Flippa Business
e-Commerce - Design and Style

Private Listing

Asking Price
$175,000 USD
Find out more

Angus Heseltine

Australia

About the Seller

Dr. Angus is a Chiropractor living in Australia. Seeking to spend more time out of practice with his pre-school kids, he built an e-commerce business allowing him to do so.

Having studied Chiropractic in the UK, Dr Angus gained a higher level professional degree and has developed and sold two health practice businesses (both in Australia and the UK.
The success of his Ecommerce business allowed him to spend much of the previous 2 years traveling the world with his family.

Charles Wood

Listing Manager

  • Vetted this business
    This business has been thoroughly examined and approved by our listing manager.
  • Verified the seller
  • Listed this business

Executive Summary

The business is an Australian-based watch repair tool business trading in the US. The business provides high quality, beautifully presented watch repair tools. Aimed at those who enjoy DIY as well as those looking to save money on pricey jewellers fees. These products sell steadily all year round. However, due to the packaging we have invested in developing, they are also a very popular holiday gift.
Class-leading documentation together with outstanding customer service has secured 4.5-star rated listings on Amazon.

The business has gained a reputation for premium watch repair products. This brand positioning has created an exciting opportunity for the right person to expand the product range into what is acknowledged to be a rapidly growing niche (watches, watch accessories and watch repairs). Their products can be bought on on Amazon or their own Shopify site.

Overview

Established Date
2015
Average Monthly Revenue
This number is calculated by taking the average of the 12 revenue data points.
$30,950 USD
Average Monthly Profit
This number is calculated by first calculating the profit for each month from revenue and expenses data points, then taking the average of the 12 profit data points.
$7,929 USD
Overall Margin
This number is calculated by first calculating the total profit from all 12 data points, then dividing by total revenue, then multiplying by 100.
26%

Financials

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Highlights

Strengths

  • Very low time commitment (2-3Hrs/week) 100% on-line business: Freedom to run business from anywhere in the world.
  • Single supplier: Fluent in English and very easy to work with.
  • Non-perishable, non-electric, low-maintenance inventory.
  • Strong branding in a niche of mostly generic products.
  • First private label product type on Amazon
  • Products tolerate premium pricing.
  • Registered Trademark for brand name, logo & documentation.
  • 4.5-star product ratings.
  • 99% positive Seller Feedback in the last 12 months (320 ratings).
  • Small light-weight products keep storage and shipping fees low.
  • 50-90% sales volume increase throughout holiday season (Nov – Mar).
  • Manufacturing orders already placed for holiday season.

Opportunitites

  • Restock dormant listings. Combined, this is an additional $1,000 profit /mth.
  • Renegotiate lower production costs (which hasn’t been done in over two years). Or seek quotes from other suppliers.
  • Initiate Facebook / Google advertising to off-Amazon store (already set up on Shopify).
  • Expand product range with other high margin Watch accessories, * Watch storage/display cases, Watch winders, Watches, Straps/Bands & Tools. All of which will fit well under this brand.
  • Expand into different Amazon marketplaces (UK, Germany, Japan, etc).
  • Optimize Amazon Sponsored Ads. Increased Ad spend represents a significant source of increased costs and therefore lost profits.
  • Re-launch secondary product to achieve better ranking / profits.
  • Use professional images on listings to better represent products.

Operations

Administration

  • Customer support: (10mins/day); Approx 6 tickets per week. This could be outsourced. Some are about minor product defects (for which we typically provide a partial refund). Other questions relate to product usage and congratulating us on our “old fashioned” customer service values.
  • Supplier / Shipper Communications: (15mins/day). Sourcing of the products is complete. Products just need ordering in line with sales projections. The products are manufactured in China and have a manufacturing time of four weeks. Air or sea shipment is then possible.
  • General Administration (10mins/day); Checking for reviews, admin, etc)
  • Content generation & Social Media: (0mins/day). No content and very little social media effort has been made so far.

Fulfilment

  • Fulfilment: All orders are fulfilled by Amazon. We send a 3 email sequence to customers to provide a tracking number, warranty and our contact details.
  • FBA Prep: All products have the FNSKU barcodes already on the packaging or are applied to the outer plastic bag by the supplier.
  • Generally shipping is done by sea (other than if running short). A full pallet of stock can be stored for $50/mth before sending to FBA.

Marketing

  • Marketing: (0hr/week). No recent marketing has been completed.

Business Development

  • Business Development: (0hr/week). No recent business development has been completed.

Customers

Customer Profile:

  • Geography: 99% of customers are from the USA. Most other world countries have been represented by buyers, demonstrating a desire worldwide for these products. The typical age of customers is between 35-65 yrs old.
  • Gender: 40% female and 60% male.
  • Buyer Type: Watch enthusiasts/collectors (60%), DIY enthusiasts (25%), Remotely located people 10%). Gift buyers (5-80% depending upon the time of year).

Customer Acquisition

  • Amazon Sponsored Ads: Average monthly ACOS = 27%. (Should be lower with optimization).
  • Occasional Facebook boosted posts to advertise special offers (Fathers Day, Flash sale’s, etc) representing a very small portion of advertising costs.

Customer retention

  • 4% of customers are repeat buyers.
  • We currently do not re-market to our customers due to the limited product range.

Seller Notes

Reason For Sale:

Greater aspirations! The growth of this brand has been modest due to the lack of expanding into new Amazon marketplaces. Additionally, choosing to withdraw profits rather than reinvest into a broader range of products has slowed growth potential.

The vendor is selling the business before the approaching holiday season to benefit the new owner with the high seasonal sales velocity and profits these products enjoy (Nov March).

Specific Skills Needed:

No specific skills are necessary to run this business. Having changed a watch band or battery previously is of some benefit. The seller has no watch fixing background. Reading the product documentation will acquaint anyone with the ability to understand any customer queries.

Post-sale support:

1 month of post-sale support will be provided to familiarise the new owner with procedures, suppliers, etc).

Trademark

The copyright / trademark registration includes the logo, the name and the documentation images/copy. This is transferable.

Import duty

Donald Trump’s trade tariffs now include tools and tool sets. They represent a 10% increase in import duty to 13.9%, which equates to $0.695 per item.
We actually see this as a good thing as it will drive out other Sellers who don’t charge premium prices from this niche.

Attachments

Assets

  • Shopify Storefront
  • Social Pages
  • All associated domains
  • FBA storefront
  • Brand Trademarks