Flippa
For Sale

Private Listing

Business Model
e-Commerce
Industry
Food and Drink

$150,000

Asking Price

Facts and Figures

Location
-
Date of Founding
2015
Full-Time Staff
-
Avg. Expenses /month
$86,258
Avg. Revenue /month
$92,403

Business Description

Offer End Date – November 1st
All serious and financially qualified individuals who have executed the NDA and downloaded the prospectus are encouraged to submit their best offer by November 1st.

This Ecommerce store taps into the $60B market of water filtration and water dispensers, primarily fueled by trends in health, green and a growing concern around water quality — especially lead poisoning.

With no prior Ecommerce experience and only $2K in the bank, the founder quickly grew this to a 7-figure revenue business, acquiring standout customers such as NASA, Progressive Insurance, and Dartmouth College.

Since 2017, the business has remained on autopilot, with very low operating expenses, all while seeing NET profit steadily increase. Rather than keeping the business passive, the owner is ready to move on and fully invest in his other passions. He maintains a strong relationship with his supplier and hopes to find a buyer passionate enough to grow the business to unsurpassed heights.

The new owner will assume control of the entire website and all contents within (email addresses, phone numbers, etc), as well as the business’s roll of 89 registered users, an email list of 656 subscribers, and a full customer database with all transactional data.

No social media accounts exist, except for an under-utilized Google+ account, ready to be resurrected.

While there are no live, third party marketplace accounts (selling on Amazon was a goal but never materialized), the business has been approved to sell in Walmart’s online marketplace (the current owners have yet to commence).

The current owners have devised personalized lead-generation alert systems (via email) that provide the team with potential prospects.

There are also policy and procedure documents included, intended to aid the new owner in the successful continuation of business operations, including onboarding new employees, if so desired.

Operations

Approximately 4 hours of (owner's) work per week are necessary to maintain business as usual, with the bulk of the labor stemming from interns (who put in approximately 6 hours per week answering the phones, generating custom quotes, sending purchase orders to suppliers, etc).

It should be noted that this business requires someone being "on call" during normal business hours to deal with incoming orders, inquiries and customer service pings via phone calls, email and live chat.

A virtual assistant is responsible for shipment tracking, data entry, and other miscellaneous projects. The recommendation is for this person to stay on board to assist the new owner, at approximately 5 hours per week, at an average spend of $90/month.

Lastly, it’s important to note that the owner has been treating this business as a side project, so a prospective buyer should take into consideration the amount of hours it takes to maintain (which is currently what the owner feels is being allotted), versus hours it may take to truly accelerate growth.

Customers

Since inception, the business has had stable operating expenses, while seeing net profit increase year on year. This also means that very little has been invested in marketing, sales, product development, etc --leaving room for the new owner to foster more growth. Prospective buyers may also appreciate the heavy cashflow-nature of this business, as well as the bypassing of third party retailers.

Highlights

Strengths:

● Business is achieving solid YoY growth

● Major untapped growth opportunities

● Simple fulfillment process

● Lean operations

● Significant B2B customer list

● Cash-flow friendly

● Motivated Seller

Opportunities:

● The business has performed very little on-site SEO; off-site SEO has yet to be conducted

● As of yet, no display advertising (AdSense, Facebook, Instagram, etc) has been enacted

● Google Adwords is driving a lot of new customers, and cutting the cost to acquire new customers by over 30%; an increase in spend is recommended and could correlate with an increase in revenue

● Essentially non-existent social media presence

● Installation / Maintenance referral service, while tested, has yet to be utilized. Estimated to double profits if only 10% of customers subscribed.

● Recurring customers account for over 20% of business; focusing on retention and retargeting is recommended.

Seller Notes

Additional notes:
- Average order size has increased by 32.3% (bulk orders are better deals with lower margins)
- Free Shipping offers have helped with customer acquisition
- The business charged for shipping in 2018, helping margins increase
- Fluctuations in performance mirror slight seasonality, namely winter and summer break
- The returning customer rate of 23% is an increase of 2.5x from last year
- The cost necessary to acquire a new customer has decreased from uptick in repeat customers and Organic SEO rankings

Assets

  • Domain and website

About the Seller

Private Seller

DealFlow Brokerage

United states

Dealflow Brokerage, a premium end-to-end M&A Advisory firm which helps entrepreneurs buy and sell high-value web companies. In the five years since it launched, Dealflow has facilitated more than $43 million in sales.

Contact Seller