If you have being reading some of my previous posts, I believe you have seen me recommending using alidropship turnkey website as one of your option to kickstart your ecommerce business. The main question on your mind will be the ROI if you have vested your money with them.
For this post, I will look to examine one of the ecommerce stores that started in Aug 2018 and have engaged the Alidropship team to create a custom woo commerce site for them.
Looking at the homepage design and domain name megadeals.com, the website operates in multi niches like fashion, men accessories, painting and gadget accessories. According to the site owner, they currently accepts CoinBase Commerce Crypto Payments and have around 200 unique Products.
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Estimated Profits Margin
Looking at some of the products sold. We can roughly understand the gross margin of this site. which is more than 50% based on similar items that you can find on Aliexpress. Of course,you should be able to get a better cost depending on your supplier sourcing skills.
Google Analytics Traffic
We are also able to get the most recent google analytics traffic data for this site from May 2019 to Apr 2020. Just in case you are not sure what it the difference between uniques and page views. Uniques means the number of visitors that land from the site and page views means how many pages views did individual visitor surf before they exit the site.
Traffic Sources
You can also see that this site serve traffic mainly from the US and Europe areas and is the site owner is growing it organically through social and organic channels. So the next big question is how much does a dropshipping site with 300-400 visitors make a month with free traffic?
Website Income from May 2019 to Apr 2020
Punching the numbers in my calculator, I am adding up to total revenue of USD$381 and USD$272 net income a year.
Marketing Strategy And Total Capital Invested
According to the site owner, he has invested in Ali drop ship Woo Commerce Custom Store at $699 with Permanent support from Ali Drop ship Team. Ali Woo plugin for automatic product full fulfilment and product addition to a website with 1 click worth which at USD$89
To grow social media traffic, he has invested in Social Rabbit plugin which cost USD$79 for auto posting product images and tags to Instagram, Twitter and Pinterest and spent 150$ for SEO from Fiver to make list on all Search engines.
Total Cost = $699 + $89+ $79 + $150 = USD$1017
He did mention that someone if more marketing budget would be able to drive more traffic and sales to the site via facebook ads.
Our Opinion
For an investment of USD$1017, the owner is able to generate a dropshipping side business with cashflow of $200+/year. Of course, it is possible to reduce the capital vested as alidropship do offers turnkey website options that cost less than USD$699. Check out our recommended tools here if you are keen to setup a similar dropshipping business for yourself.