FOR SALE: B2B Wellness and Spa Equipment Dropship Business
FOR SALE: B2B Wellness and Spa Equipment Dropship Business
Averaging $10,002 Net Profit Per Month!
Here are the top 6 Things you need to know about this business:
- This business originally launched in 2014. In its five years of operations, it has built a tremendous reputation with its customers and suppliers, as well as seeing excellent organic rankings.
- It operates with a 100% dropship store model, meaning you don't have to hassle with warehousing stock or the costs associated with having inventory on-hand.
- This store has earned $120,025 in net profit over the past twelve months.
- The store's catalog currently consists of over 200 total products from six brands and has agreements with 4 others. Of those ten brands, five of them no longer accept online resellers, making this a nearly impossible niche to break into without existing relationships.
- Over the past twelve months (Aug 1, 2018 - July 31, 2019) the site has averaged 12,615 visitors per month (which as an average of 414 visitors per day). Ahrefs.com estimates that the site gets $8,600 worth of free, organic traffic from Google and other search engines every month.
- The site is focused on selling the highest-end, respected brands in its industry, which has drawn in several large businesses and orders. It also tends to have a high Average Order Value (AOV) of $598 and amazing customer satisfaction.
The owner of this business is having to sell due to an unexpected illness in the family that is requiring significant amounts of time and financial resources.
- Niche: Wellness and Spa Equipment (please sign NDA to begin due diligence & get additional information)
- Store Model: 100% Dropship B2B and some Customer Retail
- Business/Website Age: 5 Years (Started in 2014)
- Avg Monthly Revenue: $110,356
- Avg Monthly Net Profit: $10,002
- Avg Order Value (AOV): $598
- Avg Visitors Per Day: 414/day (12,615/month)
- Weekly Time Requirement: 40 hours per week
ASKING PRICE: $399,000
Store Coach has assigned an asking price of $399,000 for this business, calculated as follows...
Trailing Twelve Months (TTM) Total Net Profit: $120,025
x 3.33-Year Earnings Multiplier: $399,683
Rounded Down to $399,000
Most online businesses sell for somewhere between 2.0x and 4.0x their annual net profit. Store Coach has assigned a multiplier of 3.33x for the following reasons:
- The business is over 5 years old
- Traffic, sales, and profits are all trending upward
- No inventory or working capital is required to run the business since all orders are drop-shipped directly to customers after the sale
- The fact that most of the top manufacturers in this niche are no longer accepting new dealers creates significant barriers to entry for this niche
- The site has strong organic rankings (214 top-3 rankings, searched for 16,550 times per month) and gets ~$8,600 worth of free, organic traffic every month
- The store's PPC campaigns are well-established and have a strong ROI
This store was launched in 2014 to provide practitioners in the wellness and spa industry a quality source for equipment and supplies. The business remains well-positioned to expand with the rapid growth in the U.S. spa industry. Since its inception, this business has seen robust sales, growth, and profits marketing on Google, Bing, and Facebook.
While initially targeting the spa industry, the customer base has grown to include clinics, sports teams, hotels, and hospitals. By focused on relationships with suppliers of high-end products, this store has developed a great level of customer satisfaction, and a high average order value. Several of these suppliers are no longer accepting online resellers, meaning this niche has a high bar for entry, leaving this store in a great position going forward.
P&L AND FINANCIAL INFORMATION
Below we have the Trailing Twelve Months (TTM) Profit & Loss Statement for the 12-month period August 2018 - July 2019:
*This store tracks accounting on a cash basis, with the cost of goods sold (COGS) for a particular order frequently falling outside of the calendar month relating to the purchased goods. To better represent the actual monthly net profit over the past year, the COGS listed here were distributed in the P&L Statement above based on the average percentage of COGS for the entire twelve-month period and in proportion to that month's total revenue number.
Here's a summary of the key numbers from the P&L...
- Avg. Monthly Revenue: $110,356
- Avg. Monthly Cost of Goods Sold: $88,297
- Avg. Monthly Net Profit (after all expenses): $10,002
The current owners will, of course, give the eventual buyer the opportunity to perform extensive due diligence and verify all of the income claims and other information presented in this listing. This will include doing a number of live "screen-share" web meetings to log in and view reports and transactions in the store admin panel, payment accounts, advertising accounts (Google, Facebook, etc.), Google Analytics, etc.
Following is a screenshot of the 'Store Overview' report from the BigCommerce store admin panel.
ABOUT THE PRODUCTS & SUPPLIERS
This business originally launched to sell to individuals and small business owners but has grown to serve larger businesses as well. As mentioned above, the store currently lists products from six brands but has recently gained access to four more. These ten brands represent the top quality brands in this industry, and several of them are no longer accepting new online resellers, which means this industry is very difficult to enter into.
Two of the new brands include products that have been requested from past buyers and will allow the store to grow further into the medical, chiropractic, and salon markets.
After you electronically sign the NDA, the owners are of course willing to disclose the name of their website and the brand name of their products to serious buyers.
The business has outstanding relationships with these suppliers, and the owner has confirmed these will transfer to the buyer.
MARKETING AND TRAFFIC
This site has A LOT of Page 1 rankings and consequently gets A LOT of free, organic traffic from Google (as well as other search engines). The following table shows rankings data from 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 214 "top 3" rankings (with a collective 16,550 searches per month)
- A total of 403 "top 5" rankings (43,160 searches/month)
- A total of 760 "top 10" rankings (104,890 searches/month)
As you can see from the screenshot below, Afrehs.com estimates that it would cost ~$8,600 per month of Pay-Per-Click ad spend to generate as much meaningful traffic as the site currently gets FOR FREE each month due to its strong organic rankings. Almost as importantly, this site has 822 "page two" rankings, representing a potential traffic boost of 95,970 searches monthly (nearly doubling the current monthly searches from "page one" rankings) should a new owner work on small increases to SEO efforts.
These organic rankings have seen considerable growth in the past three years. Below you'll see a screenshot showing organic traffic over the last three years for this site. There is some seasonality in traffic during the autumn/winter months (more obvious during the past year due to the more established rankings).
While the majority of the store's current traffic is paid, the organic traffic provides a stable revenue base and an excellent growth opportunity.
The current owners spend approximately 40 hours per week on the business, primarily on customer service and order processing. The site currently offers live chat, phone, and email support.
Processing Orders - When orders arrive, the order information is sent on to the appropriate supplier. Once the order has shipped, the order status is updated in the store admin panel which forwards the tracking information to the customer.
- Customer Service - This includes responding to emails (mostly using templated emails), taking (and returning) phone calls, live chatting with customers (occasionally), processing occasional refunds, etc.
As part of the sale, the current owners will train the buyer on all aspects of running the business. This will include "live" training (via web meeting, webinar, Skype, phone, etc.) as well as 30 days of email support.
- Expand the catalog with the existing supplier account - The current owner has relationships with 4 high-end equipment providers but hasn't had time to list the products on the site yet. This would allow for significant high-end product expansion. Three of these companies are currently not accepting new online dealers.
- Financing / Leasing Opportunities - Financing / Leasing opportunities are not currently available on the site but stand to have an immediate positive impact on sales as many requests have been made for such options. Further expansion of payment options beyond PayPal and Credit Cards present additional opportunities as well (including Purchase Orders for state and federal purchasers).
Pursue Email Marketing - The current mailing list includes approximately 1,800 newsletter subscribers and over 5,000 past customers but it isn't used frequently or effectively. Most notably, there isn't even an auto-responder series (which most email marketing experts will tell you is the #1 key to maximizing the value of a mailing list).
- Improve onsite and offsite SEO - This store as a significant number of "page two" rankings in Google Search Results. By improving current SEO (Search Engine Optimization) efforts, the store could see rapid growth in FREE organic traffic.
INCLUDED WITH THE SALE
The sale includes all of the following...
- The domain name and website (including all textual and graphical content)
- All videos, ads, artwork and marketing materials
- Transfer of all supplier accounts (10 brands, including five that are no longer accepting online resellers)
- Full customer & mailing lists
- All social media accounts
- 30 days of support to train you/your employee on how to run the business, place orders with suppliers, maintain the store, etc.
You can make an offer for this highly profitable online business here. 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, 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.
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, expertise or desire 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.
Sign NDA to Access Due Diligence Package
Please note that until you electronically sign the NDA, we will not disclose the domain name of the website or other confidential information.
Ask a Question About This Listing
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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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