The Economics of Pillow Slides


Pillow Slides have been one of the hottest products in 2021. You could not go on TitTok this past year without seeing a video about Pillow Slides. I started tracking Pillow Slides at the start of September. Let’s break down this business.

Here is a video of my breakdown on Pillow Slides (or you can keep reading below):

Monthly Revenue

September: 4200 orders for $125,000 in sales

October: 5200 orders for $150,000 in sales

November: 7200 orders for $220,000 in sales

December: 8200 orders for $245,000 in sales

Website Traffic

During these 4 months, received about 30,000 – 40,000 website visitors per month. However, this is down from 100,000 visitors in June.

“Pillow Slides” Search Data

The term “pillow slides” first started getting searched in December 2020 (when launched). From February 2021 – July 2021, “pillow slides” was being searched between 40,000 and 50,000 times a month. From August 2021 – November 2021, “pillow slides” was being searched between 20,000 and 30,000 times per month.

Product Sourcing

This product can be found on Alibaba from a few suppliers. Depending on the quantity you purchase, you can get your per unit cost for around $2/pair. 

Product Packaging

Pillow Slides come in a custom zip bag. The zip bag has their logo, slogan, and Instagram handle on it. However, if you attempt to pull up their Instagram account, you will find that it is offline. Also, Pillow Slides switched Facebook advertising accounts. I do not know the back story of why this is but it does pose a problem for their packaging when they highlight an Instagram account that is no longer active.

Fulfillment and Shipping

Pillow Slides uses a 3PL, Velocity World Wide to warehouse and fulfill their orders. The orders I have received have come from a warehouse in Miami, Florida. Velocity World Wide is also the company on the import record from China for Pillow Slides.

Total package weight is 8oz and ships USPS Frist Class. The estimated shipping cost is about $3.50 to ship this product. 

Contribution Margin sells these sandals for $29.95. These can be sourced for about $2/per. It costs them about $3.50 to ship. Then add in processing and fulfillment fees. The total cost to get me a pair of pillow slides costs around $10. 

Contribution margin is approximately 67%. 

I estimate that Pillow Slides has generated just north of $2M in total revenue since they launched in late 2020. This means they have generated about $1.3M in contribution margin (then you have to pay for all your advertising and operational costs).



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