February 23rd, 2009
Our today’s dropship case study deals with dropshipping Playstation accessories. This is not the first profitable video game business in our collection of dropship case studies. You can find more detailed stories here:
Playstation (PSP) Accessories Dropshipper
Video consoles, video games, video console accessories – PSP, Xbox, Nintendo – are hot online sellers for a couple of years now. And the trend is likely to last. This proves Google Insights for Search tool as well as the list of eBay top sellers where you can always spot some of the products from this category.
It is definitely worth checking with verified dropshippers what they have to offer and at what prices
Now when you have examined the product line it is time to have a look at the profitability of this sort of dropship business. And the owner is generous to provide us with some details in addition to mentioning of $2000 monthly revenue – he provides a detailed breakup of the prices for 5 top products – invaluable information:
Pandora Battery
- We receive $15.14 and supplier price is $6.40
Pandora Battery & 2GB Mem Stick
- We receive $26.14 and supplier price is $14
Pandora Battery & 4GB Mem Stick
- We receive $33.14 and supplier price is $17
Pandora Battery & 8GB Mem Stick
- We receive $45.14 and supplier price is $21.5
16GB Mem Stick
- We receive $77.14 and supplier price is $46
What is our conclusion? Yes, very nice profitability. And you have enough ground to compare these prices with the prices that your dropshipper will offer you
Another important issue – how to drive traffic to your store. There are a few ways to get your potential customers to the door of your dropship store – e-mail marketing, SEO, PPC, CPM, social sites, etc. some techniques do not fit some do – the project in question is a few months old, so the most expensive and the fastest way to drive targeted traffic is applied – PPC (Google AdWords) though with time it is possible to expand the list of traffic sources.
PSP Dropshipping Business – $2000+ / Month
Easy To Run – 1Hr/Day At Most – Low Competition Niche – Awesome Deal
• URL: www.PSPPandora.net
• Established: Wed Jan 14 2009
• Page views/month: 2,400
• Monthly Revenue (USD): 2,000
• Uniques/Month: 1,300
• BIN: $12 000
Description:
My site: www.PSPPandora.net
A premium established website.
It is a dropshipping site for Playstation Portable (PSP) accessories, especially batteries and memory sticks. The custom design was done by a professional designer. The writing was obtained from other sites and our dropshipper’s site.
The site is very easy to run and requires about 1 hour per day at most to process the orders and answer customer e-mails. All products are shipped through a dropshipper so there is no need to maintain inventory or anything like that. You receive an order and payment, then you send the dropshipper the payment and order, and the product will be shipped out directly to the customer. No work on your part. Very straightforward and easy. Also, we have some of the best prices on the net for these products.
You will get complete information about the dropshipper, and if you buy in bulk, you can get even more savings.
This highly targeted niche isn’t very competitive so there is great potential for high profits. Every PSP owner wants to install custom firmware, custom applications, games, etc. So the demand for these products (Pandora Batteries and Memory Sticks) is really high.
This supplier has accessories for many other video game consoles. As well as other non video game accessories. So basically, by buying the website and getting the supplier, you’d have access to a vast number of items at very low prices. So you can easily make similar sites for other video game platforms.
The current BIN of $12,000 is only about 6 months of profits and considering the new owner will receive the supplier source as well, opening new windows, its reasonably firm priced.
Why am I selling?
I am currently in Medical School and had made this site mainly to sell it as I don’t have much time to expand it.
Traffic & Revenue Generation:
Most of the traffic is generated through Adwords – Both Search and Content networks. The new owner will receive the campaign as well as some tips and tricks I have learned along the way to maximize the revenue. I have tried a lot of things so I know what works and what doesn’t. Occasionally, I have also posted on different PSP related forums in relevant topics and sections. I also posted a few products on eBay. However, I didn’t have time to do any of that much. Mainly (over 90%) is through adwords. The campaign is for $10/Day. So about $300 per month. I tried different things and I believe now the campaign is tweaked. The new owner can also try things and I’ll suggest things as well. I also have few other advertising tips that will help that I will mention to the new owner and not release here in public.
Occasionally, I also get e-mails asking for custom pricing and such, so those add to sales as well.
More promotion, SEO, etc. would easily increase the revenue but since that’s all “potential” it’s not included in the price of course Adding tutorials, FAQs, etc. would drastically increase the search engine rankings.
I will provide one year of hosting for free.
All payments are collected through Paypal and also paid by paypal to the dropshipper. You will just have to change the paypal codes to yours. I can help transition the site completely.
Now for product margins:
Five main products:
Pandora Battery
- We receive $15.14 and supplier price is $6.40
Pandora Battery & 2GB Mem Stick
- We receive $26.14 and supplier price is $14
Pandora Battery & 4GB Mem Stick
- We receive $33.14 and supplier price is $17
Pandora Battery & 8GB Mem Stick
- We receive $45.14 and supplier price is $21.5
16GB Mem Stick
- We receive $77.14 and supplier price is $46
Those make up about 90% of our sales. Other 10% are mixed combos, people choosing to buy like 3 8GB or 3 16GB etc.
All the payments in the screenshot represent products sold from the site. The odd payment prices pertain to custom payments.
This is truly a great opportunity and you can earn for doing practically nothing. Requires no maintenance. And you can start right away.
The BIN is set at about 6x the monthly revenue which is reasonable and a bargain for such a premium site. All screenshots attached.
We will accept Escrow.com, Western Union, Wire.
Revenue Details:
Please see above
Traffic Details:
See Above