FOR SALE: 4.5 Year Old Outdoor Sports/Recreation Products Dropship Store

Up for sale is a 100% dropshipping-based eCommerce store that is 4.5 years old and is averaging $10,011 net profit per month over the past 6 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 106 orders per month (an average of just over 3.5 order per day) and has an Average Order Value (AOV) of $1,541. The average profit per order is right around $180, giving you A LOT of room for paid advertising.

The site has an amazing rating with ShopperApproved, a Google-approved third-party merchant review program. After over 400 reviews, the site has a stellar 4.7-star rating, which gives visitors a lot of assurance that they are buying from a reputable company.

This business is priced to sell fast, with the $180,000 asking price being based on a low 2.5x annual earnings multiple. The owner is selling the site as part of his regular flipping strategy. He regularly buys underperforming websites, overhauls them, gets them to the point they're generating 5-figure monthly profits, and sells them (then moves on to the next opportunity). He acquired this site in January 2020 (though it was originally built in February 2016) and planned from the outset to sell the store once it was consistently averaging $10k+ net profit per month.

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KEY INFORMATION

  • Niche: Outdoor sports/recreation (sign NDA for more information)
  • Inventory Model: 100% drop-shipping
  • Business/Website Age: 4.5 years (started in Feb 2016)
  • P&L Period: March - August 2020 (trailing 6 months)
  • Avg Monthly Revenue: $152,595/month
  • Avg Monthly Net Profit: $10,011/month
  • Avg Orders Per Month (Day): 106/month (3.5/day)
  • Avg Order Value (AOV): $1,541
  • Avg Gross Profit Per Order: $179
  • Weekly Time Requirement: 20-25 hours (4-5 hours/day)

ASKING PRICE: $180,000

This store is priced to sell FAST! The seller's asking price for this store is $180,000, calculated as follows...

March - August 2020 (6 Months) Net Profit from P&L: $60,063
Add: Estimated Profit in Slower Months* ($2,000/mo x 6 months): $12,000
Total 12-Month Net Profit: ~$72,000
x 2.5x Annual Earnings Multiplier: $180,000

* Estimated Profit in Slower Months: This is extremely conservative to estimate a mere $2,000 net profit per month in the other 6 months of the year. In all likelihood, the store will probably average more like $3-4k per month in net profit during the other 6 months of the year.

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P&L AND FINANCIAL INFORMATION

Here's the P&L for the most recent 6 months (March - August 2020). Click on the image to see the full-size image in a new tab.

P&L Statement (Mar - Aug 2020)

You'll notice that ad spend was very low in March and April ($1,041 and $1,404, respectively), as the owner was still in the middle of overhauling the site and its catalog. He ramped up ad spend quite a bit in May ($6,510) and then further in June ($11,032). March (and April to a lesser extent) isn't all that representative of the current profitability and value of the site, but it's still included in the 6-month P&L period (which is nice for you, the potential buyer, as it reduces the asking price).

Here's a quick summary of the key numbers from the P&L...

  • Avg. Monthly Revenue: $152,595
  • Avg. Monthly Cost of Goods Sold: $134,916
  • Avg. Monthly Gross Profit (after COGS & shipping): 17,679% of revenue
  • Avg. Monthly Net Profit (after all expenses): $10,011

On average, the store makes about 106 orders per month (which is ~3.5 orders 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 $1,541 of revenue (the AOV is $1,540) and right around $179 of gross profit (after paying for Cost of Goods Sold, including shipping & delivery).

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 are screenshots of 1) the "Finances Summary" report from Shopify and 2) the "Ecommerce Overview" report from Google Analytics that verify the revenue figure...

Shopify Finances Summary (Mar - Aug 2020)

GA Ecommerce Summary (Mar - Aug 2020)

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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 60 total products) and is very easy to manage. The business has accounts with 3 suppliers, and the seller has verified that all 3 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).

Google Trends 5-Year Report

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MARKETING AND TRAFFIC

Here is the Google Analytics "Acquisition Overview" report for the 6-month period March - August 2020...

GA Acquisition Overview Report

The traffic breakdown over the past 6 months is as follows:

  • Paid Search - 78.5%
  • Organic Search - 7.7%
  • Direct - 5.3%
  • Social - 4.1%
  • Display - 3.6%
  • Referral - 0.8%

While the owner hasn't really focused on SEO (other than having a lot of well-written, 100% unique content on the home page, category 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
#1 24
950
#2-3
16 540
#4-5
31
1,730
#6-10
104 10,920
#11-20
114
11,180
#21-30
116
11,640

In summary, the site has:

  • A total of 40 "top 3" rankings (with a collective 1,490 searches per month)
  • A total of 71 "top 5" rankings (3,220 searches/month)
  • A total of 175 "top 10" rankings (14,140 searches/month)

Here's a screenshot of the 'Audience Overview' report from Google Analytics for the past six months.

GA Audience Overview Report

In addition to the country-by-country visitor breakdown (which shows that 96.6% of visitors are in the USA), you'll notice that the site has averaged 1.54 sessions per user, which is very impressive. That means that over half of the site's visitors come back and visit the site a 2nd time.

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STORE OPERATIONS

The current owner currently spends approximately 4-5 hours per day 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 3 supplier accounts
  • All social profile accounts
  • Mailing list (containing over 3,200 past customers and opted-in subscribers)
  • ShopperApproved account (which has a 4.7-star rating after 400+ reviews)
  • Signing a non-compete agreement
  • Free Store Coach Pro membership (a $2,000 value)
  • 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)

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BUYING PROCESS

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

Please note that until you electronically sign the NDA, we will not disclose the domain name of the website or other confidential information.

   

SUBMIT OFFER OR INQUIRY


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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.

  

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