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FOR SALE: 3.5 Y/O eCommerce Store Selling Chicken Coops & Runs


Up for sale is a 3.5-year-old online store that sells several of the top-brands of US-made chicken coop and runs. Over the past 12 months, the site has generated over $540k in revenue and about $54.5k in net profit. Its Average Order Value (AOV) is $1,403 with an average profit per order of $200. The vast majority of orders are dropshipped, with one brand stocked and fulfilled by a 3PL fulfillment center.

The owner is selling the site because he and his partners launched a SaaS business about a year ago and need additional capital to pay for ongoing development costs.

Key Information

  • Niche: Chicken coops, runs & accessories (please sign the NDA below to see the domain name)
  • Store Model: Primarily dropship
  • P&L Period: Trailing Twelve Months (TTM) - May 16, 2021 - May 15, 2022
  • Business Age: ~3.5 years (launched in Jan 2019)
  • Avg. Monthly Gross Revenue: $45,395
  • Avg. Monthly Net Profit: $4,546
  • Net Profit Margin: 10.0% of revenue
  • Owner Time Requirement: 6-8 hours per week

Asking Price: $163,000

The seller's $163,000 asking price (not including inventory, which is typically around $20-30k at cost value) was calculated as follows...

Trailing Twelve Months (TTM) net profit: $54,552
x 3.0x Annual Earnings Multiplier: $163,656
Rounded down to $163,000 

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P&L and Financial Information

Here is the accrual-basis P&L Statement for the TTM period May 16, 2021 - May 15, 2022. Click on the image to see a larger version of the P&L in a new tab.

TTM Profit and Loss Statement - May 16, 2021 thru May 15, 2022

The current owner will of course give the eventual buyer the opportunity to conduct extensive due diligence, including a live "screen-share" web meeting where you’ll be able to view reports and transactions in the store admin panel, payment accounts, Google Analytics, etc. to verify and confirm all of the figures shown in the P&L above.


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About the Market & Products

As you can see from the following Google Trends screenshots, the search volumes for the keyword phrases "chicken coop" and "chicken run" have been steady (with a slight upward trend) over the past 5 years...

Google Trends screenshot showing the 5-year trend for the search phrase Chicken Coop

 

Google Trends screenshot showing the 5-year trend for the search phrase Chicken Run

As you would expect given the product line, search demand (as well as sales and profits) peak during the warmer spring and summer months. Demand drops during the colder winter months, but the business still generates plenty of sales and profits year-round.


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Traffic & Marketing

The site's #1 traffic source is free organic traffic, followed by direct traffic. The owner does a little bit of paid advertising to generate additional traffic and sales, but the average monthly cost of paid ads is only $1,142 over the past year.

The following 'Acquisition Overview' report from Google Analytics shows the traffic breakdown (by traffic source) for the past 12 months:

Google Analytics Acquisition Overview Report for May 16, 2021 thru May 15, 2022

As you can see, the site's top traffic sources are 1) organic traffic (38.5%) and 2) direct traffic (29.1%), which together account for over 2/3rds (67.6%) of the overall traffic to the site. Paid advertising (primarily Google) provides additional traffic and generates additional (supplemental) sales, but organic traffic is what really drives this business.

Organic rankings (which generate free organic traffic) have steadily risen over the past 3 years (subject to seasonality), as you can see in this Google Analytics screenshot...

Google Analytics Organic Search Traffic Over the 3-Year Period May 16, 2019 thru May 15, 2022

Here are 3 reports from ahrefs.com that shows the organic traffic, organic keywords, and organic traffic value over the last few years...

Ahrefs Organic Rankings and Traffic Reports

The following table shows the number of keyword phrases and the combined total monthly search volume for those keyword phrases for each of the following Google ranks (per ahrefs.com data as of 5-19-22):

 Google Rank # of Keyword Phrases Total Monthly Search Volume
#1 16 1,760
#2-3 17 2,760
#4-6 39 8,890
#7-10 86 20,950
#11-15 81 24,280
#16-20 55 5,800
#21-30 137 35,900

We will happily provide you with the ahrefs.com data export (which allows you to see which keyword phrases fall into each category and the monthly search volume for each) once you have signed the NDA below.


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      Store Operations

      At its current revenue level reflected in the P&L above, this business only requires about 6-8 hours per week to run.

      Weekly tasks include processing orders, responding to emails and inquiries, answering/returning phone calls, maintaining the company's books and records, and checking/tweaking ad campaigns. The vast majority of these tasks could easily be handled by an employee, staff member or contractor.

      The owner will of course train the buyer (or the buyer's team) on how to handle all aspects of running the business.


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      Top Growth Opportunities

      Following are the top growth opportunities:

      • Continue SEO efforts to further improve organic rankings - While the site already has a decent amount of top-3 Google rankings (i.e. 33 top-3 keyword phrases totaling 4,520 searches per month), it's right on the cusp of having A LOT more. As the table above shows, the site currently ranks #6-10 (still on page 1 but not in the top 3) for an additional 125 keyword phrases that collectively get 29,840 searches per month. Additional efforts to improve the site's on-page SEO and domain authority could pay huge dividends in a rather short period of time.

      • Expand paid advertising - As mentioned above, the current owner only spends $1,142 per month on paid ads. Furthermore, he is only using 2 paid ad platforms (primarily Google). Increasing the advertising budget and utilizing more ad platforms (i.e. Microsoft Bing, Facebook, Instagram, etc.) would no-doubt generate additional sales and profits.

      • Promote newly added brand - The current owner just added a new brand (the one that is fulfilled by a 3PL fulfillment center) a few weeks ago. The new brand has better margins than the other brands and offers customers a great alternative at a lower price point. This new brand is selling well already and showing a lot of promise.
      • Launch your own private-label brand - One idea the owner has toyed around with but just hasn't had the time to pursue is contracting with a local carpenter to build your own private-label brand of chicken coops (and possibly runs as well). While this growth opportunity would require a fair amount of effort up front, the owner feels it could pay huge dividends in the long run and is the most exciting long-term growth opportunity.

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      Included with the Sale

      The sale includes all of the following...

      • The domain name and website, including all textual and graphical content of the site

      • All images and creatives (including private professional images of many products)
      • All customer lists and email lists associated with the business (comprised of ~4,400 retail customers/opt-ins)
      • All social media accounts (Facebook, Twitter, etc.)
      • All contracts and relationships with existing distributors, wholesalers, retailers and private-label clients
      • 30 days of support to train you/your team on how to run the business, process orders, manage advertising campaigns, and pursue growth opportunities

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      Buying Process

      You can make an offer for this online business here. We will immediately present your offer to the sellers. If they accept 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 10-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 10-day due diligence period, we'll work closely with you and the seller to help you complete due diligence. Among other things, this will include doing a live screen-share web meeting so you can review financial information, the store admin panel, payment accounts, Google Analytics, 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.


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

       

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