Facts and Figures
This business is an e-commerce business focused on re-selling products from a brand. Products are purchased directly from the manufacturer and re-sold on the website.
The business is built on the Shopify platform and has 27 SKU’s currently listed for sale. In addition to the Shopify store, the business has an email list of over 66,000 subscribers, as well as social media accounts with over 50,000 followers. Additionally, the Sellers have spent over $280,000 on paid advertising on Facebook, and the account containing all the advertising data will be given to the new buyer.
The business has strong profit margins, with historical net profit averaging 42%. Additionally, cost-per-click (CPC) for this industry is very low at an average CPC of $0.30. Through a combination of a high conversion rate (2.14% avg.), low cost-per-click, and high margins, this business has consistently driven sales through paid advertising.
The Sellers of this business are looking to exit their investment as they focus on developing a branded, physical product for the tech industry. Their new venture is unrelated to this business and the Sellers are willing to sign non-competes if desired by the new owner.
● Customer support (4 hrs/wk); This business typically obtains about 10-15 service inquiries a day. The owner takes this as a chance to make customers advocates of the brand by delivering high quality and personalized answers/solutions.
● Planning and purchasing new inventory (0,5 hrs/wk); Since the business buys straight from the supplier, the business has to plan accordingly for product demand. The supplier has no order minimums, fulfills orders quickly and has a good relationship with the business.
● Fulfilment: (10hr/week) All orders are self-fulfilled by one of the owners. However, the buyer of the business can utilize a third-party fulfillment firm to dramatically cut down the hours spent on the business a week.
● Marketing: (3hr/week). Sending out email promotions to their email list. Also, the business utilizes Facebook, Instagram, and Google ad campaigns for marketing.
Customer Profile and Segmentation
The business has diversified geographical revenues with over 100 countries with orders throughout the lifetime of the business. 56% of their customers are from the US, 5% from Australia and 4% from the UK.
Customer are retained by advertising on FaceBook and Instagram, as well as sending out promotion via a mailing list. The mailing list currently has 66,000+ active subscribers. This business has a returning customer rate of 17.42% over the last 12 months.
● Strong gross and net profit margins
● High Conversion Rate
● Inexpensive CPC advertising
● Huge targeted email list
● Significant ad spend data
● Increasing ad spend
● Selling product bundles (and new products)
● Optimizing email marketing
● Diversifying products
● Search Engine Optimization
Over the last year, the owners’ of the business has stopped spending money on ads substantially because they are focusing on another business venture. This explains the dip in profitability. However, they have started to focus more on this business to leave it in better hands to the buyer. The seller has agreed to help the new owner transition the business for a month. Also, the seller has agreed to sign a non-compete if the buyer wants them to do so.
- Social Media Accounts
- Over 66k subscribers
- Domain and Website
- Shopify Store
About the Seller
SaleAway is an online business brokerage focusing on websites and online businesses worth approx. $50k-$3mm+. SaleAway was founded after 3 individuals with strong financial backgrounds decided to combine their two passions: online business and buy-side/sell-side finance.