Though we feature on this site product sourcing through verified merchants you can make your own research and search for your own dropshippers online establishing direct contacts. You need to keep many things in mind, but the most important one – will you get really wholesale prices competitive on the market?

With time you can make one extra step – and become a dropship merchant yourself like today’s case study with electronics dropshipper. To tell the truth, it has never occurred to me to look in that direction. And I admit that I find some common sense with this idea – once you know the market of the products you work with (in our case – gadgets, MP3 players, MP4 players) you can establish good contacts in the industry and buy some heavily discounted stock for your own operations – also offer them to dropship for many dropship affiliates.

How can you achieve that? Here is how:

Well Established Business | 12,000 Profit | 1500 Orders completed | Huge Growth Potential

We are the “UKs Best Dropshipper” – Huge growth in our sector!
• URL: DropTheGoods.com
• Established: Thu Nov 20 2008
• Uniques/Month: 6,517
• Page views/month: 38,858
• Monthly Revenue (USD): 21,000
• Google Pagerank: 0
• BIN: $14 000

Description:

Regrettably we have decided to sell our successful online business. Although we have not been established long we have seen unprecedented sales considering our advertising budget which has remained at next to nothing throughout.

We are a UK based Dropshipper. We specialize in electrical items such as MP3 Players, MP4 Players, Phones and Gadgets. Our customers are people who want to make some extra money but may not have the investment needed to purchase stock first. This market is growing very quickly with the economic situation the world is facing, everyone seems to be looking for second income streams and dropshipping is the perfect solution.

All the products we sell are “unbranded” and are all completely legal to sell, unbranded goods at the moment are also increasing in popularity with the state of the economy, a lot of people are looking for cheaper products and unbranded goods are the way to go.

Just to confirm, we are the dropshippers i.e. we hold the stock

Since our creation at the end of November 2008 we have only really advertised on one related forum. That one forum has been VERY good for us. It has generated over 1500 sales and a Turnover of ?62,000 ($86,000), the current products on the site give us an average of 20% profit after ALL costs. We have plans on adding new products that will offer much better margins – 30-35% which will drastically increase the ?12,000 profit we have made so far.

With some serious SEO and advertisement www.DropTheGoods.com could become the biggest dropshipper in the UK. We have a solid base of customers (over 400 registered members) which have made over 1500 orders with us. Imagine what the orders will be like with double the current members.

If sales continue to increase as they have we estimate that the minimum profit the new owner should make anywhere between ?50,000 and ?100,000 in the next 12 months!

The sale will include full website control, domain name, details of our suppliers and a non-compete agreement (subject to terms).

Revenue Details:

Through sales of items. Turnover currently is at ?62,000 and Profit is at around ?12,000

Traffic Details:

Nearly all visitors come from a 3rd party forum and word of mouth.

We focused our analysis on separate products in our past articles:

Diamond Dropshippers
Jigsaw Puzzle Drop Shippers
Coffee Dropship
Feng Shui Drop Ship
Diaper Bags Dropshipper

We also follow dropship sites that come on sale so that we could discover profitable markets and products, a few recent case studies include:

Anime Dropshippers
Playstation Dropshipper
Pool Products Dropshipper
Basket Dropshipper
Dash Kits Auto Accessory Dropshipper
Men Apparel Dropshipper
Waterproof Photo/ Video Housings Dropshipper

There is another way to discover products to profitably dropship and combine the results of the research with the offers that come from the top product sourcing channels available on the market – research based on the brand. Brands rule the world – we need just find a brand perfect for our dropship business.

We chose Oakley for our test analysis:

Decades of Oakley innovation have been awarded more than 540 patents that elevate physics to the level of art. Technologies transcend sports to enhance the lives of consumers, and more than 110 countries now enjoy a full array of market-leading products including premium sunglasses, goggles, prescription eyewear, apparel, footwear and accessories. These products represent our commitment to excellence — a passion that redefines what is possible for those who defy their own limits.

Premium sunglasses, goggles, prescription eyewear, apparel, footwear and accessories – perfect products for online business mixed with top quality and brand recognition.

Demand is steadily high over years

Rising searches

Another step for demand research – let’s see what keyword research tool has to say about our Oakley dropship idea:

Many keywords searched, but I should admit that competition is tough.

Remember to check popular products on eBay

The above few steps take 2-3 minutes, but you get some idea about demand. KEI indicator helps to get and idea about competition. Take one more step and browse Google top results to see who is in Google top 10 for 5-10 keywords – any chance to get there if you choose to develop an online store? Now we are aware of the competition.

OK, time to make some conclusions. I hope you have got the idea of analyzing products to dropship by brand.

I do not think I will try Oakley dropship right away – I would continue research comparing Oakley products pricing available from dropship merchants, do some eBay testing, get into the know of Oakley products – and then make a decision.

Is it a viable idea to do big ticket dropship? Will people purchase diamonds from your jewelry dropship outlet? I am not familiar with jewelry market to the extent I wish, but we know of a few successful big names running online stores – Diamond.com, for example. So a quick look into online jewelry scene.

Demand is slightly declining over years though regional interest for jewelry is strong in the USA, very strong. We should keep in mind that I did not research a transactional keyword, but a general one. It means that people over time might start buying more jewelry, but do less informational searches

There are some rising searches, of course, like:

Another quick check shows us most popular searched keywords in the industry and shows competition ratio:

Tons of searches and lots of competition…

Suppliers: it is a sort of surprise to me, but there are SO many dropship merchants offering to dropship jewelry. Is it god or bad news? Hard to say – it could mean that there is tough competition in the industry.

Now back to the question – will people buy high ticket dropship items from your store? I do not talk about some silver or semi precious stones products – I talk about items that cost hundreds and thousands.

We update our dropship business case study category for a few years now, we do it regularly. And we have a separate category – jewelry dropship, but when you check it you will be disappointed with two business cases that do not inspire (at least, me personally) to enter jewelry market as a dropshipper affiliate.

When I put buyer’s shoes I am very doubtful that I would purchase a high ticket item or product from some unknown store. I will also definitely give a call to talk to a real person and make sure that I deal with a legitimate and professional company. I might be wrong, but I believe that most buyers will call before buying jewelry online – it makes jewelry (as well as other high item products) a poor seller for dropship affiliates.