FOR SALE: 6.5-Year-Old Outdoor Sports/Recreation Products Dropship Store
Up for sale is a 100% dropshipping-based eCommerce store that is 6.5 years old and has generated about $24.1k net profit over the past 12 months. The store sells a specific product line within the outdoor sports/recreation niche (please submit the NDA below to get more information about the product line & website name).
The store averages about 18 orders per month and has an Average Order Value (AOV) of $2,255. The average profit per order is right around $287, giving you A LOT of room for paid advertising.
After about 680 reviews, the site has an impressive 4.7-star rating with Shopper Approved, a Google-approved third-party merchant review program. This gives visitors a lot of assurance that they are buying from a reputable company.
This business is priced to sell fast, with the $60,000 asking price being based on a very modest 2.5x annual earnings multiple. The owner is selling the site because his new full-time job requires all of his time.
Now is the perfect time to buy this business as pandemic-related supply chain issues have limited sales and depressed net profit (upon which the asking price is based) over the past couple of years. Many products have been out of stock and/or had long lead times due to the pandemic, which has hurt the store's conversion rate and weakened sales. Prior to the pandemic, the store made substantially more sales with less traffic than it gets now. As supply chains normalize over the coming months and products are regularly in stock again, sales and profits will likely increase back to previous levels. This makes now the perfect time to buy the site when its asking price is low (since the asking price is based on the Trailing Twelve Month's net profit).
- Niche: Outdoor sports/recreation (sign NDA for more information)
- Inventory Model: 100% drop-shipping (no inventory)
- Business/Website Age: 6.5 years (started in Feb 2016)
P&L Period: July 2021 - June 2022 (trailing 12 months)
- Avg Monthly Revenue: $41,704/month
- Avg Monthly Net Profit: $2,008/month
- Avg Orders Per Month: ~18/month
- Avg Order Value (AOV): $2,255
- Avg Gross Profit Per Order: $287
- Google Top 3 Rankings: 79 keywords (10,000 monthly searches)
- Google Page 1 Rankings: 300 keywords (50,240 monthly searches)
- Supplier Accounts: 4 (all transferable)
- Weekly Time Requirement: 15-20 hours
ASKING PRICE: $60,000
This store is priced to sell FAST! The seller's asking price for this store is $60,000, calculated as follows...
July 2021 - June 2022 (12 Months) Net Profit from P&L: $24,093
x 2.5x Annual Earnings Multiplier: $60,233
Rounded Down To: $60,000
P&L AND FINANCIAL INFORMATION
Here's the P&L for the most recent 12 months (July 2021 - June 2022). Click on the image to see the full-size image in a new tab.
Here's a quick summary of the key numbers from the P&L...
- Avg. Monthly Revenue: $41,704
- Avg. Monthly Cost of Goods Sold: $36,099
- Avg. Monthly Gross Profit (after COGS, shipping & merchant fees): 13.44% of revenue
- Avg. Monthly Net Profit (after all expenses): $2,008
On average, the store makes about 18 orders per month (which is ~0.6 per day), so there aren't all that many orders that need to be fulfilled. That's the beauty of having a store where the average order brings in $2,255 of revenue (the AOV is $2,255) and right around $287 of gross profit (after paying for Cost of Goods Sold, including shipping & delivery, and merchant fees).
The current owner will of course give the eventual buyer the opportunity to conduct extensive due diligence to verify all financial information (including "live" screen-share meetings to go into the Shopify admin panel, Google Analytics, payment/merchant accounts, advertising accounts, etc.) But here is a screenshot of the "Ecommerce Overview" report from Google Analytics to support the revenue figure...
ABOUT THE NICHE & SUPPLIERS
As noted above, the store sells a specific product line of outdoor sports/recreation products. Accordingly, the store performs best in the late spring and summer. For the benefit of the eventual buyer, the specific products the store sells as well as the domain name of the site will only be disclosed to serious potential buyers who first sign an NDA (which you can do electronically here).
The store's catalog is quite small (less than 30 total products) and is very easy to manage. The business has accounts with 4 suppliers, and the seller has verified that all 4 reseller accounts will transfer to the new owner without any problems or changes in pricing/terms.
As mentioned above, this store is 100% drop-shipping based, meaning that the suppliers ship products directly to the customers. This means that you do NOT have to pre-purchase large quantities of inventory, store products in a warehouse, or manually ship out orders yourself. When an order comes in, the supplier ships the order directly to your customer. Dropshipping is hands-down the easiest store model and completely eliminates the need for working capital as well as the risk of not being able to sell large stocks of inventory you've pre-purchased.
Following is a screenshot from Google Trends that shows the search traffic (USA) over the past 5 years for a popular keyword phrase representative of the store's niche. This report clearly shows that the demand for this product line is holding steady over time (with understandable ebbs and flows associated with seasonality).
MARKETING AND TRAFFIC
Here is the Google Analytics "Acquisition Overview" report for the 12-month period July 2021 - June 2022...
The traffic breakdown over the past 12 months is as follows:
- Paid Search - 65.9%
- Organic Search - 20.4%
- Direct - 9.3%
- Social - 2.4%
- Referral - 2.1%
While the owner hasn't really focused on SEO (other than having a lot of well-written, 100% unique content on the home page, collection pages and product pages), the site has still acquired quite a lot of Page 1 rankings and consequently gets a fair amount of free, organic traffic from Google (as well as other search engines). The following table shows Google.com (USA) rankings data per Ahrefs.com as of the listing creation date:
|Rank in Google||# of Keyword Phrases||Combined # of Monthly Searches|
In summary, the site has:
- A total of 79 "top 3" rankings (with a collective 10,000 searches per month)
- A total of 141 "top 5" rankings (17,760 searches/month)
- A total of 300 "top 10" rankings (50,240 searches/month)
Organic rankings and traffic have consistently increased over the past 3 years. Ahrefs.com estimates that the site currently generates as $1,100 worth of free, organic traffic from its keyword rankings every month.
Here's a screenshot of the 'Audience Overview' report from Google Analytics for the past 12 months.
In addition to the country-by-country visitor breakdown (which shows that 92.6% of visitors are in the USA), you'll notice that the site has averaged 1.31 sessions per user, which is very impressive. That means that about 1 in 3 of the site's visitors come back and visit the site a 2nd time.
The current owner currently spends approximately 15-20 hours per week on the business. The majority of this time could very easily be given to a contractor or employee (or even a Virtual Assistant, or VA), as it is very simple customer service and order processing work. The remaining few hours per week is comprised of monitoring/updating the ads, bookkeeping/accounting, catalog/stock management and other administrative tasks.
As part of the sale, the current owner will train the buyer on all aspects of running the business. This will include 20 hours of "live" training (via web meeting, Skype, phone, etc.) as well as 30 days of email support.
INCLUDED WITH THE SALE
The sale includes all of the following...
- The domain name and website (including all textual and graphical content)
- All 4 supplier accounts
- All social profile accounts
- All customer lists and email lists
- Shopper Approved account (which has a 4.7-star rating after ~680 reviews)
- Signing a non-compete agreement
- 30 days of support to train you/your employee on how to run the business, place orders with suppliers, manage advertising campaigns, maintain the store, etc. (first 20 hours via phone or live webinar/screen share, then Skype/email support after that)
You can make an offer for this highly profitable online business here. If the seller accepts your offer, we'll notify you immediately and update this page to let other interested parties know that an offer has been accepted and the sale is pending.
Once your offer is accepted, the official due diligence period will begin, during which time other interested parties may place a "back-up offer" in case the sale falls through for whatever reason. (Please note that if one of the back-up offers exceeds the original accepted offer, the seller is obligated to sell to the original buyer whose offer was already accepted. The seller can't back out of the accepted offer just because a higher offer was later made.)
During this due diligence period, we'll work closely with you and with the seller to help you complete due diligence. Among other things, this will include doing one or more live screen-share web conference meeting(s) so you can verify all financial information by reviewing the store admin panel, bank and merchant accounts, sales reports, Google Analytics traffic reports, supplier invoices, etc. We'll also send you the Asset Purchase Agreement (APA) for you to review. Once the APA is signed and the sale is completed, we will 1) update this page to let other interested parties know that the sale has been finalized and 2) remove this listing from the Store Coach Website Marketplace.
SIGN NDA & GET MORE INFO
ASK A QUESTION
Have a Profitable Online Business You're Thinking of Selling?
Net more and pay less with Store Store Coach's professional website brokering service. Our listings are better, our fees are lower, and all Store Coach Marketplace listings are now published on Flippa.com and BizBuySell.com as well (for no additional cost)! Click here to get more information and to request a zero-obligation free business valuation.
Disclaimer: Store Coach, Inc. is acting as the broker of the sale of this website/business. The website/business owners are solely responsible for all figures, statements, claims and information provided on this page as well as all figures, statements, claims and information which may be provided to interested parties during the due diligence process. It is the responsibility of the eventual buyer to review and verify all figures, statements, claims and information provided by the website/business owners.