Study: Health and beauty products best for drop-shipping
Albany, N.Y. – Retailers can maximize revenue from drop-shipping by adding health and beauty supplies while staying away from electronics. By analyzing 750,000 products added by retailers on its merchandising and fulfillment platform in a 12-month period, CommerceHub found that the number of health and beauty supply products grew by 92% while increasing revenue in the product category by 130%.
On the flip side, the number of electronics products increased by 59% while only growing revenue by 15%. Other leading product categories for drop-shipping include bedding & bath (50% increase in SKUs and 57% increase in revenue) and baby & kids (63% increase in SKUs and 78% increase in revenue).
Other lagging categories for drop-shipping include sports & outdoor recreation (18% increase in revenue and 68% increase in SKUs), computers & networking (10% increase in revenue and 39% increase in SKUs), and electronics & entertainment (15% increase in revenue and 59% increase in SKUs).
True Value net margin drops in Q2
Chicago – True Value Company posted a quarterly net margin of $23.2 million, down 2.5% compared to $23.8 million the prior year period in the second quarter of fiscal 2014. Revenue was $429.5 million, an increase of 4.5% from $411.2 million for the same period a year ago.
Same-store sales rose 4.2%. True Value Company’s expanded farm, ranch, automotive and pet product assortments, plus seasonal and plumbing categories, drove the majority of sales increases.
Twitter proves skeptics wrong
Twitter posted solid growth in user metrics for its second quarter, including strength in mobile, which allowed the social media platform to exceed sales and profit forecasts.
Twitter said it had 271 million monthly active users during the quarter ended June 30, an increase of 24% compared to the prior year. Roughly 78% of those users were on mobile devices, a 29% increase from the prior year.
"Our strong financial and operating results for the second quarter show the continued momentum of our business," said Twitter CEO Dick Costolo. "We remain focused on driving increased user growth and engagement, and by developing new product experiences, like the one we built around the World Cup, we believe we can extend Twitter’s appeal to an even broader audience."
Revenues during the quarter increased 124% to $312 million from $139 million. The surge in sales did not help the company’s bottom line as Twitter report a net loss of $144 million compared to $42 million the prior year. However, on an adjusted basis, Twitter said it earned $14.6 million compared to a prior year loss of $16.3 million.