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
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.
• 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.
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.
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
• 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
95% of Sales Driven from Organic Traffic
Revenue Per Year $10,000
95% Organic – Google