Welcome back gentlemen, it’s time to talk more about drop shipping. About a month after the sale of my first store, I helped my friend start his own.
The store is in an extremely competitive niche and is not ideal to be doing business in, but my friend has more than 10 years of experience in the niche and we believed that we could slowly gain market share.
Turns out, we were right.
About The Store
Like my first store, this store has an average order size of around $150, so it is more of a long term play. The profits aren’t huge per sale, so it’s going to take some time to scale up.
However, unlike my first store where I didn’t have the time and money to invest long-term, my friend does.
I got involved to teach my friend about drop shipping, and to stay active in the scene while I thought of my next big idea, (I have two new stores in the works which will be perfect examples of what criteria makes a truly great niche).
Anyway, it’s been almost three months since the store has launched, and I’d like to now talk about what’s been working and what hasn’t been working with the store.
The Good And The Bad
Like I mentioned earlier, the store is in a ridiculously competitive niche. There are probably 100 different stores that sell the same products.
The only reason we started it is because my friend’s deep experience in the niche is much better than the competition, and he wouldn’t have had the guts to start drop shipping in a niche that he wasn’t familiar with.
I honestly didn’t know if we would ever make a sale just based on the number of competitors, but it turns out that people really seem to like us as we are quickly developing a loyal following.
While we only have a sliver of a sliver of the total market, that just shows how much room we have available to grow.
We’re currently doing around $6,000/mo, and we’ve even had calls where people said they heard about the store from a friend, so we’re happy with the results so far.
If you look at the screenshot above, the store had about a month hiatus from mid March to mid April, as we were testing various pricing and marketing strategies.
PS: Any new store will have a lot of testing to be done at the beginning, but this month was unusually long based on finding a good price point between the 100 or so other competitors.
Following my success with Google Shopping from my first store, I quickly dove right back in.
Adwords is probably one of my favorite parts of running online businesses as there is so much you can do inside of it.
There’s always a way to further optimize your campaigns and the amount of data and statistics you can find is amazing.
Here’s the past 30 day results from desktop visitors:
But the biggest change in this store compared to my last store, is our blog and newsletter.
Since my friend has so much experience in the niche, he is writing amazing articles that are attracting a lot of attention.
We joined several big Facebook groups that serve the niche, and link our blogs there which are drawing as many as 1000 visitors per article.
While the conversion rate isn’t high, as most visitors from Facebook are only coming to read, this is how our brand is spreading and gaining authority in the niche.
In addition, we whipped together a short ebook to give away in exchange for joining our email list. We’re already up to 300 people, and gain about 5 every day.
We send bi-weekly emails with relevant news, as well as specials that we have on the site.
Overall, I’m very happy with the site so far. I think that this time next year it’s going to be 5x the size and will be one of the major players in the niche.
And like I said before, I have two new stores about to launch that I can’t wait to talk about. These ones are going to be real big, real fast.
Let me know what you think of the store in the comments section below, and be sure to vote in the poll.
Catch ya next week – Brian.