google

    Dropship Swords Online
       August 26th, 2008

    Here comes another dropship business case study. The website was successfully sold for $35 000 – there are people confident that dropship business is a lasting business model to invest funds into a website like that

    As always I recommend going through our dropship case study categorymore products ideas, more techniques how to promote those products.

    To tell the truth, I am impressed with the dropship site in question performance. Launched just 10 months ago and with min paid advertising it shows great results. If we assume tat all information is authentic then probably the success keys are proper product research and quality SEO.

    Swords are not high price tickets most comes in the range of $20-80.00: so one needs to sell LOTS of swords to make 7K monthly.

    And what about the targeted audience? Fast check shows us that top audience is females (58%) aged under 18 (25%). Well I guess I need to better follow what products teenagers and kids find interesting nowadays…

    Sell Swords Online - $7k+ Revenue/month

    Strong PR4, 1,670 Indexed Pages, Many Top 10 Keywords

    •    URL: www.heavenlyswords.com
    •    Established: Sun Sep 30 2007
    •    Uniques/Month: 20,000
    •    Page views/month: 155,000
    •    Monthly Revenue: $7,716.98
    •    Google Pagerank: 4

    Description:

    You do not want to miss this outstanding opportunity! It is 100% dropship business.

    This terrific site opened its doors last October and since then it has continued to increase its revenue.

    The site ranks very high in Google for dozens of terms; I’ll list a small portion of them here:

    # 2 for Bleach Swords
    # 3 for Anime Swords
    # 3 for Fantasy Swords
    # 5 for Video Game Swords

    Many interior pages carry Page Rank, some of which are PR3.

    Expenses are very low, July’s expenses were $294.53 which is broken down below:

    AdWords $119.53

    Toll Free Answering Service $175 (they answer the phones, take orders, etc.)

    Of course, Cost of Goods Sold is also an expense. My markup is about 50%.

    Visitors since the beginning of the year are as follows:

    Jan. 9,979
    Feb. 12,651
    March 15,795
    April 16,496
    May 23,065
    June 23,536
    July 22,948

    As you can see, this site has a steady income stream and huge potential to make even more.

    Why am I selling? I am recently engaged; planning for the wedding is taking up a lot of my time so I do not have the capacity to keep growing the business. And since we have to pay for the wedding ourselves, I really need the money.

    Revenue Details:

    Jan. $2,555.91
    Feb. $2,411.36
    March $4,597.29
    April $4,148.04
    May $7,382.83
    June $7,296.99
    July $7,716.98

    Traffic Details:

    The site has many repeat buyers!

    11.26% Direct Traffic
    26.77% Referring Sites
    61.97% Search Engines

    Dropship GPS Units
       August 18th, 2008

    GPS units are hot products right now. Demand is huge (so is competition). Our new case study features a dropship project that was on sale (and sold) recently.

    Have a look at a few keywords from Wordze, quite popular (but I am not sure if it displays correct info as there is no clear explanation how that keyword data received unlike with WordTracker) keyword research tool:

    7308 Keywords Found

    Count

    Estimated

    KEI

    gps

    10246

    82541

    0.14

    garmin gps

    4572

    36831

    3.1

    gps navigation

    2744

    22105

    0.2

    gps tracking

    2598

    20929

    2.41

    magellan gps

    2343

    18875

    0.95

    gps reviews

    2191

    17650

    12.52

    gps systems

    2099

    16909

    5.97

    gps software

    2045

    16474

    1.62

    gps vehicle tracking

    1743

    14041

    4.96

    buy a gps online

    1596

    12857

    443.34

    gps vehicle tracking system

    1445

    11641

    8.69

    gps vehicle tracking device

    1395

    11238

    363.69

    gps mapping

    1381

    11125

    3.71

    gps equipment sales

    1347

    10851

    6781.88

    The below case shows you potential of dropshipping GPS units. As I have mentioned huge demand is compensated by huge competition. Take your time to explore the top search engine results for GPS keywords listed above. You will see Amazon, Overstock, more e-commerce stores, price comparison engines like Shopping.com, PriceGrabber.com on top.

    In this situation it is a wise decision to start with eBay to test the market.

    Check the featured dropship lists for GPS merchants to dropship your sold GPS units.

    Also browse our dropship case study category for more products to dropship – probably, GPS units are not the product you are passionate about.

    GPS Drop Shipping Website for Sale

    GPS units are very popular with lots of growth ahead!

    URL: www.RockCreekGPS.com
    Established: Sun Dec 31 2006
    Page views/month: 8,591
    Monthly Revenue: 500
    Uniques/Month: 1,348
    Site Sold For: $ 1800.00

    Description:

    This listing is an asset sale of an established website - RockCreekGPS.com. The site has not had the attention it needs lately and it needs a new home. The site is still active and listed products and pricing just need to be updated. Orders still trickle in with no promotion running at all. This site is ready to go with little work!

    The site was designed by me and started up about January 2007. We had a great year promoting the site and selling online but some family issues took precedent and the site maintenance fell to the side. It would not take much to get the site back up and running effectively to compete in the marketplace. I can offer many suggestions and avenues that will bring this site back up to making a profit.

    The semi-custom site was built right and with the ability to expand. I used the Volusion platform so it has an affiliate network built in, the ability to list coupons and sales, newsletter and updates, and really a great backend to manage the site and products.

    First and foremost, all the GPS products and accessories are all dropshipped. I have 2 vendors I work with to make sure when orders came in I am able to get the hottest and latest GPS units to the customer. A new owner of the site would need to establish accounts with these dropshippers. The dropshipper’s website interface makes it easy to place the orders and not have to handle any inventory or shipping!

    The second part of the site I integrated into it was GPS rentals. Believe it or not, there was only one other company that offered GPS rentals about a year ago other than me. As you can see there have been many copycats since then. The GPS rental market was just another way to meet a need that was there, the new owner would not have to integrate this.

    What is included in this sale:

    • The domain - RockCreekGPS.com
    • All site content and custom graphics
    • Customer List: Approxiamately 3,100 names and emails of people who signed up for newsletters, coupons, etc. (please note, ~3,000 of the names/emails were exported before an update last fall, the other 100 are new signups after the update reflected in the backend of the site)
    • Drop shippers contact info

    Financial details:

    When the site was running profitable I was making anywhere from $250-$1,500 a month profit, this included sales on eBay and Amazon.com, these outside sales do not show in the backend of the site. Whenever a new GPS comes out it is hot and most of the time you can get it before anybody else through the dropshipper. This equals great money!

    On an average I would spend about $100 a month on advertising - Adwords only. $50 on GPS products, $50 on GPS rentals. This is the only advertising I did, other than word of mouth.

    I have the site hosted and integrated with Volusion.com. I have over 500 products so the monthly web fee is $99.95. I would recommend staying with Volusion but it is totally up to you. I can transfer the whole site to you through Volusion, all you need to do is enter in new credit card info for billing and setup your merchant account (Paypal, Google, Credit Card Merchant, etc.)

    I have tried to cover some basic info here but please send me an IM or email with any questions, I am here to help!

    Revenue Details:

    1. Direct GPS sales from the site
    2. Ebay and Amazon auction sales
    3. Google shopping search engine
    4. Word of mouth

    Recommended:

    Hot Selling eBay Products Tool

    You are currently browsing the archives for the Dropship Case Studies category.

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