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    Dropship Food, Candies, Whatever…
       February 2nd, 2008

    We continue our popular case studies series of the online dropshipping business for sale.

    Reading these posts you should get more ideas about:

    -    what products to dropship
    -    how to market your dropship business
    -    where to find reliable merchants
    -    how to build long term relations with customers and suppliers

    We also refer you to the comparison table of top real dropship supplier lists, but it does not mean that you should focus just on those products sources (though according to our reader’s responses these two dropship sources are really worth what they charge: this one and this one).

    Do your own research to find and set up relations with merchants directly.

    Today we publish dropship candy store case study

    Store averages a 39% traffic growth each month

    •    URL:  www.esnacks.com
    •    Established: 30 Apr 2007
    •    Uniques/Month: 11,000
    •    Page views/month: 40,000
    •    Monthly Revenue: 7,500
    •    PageRank: 3
    •    Min Bid: $35 000
    •    BIN: $50 000

    Description:

    This e-commerce candy store currently brings in around $1,100 – $1,400 of monthly profit after expenses. I am looking to sell the site for around 3x net although a motivated individual could easily make their money back in less than a year by making some obvious updates to the site and by marketing it.

    I am looking to sell this business in order to raise funds for another project of mine. The e-commerce store has an excellent domain and is custom designed and built on a custom shopping cart which exclusively uses Google Checkout and PayPal as the checkout methods. The administration tool for the shopping cart is also custom made. All orders are placed through a drop-shipper who has very few other online retailers, a contract is in place with this drop-shipper.

    Included With This Sale:

    - Website
    - Administration Tool
    - Email List of All Previous Customers (currently around 800-1000)

    Problems with this business:

    - Although we bring in a high volume of orders there are many orders that our drop-shipper has to backorder or are out of stock. If you purchase this site I would suggest establishing a relationship with a second drop-shipper to cover these orders which would probably increase your monthly profit an additional 15%-20%.
    - Like every e-commerce store you will need to answer customer service emails. We currently do not offer a phone number on the site (like Amazon.com) and instead require people to submit customer support requests via our contact form or email.
    - Admittedly I do not do a good job at managing margin levels or adding new products. If you were to adjust products prices and add in newer products then you would probably see around a 10%-15% increase in monthly profit.

    Opportunities for this business:

    - Add in the ability to take credit cards directly on the website. Currently only Google Checkout and PayPal processing is used which may deter potential customers from ordering.
    - Update the categories and homepage. I haven’t updated the homepage or category pages since I started the business. I imagine this would help increase sales even more.
    - Market the website. This site is not marketed in per click engines or through any advertising. Email marketing may not be a bad idea, especially since we have hundreds of emails of people who have previously ordered through the website that you can market to. I imagine if you were to market the website then obviously the order volume would increase.

    Revenue Details:

    Unique traffic comes in (primarily from search) and orders through the website. Once an order is placed we relay it through our drop-shipper at a lower fee and keep the remaining difference. Every month has always exceeded the traffic levels of the previous month. We have seen an average unique visitor growth of 39% each month over the previous month.

    Traffic Details:

    Unique Visitor Traffic Growth Statistics
    Average Monthly Growth: 39%
    December ‘07 to January ‘08 – 19% Growth (9,270 to 11,000 (estimated))
    November ‘07 to December ‘07 – 27% Growth (7,278 to 9,270)
    October ‘07 to November ‘07 – 22% Growth (5,980 to 7,278)
    September ‘07 to October ‘07 – 85% Growth (3,235 to 5,980)
    August ‘07 to September ‘07 – 7% Growth (3,034 to 3,235)
    July ‘07 to August ‘07 – 73% Growth (1,751 to 3,034)

    Wholesale Price for Digital Camera?! Is the Lower the Better?
       January 24th, 2008

    If you are in the Home-business you will definitely agree that you are constantly looking for the best wholesale prices from the suppliers you want to get goods from. So let’s find out what a WHOLESALE PRICE is?

    First of all, let’s find out what Wholesale is. Wikipedia.org says:

    Wholesaling is the sale of goods or merchandise to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services.

    United Nations Statistics Division says:

    Wholesale” is the resale (sale without transformation) of new and used goods to retailers, to industrial, commercial, institutional or professional users, or to other wholesalers, or involves acting as an agent or broker in buying merchandise for, or selling merchandise to, such persons or companies. Wholesalers frequently physically assemble, sort and grade goods in large lots, break bulk, repack and redistribute in smaller lots.”

    But the definition doesn’t say anything about the wholesale price being the lowest product price imaginable.

    Here, at Dropshiparea.com we publish a Directory of trustworthy suppliers who are eager to ship the products directly to your customers’ porches. Moreover, the suppliers will sell the goods in small bulk quantities at the prices of larger bulk quantities thus giving you possibility to put some money in the pockets. Nevertheless, in order to understand the real nature of the market, you have to find out what WHOLESALE means.

    A wholesale company is a company that has its own warehouse where it stocks products. The company sells these products to you at the prices that are much lower than Manufacturer’s Suggested Retail Price. This is the real substance of wholesale.

    Another problem of setting the price of the product on your site is finding the right margin between the wholesale price and Manufacturer’s Suggested Retail Price. In our case, we work only with reliable product suppliers (not middlemen) which do their best to find this margin themselves, and as a rule their prices can be taken for granted.

    Yet, price choppers can easily turn the market upside down. Both the manufacturers and the wholesale suppliers struggle with this phenomenon and by today they have found a number of means that help overtake these choppers once and for all.

    If you think that, if someone’s price is lower than yours then everybody will buy the product from this someone, YOU ARE MISTAKEN. Why do you think that other people will find out that your price is higher? In fact, they will most definitely buy your product if you provide good customer care.

    Remember one important fact: if you want to make your business more attractive to the customers, DO NOT try to find what prices to chop, but DO YOUR BEST to care about your customers’ needs.




    Don’t Report Internet Scam: Find False Wholesale Product Suppliers Yourself
       January 22nd, 2008

    Today, though it was in the Past (in fact it has always been like this) the Interned is stuffed with hundreds and even thousands of “Wholesale Suppliers” for your business. And each and every supplier assures you that it is a trustworthy “real” supplier. But is it really so?

    Do you really want to throw away your money? No, better to put it this way: do you want to put your money in someone else’s pocket? But in fact, if you pay all these membership fees, charges and other payments, YOU DO! To my mind it is a mere waste of your money and time to pay for the lists that are simple useless to you. And the worst thing is that they know that they sell you the junk that doesn’t cost a cent, but they still do it, and that is what makes them scam!

    You may ask the question: why should I pay more for your directory if I can find the similar lists for as little as $3. The answer is simple. You get exactly what you pay for! This is one of the rear rules that have no exceptions from.

    Here at Dropshiparea.com we work hard to supply you with tools and methods of earning money. But all these methods are legitimate and trustworthy. The thing is that we believe in the former “American dream”: we are eager to work hard and earn our living with our own hands (read: not make a cat’s paw out of somebody).

    It goes without saying that it is much easier to cheat on both you and me and get money faster, but it is not our way!

    I’ll give you some examples of programs that now flock the Internet, but will hardly ever give you a chance of earning money and are more likely to make you one step closer to a business failure.

    • TV packages

    Usually they are called something like this: “Home Business all-in-one package.” As a rule such programs aim at selling you CDs or DVDs and nothing more. Beware of such cheating. Just remember: there are NO secret formulas that will make you rich at once, and even if there were, they won’t be sold everywhere. DEFINITELY!

    • Drop shipping. Over 50k products

    Out of these 50k products and the companies that sell them, 90% will be middlemen.

    • Buy a list of drop ship suppliers for $0.0000001

    Do you want to know how these lists are made? Ok listen, you go to google.com, type “wholesale supplier” in the search form, take first 100 entries and copy them to a word file. That’s it. Then you go somewhere on the Internet. Name the list “Wholesale Suppliers’ List” and sell it to the eager audience! It is not the right way to make money for you.

    These are just a few examples of what YOU SHOULD NOT TRUST and try when starting your own home business. Later you will find dozens of new frauds, but it will only come with experience.

    Recommended:

    8,000 Pre-Screened Legitimate Wholesalers

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