FOR SALE: Anti-Glare Products Multi-Channel Ecommerce Business (40% YOY Revenue Growth)
Averaging $2,289 Net Profit / Mo
Up for sale is a well-established, highly profitable multi-channel eCommerce business that experienced 40% revenue growth from 2018 to 2019 and has an amazing 42.8% net profit margin. The business was established in 2005 (making it 15 years old) and sells its own private label brand of various anti-glare products used primarily in cars, motorcycles and boats, along with other drop-shipped anti-glare products.
Over the past 12 months (February 2019 through January 2020), the store has averaged $5,346 in net revenue and $2,289 in net profit per month. The store owner has shifted the sales focus from the stand-alone website to Amazon FBA over the past year, and the business has seen considerable growth with the new focus.
Fulfillment is handled through a combination of Amazon FBA (Fulfillment By Amazon), FBM (fulfillment by merchant), and some dropshipping products. Currently, operations only take approximately 5 hours per week between fulfillment, marketing, customer service, and administration time.
- Niche: Various anti-glare products (please sign NDA to begin due diligence and get additional information)
- Store Model: Amazon FBA & FBM with some drop-shipping
P&L Period: Feb 2019 - Jan 2020 (trailing twelve months)
- Avg. Monthly Revenue: $5,346
- Gross Profit Margin: 68.1% of revenue
- Avg. Monthly Net Profit: $2,289
- Net Profit Margin: 42.8% of revenue
- Owner Time Requirement: 5 hours per week
ASKING PRICE: $100,000
The seller's $100,000 asking price was calculated as follows...
x 3.25 Annual Earnings Multiplier: $89,279
Plus Cost Value of Inventory on Hand $11,000
Equals: $100,279 - Rounded Down to: $100,000
P&L and Financial Information
Here is the P&L Statement for the most recent twelve months (February 2019 - January 2020). Click on the image to see a larger version of the P&L in a new tab.
As you would expect with a business that sells anti-glare products, the peak selling months are the warmer spring and summer months (April - August). The business still does well in the cooler months, but the business has always (for 15 years now) been somewhat cyclical with higher revenue/profit in the warmer months and lower revenue/profit in the cooler months.
Online retail sales have substantially increased from 2018 ($45,727) to 2019 ($64,197), which represents 40% revenue growth. The following charts clearly illustrate this growth...
With an amazing gross profit margin of 68.1%, this business has a ton of room to expand its paid advertising to boost sales further. The current owner has intended to expand his advertising efforts for a long time now, but he just hasn't found the time to do it.
The seller will of course give the eventual buyer the opportunity to conduct extensive due diligence, including one or more live "screen-share" web meeting(s) where you’ll be able to view reports and transactions in the store admin panel, payment accounts, paid advertising portals, Google Analytics, etc. to verify and confirm all of the figures shown in the P&L above.
About the Niche & Suppliers
As noted above, the store sells a selection of anti-glare products. The store's catalog is simple and easy to manage with just a dozen products, which makes fulfillment and warehousing inexpensive.
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 below). The purchase of this site will include both the designs and existing relationships with the factories where the products are produced. The eventual owner will be able to retain the existing factory relationships or move those elsewhere if desired.
Marketing and Traffic
This brand was launched in 2005 and has built up significant domain authority over the years. The website's #1 traffic source is free organic traffic (46.6%), with direct traffic being the #2 traffic source (23.2%). As noted above, the seller has been focusing on building the brand via Amazon over the past year, which has resulted in 40% sales growth over the past year and transformed the business into a more diversified multi-channel business.
The following screenshot from Google Analytics (GA) shows the traffic breakdown for the period February 2019 - January 2020.
The current owner estimates that he spends 5 hours per week running the store at its current operating level reflected in the P&L above. One reason the current owner is able to spend so little time operating the store each week is having set up the Amazon FBA focus on the most popular products.
Here's a list of the tasks the current owner performs himself:
- 1 hour per week: Shipping inventory to Amazon FBA
- 2 hours per week: Other fulfillment (eBay, Website, Amazon FBM) and returns
- 1 hour per week: Administrative tasks
- 1 hour per week: Marketing and Customer Service
Top Growth Opportunities
- Ramp Up Paid Advertising - You may have noticed in the P&L above that the current owner has only been spending ~$125 per month on paid advertising. With a product that has a 68% gross profit margin, there is a lot of "low hanging fruit" in the area of paid advertising. The current owner doesn't have much experience with PPC advertising and therefore hasn't done much, but a more experienced Internet marketer could really ramp up sales with remarketing ads, Google and Bing Product Listing Ads (PLAs), and more.
- Increase Email Marketing Efforts - The current owner has done very, very little in the way of email marketing. The Amazon focus has consumed his growth time. The business has an email list comprised of 10,000+ past customers who already made a purchase and are familiar with the brand.
- Expand Amazon FBA to International Markets - The owner has begun expanding into Canada, but hasn't had time to set up FBA, which results in significant shipping time and costs. Adding Amazon Canada FBA would provide a ready-built market to utilize for further expansion.
- Maximize Amazon Targeting through Catalog Updates - The current product listings are listed as generic accessories on Amazon, but they could be highly targeted to specific products which would increase the product suggestions from Amazon and could significantly improve views and conversions on Amazon.
Included with the SaleThe sale includes all of the following...
- The domain name and website (including all textual and graphical content)
- All social profile accounts associated with the site
- All customer lists (comprised of over 10,000 past customers)
- All supplier and factory accounts
- 30 days of support to train you/your team on how to run the business, manage the ad campaigns, etc. (first 20 hours via phone or live webinar/screen share, then Skype/email support after that)
- Note: The seller will certainly sign a non-compete as part of the Contract of Sale.
You can make an offer for this highly profitable eCommerce business here. We'll immediately present your offer to the seller. If he accepts your offer, we'll notify you immediately and update this page to let other interested parties know that an offer has been accepted.
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). 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 meeting(s) so you can review financial information, the store admin panel, payment accounts, sales reports, traffic reports in Google Analytics, 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 update this page to let other interested parties know that the sale has been finalized and remove this listing from the Store Coach Website Marketplace.
Submit an Offer or Inquiry
Sign NDA to Begin Due Diligence
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Disclaimer: Store Coach, Inc. is acting as the broker of the sale of this website/business and is presenting figures and information provided by the website/business owner. The website/business owner is solely responsible for all financial figures, statements, claims and information provided on this page as well as all financial 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 financial figures, statements, claims and information provided by the website/business owner.