SOLD: Dropship Furniture Business Making $20,600 Net Profit Per Month

NOTICE: This website has been SOLD and is no longer available to purchase. We invite you to...


Up for sale is a highly profitable and upward-trending online furniture business that has averaged $196,721 in monthly gross revenue and $20,632 in monthly net profit in 2017. The business is 100% drop-shipping based, so there's no need to pre-purchase and stock inventory or ship out orders. Approximately 70% of total revenue is derived from high-ticket Business-to-Business (B2B) sales, with the remaining 30% of revenue coming from lower-ticket sales to households/individuals. The business has a robust 10.5% net profit margin (revenue minus all expenses) and shows a strong positive growth trend over the past four years, as you can see in the graph to the right. (Note: You will see that sales are somewhat seasonal, with revenues peaking in spring/summer each year.) The current owners​ (a husband and wife, both of whom are long-term members of Store Coach) are selling the business because they'd like to pursue more "artistic" business ventures, which is where their passions lie (the husband is a photographer, and the wife is a graphic designer and painter).

BUSINESS HIGHLIGHTS

  • Niche: Furniture (more details will be shared after you sign the NDA)
  • Store Model: 100% drop-shipping (~70% B2B and ~30% B2C)
  • Business Age: Started in December 2012 (5 yrs old)
  • Sales Channels: Two websites (one primarily targeting B2B customers, and the other primarily targeting households/individuals)
  • P&L Period: January - December 2017 (Note: The December figures are projections based on month-to-date sales, historical averages, and contracts/sales currently in the works. December figures will be finalized & the listing will be updated in mid-January 2018.)
  • Avg. Monthly Gross Revenue: $196,721/month
  • Gross Profit Margin (after COGS): 20.0%
  • Net Profit Margin (after ALL expenses): 10.5%
  • Avg. Monthly Net Profit: $20,632/month
  • 2017 Total Net Profit: $247,589

ASKING PRICE: $740,000

The seller's asking price for the business is $740,000, which is based on an annual earnings multiplier of just 3.00 (as you can see below)...

January - December* 2017 Net Profit: $247,589 x 3.00 Annual Earnings Multiplier: $742,766 Rounded Down to: $740,000

B​usiness Overview

This online business was established in December 2012, making it right around 5 years old. Approximately 70% of its revenues come from business customers (i.e. B2B sales), with the Average Order Value (AOV) being several thousand dollars. (Some of the larger orders over the past couple years have been as big as $50,000 - $100,000.) The current owners have developed an amazing process — what they believe to be the best in the industry — for generating business leads and then closing a high percentage of those leads. The nitty-gritty details about the process they've developed will of course be shared with the eventual buyer, and the owners will provide step-by-step training (as well as written "Policies & Procedures") on this process as part of the sale. The remaining 30% or so of revenue is derived from sales to private households and individual consumers (i.e. B2C sales). The business includes two websites: one that targets businesses and one that targets private consumers. Of course, the site targeting households/individuals introduces the B2B website, which leads to a significant amount of business leads. Over the past few years, the business has established ongoing relationships with over 900 B2B clients. Thanks to the amazing experience almost every customer has with their first purchase, it's very common for those businesses to come back again for replacement products and new projects. Many of the business clients are "chain" and "franchise" businesses with dozens or even hundreds of locations, so it's not unusual for businesses to return over and over again when they open up a new location. The B2B potential is enormous, and the owners feel like they've barely scratched the surface of its potential. The business has over 300 drop-ship suppliers offering thousands of SKUs (approximately 14,000 products between the two sites), but the owners have 20-30 main suppliers they use most frequently. They have excellent relationships with all of their suppliers. Because 100% of the products/orders are "drop-shipped" (i.e. shipped from the manufacturer's (or wholesaler distributor's) warehouse directly to the customer), there is no need for a large sum of working capital to pre-purchase inventory that may not sell for months or years (or ever)! You also don't need a large warehouse to stock products, nor do you need to deal with fulfilling and shipping orders yourself. With the drop-ship model, you can focus on generating leads & sales and leave 100% of the fulfillment and shipping tasks in the hands of the suppliers. In addition to the owners (husband and wife), the business has three full-time independent contractors (all of whom are Americans living in the USA, working from home in the same metropolitan area). They are all well-trained, very talented, and help the business run smoothly and efficiently. Because of their knowledge, experience and dedication, the owners believe they would be a great asset for the new buyer. The contractors would definitely love to stay on after the sale of the company, ensuring a smooth transition and continued success of the business.

P&L ​and Financial Information

Here is the detailed P&L for the period January - December 2017. Click on the image to view a larger version of it in a new tab.

* The figures for the month of December are projections based on a) month-to-date sales (as of the date this listing was created), b) contracts/sales currently in the works, and c) historical averages. The actual figures for December will likely differ slightly from the figures shown in the P&L above. Once the December books are finalized and closed, we will update this listing to reflect the actual figures for December. Please note that the three line items in the 'Cost of Goods Sold' section of the P&L (i.e. 'Product Costs', 'Shipping Expenses' and 'Credit Card Processing Fees') have all been "standardized" over the 12-month period to eliminate the impact of the timing of when supplier invoices and shipping charges are paid. In an effort to show expenses in the same month as the associated revenue, the P&L above was prepared by first tallying the 12-month total for each of those three expense categories, then calculating the ratio of each expense as a percentage of total annual revenue, and then applying that percentage to the monthly revenue for each of the 12 months. (For example, total 'Products Costs' for the entire 12-month period was $1,720,007, which is 72.8614% of total annual revenue of $2,360,655. Thus, the 'Product Costs' figure for each of the 12 months was calculated as 72.8614% of revenue that month.) Following are a few of the key numbers from the above P&L...

  • Total 2017 Revenue: $2,360,655
  • Avg. Monthly Revenue: $196,721
  • Cost of Goods Sold Percentage: 80.0% of revenue
  • Gross Profit Margin: 20.0% of revenue
  • Other Expenses: 9.5% of revenue
  • Net Profit Margin: 10.5% of revenue
  • Total 2017 Net Profit: $247,639
  • Avg. Monthly Net Profit: $20,636

The current owners will of course give the eventual buyer the opportunity to conduct extensive due diligence to verify the accuracy of all figures in the P&L. This will include doing live "screen-share" web meetings to log into the store admin panel, bank and merchant accounts, and so on to review and confirm all figures. The following chart shows the business' monthly gross revenue over the past four years (January 2014 - December 2017), indicated by the green line in the chart. (The orange line represents the overall trend line, removing the monthly volatility causes by seasonality and other factors.)

Revenues over the past four years have been:

  • 2014: $222,685
  • 2015: $785,583 (an increase of $562,898 over 2014)
  • 2016: $1,551,393 (an increase of $765,810 over 2015)
  • 2017: $2,360,655 (an increase of $809,262 over 2016)

This business is clearly trending upward, as revenues have increased by a larger and larger amount every year of the business' existence. Based on the growth pattern over the past four years, it's not unreasonable (and it's probably even conservative!) to expect revenues to exceed $3,000,000 in 2018 and to reach $5,000,000 by 2020.

A​bout the Products & S​uppliers

Over the past five years, the business has established reseller accounts (i.e. dealer accounts) with over 300 manufacturers and wholesalers of the types of furniture the business sells. Between the B2B site and the B2C site, there are currently over 14,000 product SKUs available. While this large catalog is great for private B2C consumers and gives buyers a wide selection of styles, materials and colors to choose from, the huge catalog is especially valuable for B2B sales. It enables the business to source just about every product (of this kind) available on the market, giving the business a significant advantage over other retailers who only offer products from some of these manufacturers. Additionally, the business has established a great relationship with a custom furniture builder who specializes in metal and wood furniture. He is extremely talented craftsman and produces high-quality custom furniture for a very reasonable price. So if a business customer (planning to place a large bulk order) isn't in love with any of the stock furniture available from any of the manufacturers and wants something custom built, the business is able to work with this custom builder (who is located in the United States) to put together a custom quote that is both attractive to the business customer and has healthy margins for the business. Because 100% of the products/orders are "drop-shipped" (i.e. shipped from the supplier's warehouse directly to the customer), you will not need a large sum of working capital to pre-purchase inventory OR a large warehouse to hold inventory OR warehouse employees to pack and ship out orders. With the drop-ship model, when an order comes in from a customer, you simply forward the order information to the applicable supplier(s), and the supplier(s) then ship the products directly to your customer. In addition to being the easiest store model and eliminating the need for working capital, a warehouse, and a shipping staff, the drop-ship store model allows you to focus your time and efforts on generating leads and making sales (instead of worrying about inventory management and shipping logistics). Note: The seller is confident that there will not be any issues with transferring the supplier accounts to the new owner. In most cases, the new owner will be able to simply "take over" the existing accounts and just update contact details and billing information. In some cases, though, the supplier may require the new owner to set up a new reseller account, but the seller will be happy to facilitate that process (making introductions and assisting with the account set-up process, as necessary) and has the utmost confidence the new owner will get the exact same pricing and terms the business is currently getting.

Rankings and Traffic

The B2C site (which was established in December 2012) has A LOT of Page 1 rankings and consequently gets A LOT of free, organic traffic. Not only does this free traffic result in a lot of B2C sales (to individuals/households), but it also generates a lot of leads for the B2B side of the business (which tends to be much more lucrative since businesses purchase in much larger quantities). The following table lists the number of keyword phrases and the combined monthly search volume (Google.com USA - exact match) for those keyword phrases for each range of rankings. For example, the first row of data is saying that the site ranks in the top 3 in Google.com (i.e. position #1, #2 or #3) for 16 different keyword phrases, and that those 16 keyword phrases combined are searched for 720 times per month on Google.com. All data is pulled from SEMrush.com reports.

Google Rank # of Keyword Phrases Combined # of Monthly Searches
1 - 3 16 720
4 - 6 37 2,090
7 - 10 70 4,850
11 - 15 62 7,070
16 - 20 69 16,340
21 - 30 123 18,540

The B2B website, which was only established about a year ago, primarily gets traffic from PPC ads. It does have a few rankings, however... 3 Page-1 rankings searched 200 times/month (combined), 5 Page-2 rankings searched 650 times/month, and 11 Page-3 rankings searched 770 times/month.

Business Operations

Over the years, the owners developed systems and processes that make this growing business quite easy to manage. A key component to the business' success is the software and technology the business uses. The owners have invested a good amount of time and resources to developing (and customizing) a Content Management System (CMS) for managing leads and orders - particularly large B2B orders. In fact, almost half of the 'Website & Internet Expenses' costs you see in the P&L for 2017 are related to upgrades and customizations made to the CMS. (In most years moving forward, this line item in the P&L will likely be much lower.) Between the two of them (combined), the owners currently spend about 40 hours per week overseeing business operations. As is customary for eCommerce website listings, "salaries" and distributions to the owners (who are husband and wife) are not included in the P&L. However, all payments to non-owner employees and independent contractors are deducted as expenses in the P&L (they're reflected in the 'Contract Labor' line item). As mentioned above, the business has three full-time independent contractors (besides the owners). These three individuals all work from home and are located in the same metropolitan area in the United States. They're well-trained, dedicated workers who do their jobs well and contribute to the success and profitability of the business. All three of them would be happy to stay on long-term after the sale of the business.

G​rowth Opportunities

  • Expand the B2B lead generation efforts - For the benefit of the eventual buyer, the owners have chosen not to publicly disclose the details about the techniques they're using to generate leads for large B2B orders and close those leads at such a high rate. Suffice it to say that the business has barely scratched the surface of what could be done in this area. The owners are currently in the process of greatly expanding the B2B lead generation system and will of course give the new owner everything he or she will need to continue expanding it.
  • Exhibit at national and regional trade shows - The owners exhibited at a national trade show this past May and were able to collect over 300 high-value B2B leads, many of which have already converted into large contracts. This was the first year they exhibited at a trade show. The new owner would likely want to continue exhibiting at both national and regional trade shows, of which there are many for this industry. Also, becoming more active in relevant trade organizations would be a great way to make contacts and form new business relationships. (Note: Now that the current owners have exhibited at a trade show, they have both the materials you'll need for future trade shows and, more importantly, hands-on experience exhibiting at a trade show. They'll be able to share all kinds of tips and tricks for making trade shows worthwhile and profitable.
  • Start marketing through Facebook - Up to this point, the owners have only used traditional Pay-Per-Click (PPC) marketing through Google AdWords and Bing to drive traffic to the sites. They've been intending to launch interest-based Facebook ads for several months now, but just haven't had the time to learn the interface and launch some Facebook campaigns. The owners are confident that "pairing" the power of ultra-targeted Facebook campaigns with their unique B2B lead generation techniques could yield great results. This is an opportunity the new owner will want to pursue.
  • Do a better job re-marketing to past buyers - The current owners admit that they haven't done a very good job using their customer list to generate repeat business. That's not to say they haven't had repeat orders from past customers. On the contrary, there have been many customers (particularly businesses) that had such a great experience with their initial purchase that they come back later and place additional orders. But they've primarily just come back on their own, not because they were encouraged or invited to come back. The new owners will want to do a better job with sending out regularly (i.e. at least monthly) newsletters to stay in constant contact with past customers and keep the business in their minds.
  • Optimize PPC campaigns & increase ad spend - The owners have been so busy this last year that they've largely ignored the Google and Bing PPC campaigns and just kind of let them ride. By taking the time to optimize the PPC campaigns (and focusing more on the search ads and product ads that drive the majority of the B2B inquiries), you could increase the Return On Ad Spend (ROAS) and boost sales sales. Over the past year, the owners haven't pressed the gas on ad spend because they've had more business than they were equipped to handle (particularly during the busy months). But they're confident that they haven't come close to hitting the ceiling on what they could be spending and getting a positive ROI.

​Included with the Sale

  • The two domain names and websites (including all textual and graphical content)
  • All intellectual property associated with the business
  • All supplier and vendor accounts
  • The Content Management System (CMS) for running the business
  • Mailing list (containing over 900 B2B and over 800 B2C past customers and opted-in subscribers)
  • All social profile accounts​ (Facebook, Pinterest, etc.)​
  • ​90 days​​ of support to train you​ and/or ​your employee​(s)​ on how to run the business, ​place orders with suppliers, market the websites, etc. (first 50 hours via phone or live webinar/screen share, then Skype/email support after that)
  • Written 'Policies and Procedures' for operating the business
  • ​Note​​: The sellers will certainly sign a non-compete as part of the Contract of Sale.

​Buying Process

You can make an offer for this highly profitable online business here. (Note: The current owners are only interested in ​full-cash offers​​. Please do not contact us about buy-out arrangements, installment payments or other "creative" purchase arrangements.) If the sellers accept 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, a ​​7-day 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 7-day 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 panels, bank and merchant accounts, sales reports, traffic reports, supplier invoices, etc. We'll also send you the Contract of Sale agreement for you to review. Once the Contract of Sale is signed and the sale is completed, we will​ a)​ update this page to let other interested parties know that the sale has been finalized and ​b) ​remove this listing from the Store Coach Website Marketplace.

​Option to "Buy and Outsource"

If you're interested in acquiring this business (either on your own OR as part of a group) but don't have the time, desire or know-how to handle the day-to-day operations yourself, use the Ask a Question box below to learn how you can outsource 100% of the day-to-day operations to a full-service eCommerce operations company affiliated with Store Coach for a very reasonable operating fee​. This allows you to reap the financial benefits of owning (or co-owning) a "cash cow" Internet business like this without having to operate it yourself. By outsourcing 100% of the day-to-day operations, you can own (or co-own) this business completely passively.

NOTICE: This website has been SOLD and is no longer available to purchase. We invite you to...


Disclaimer: Store Coach, Inc. is acting as the broker of the sale of this website/business. The website/business owner is 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 owner.

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