FOR SALE: 2.5 Y/O Dropship eCommerce Store Selling Personalized Print-On-Demand (POD) Products
Up for sale is a 2.5-year-old dropship eCommerce website that sells highly customized and personalized Print-On-Demand products (i.e. T-shirts and other apparel, home decor and decorations, blankets, posters, flags, ornaments, keychains and more). Over the past 12 months, the site has generated over $910k in revenue and about $159k in net profit. One hundred percent of orders are drop-shipped directly from the POD suppliers to the customers.
Niche: Personalized Print-On-Demand products (please sign the NDA to see the domain name)
Store Model: 100% dropshipped by POD suppliers
P&L Period: Trailing Twelve Months (TTM) of May 2021 - Apr 2022
Business Age: ~2.5 years (launched in Jan 2020)
Avg. Monthly Gross Revenue: $76,065
Avg. Monthly Net Profit: $13,240
- Avg. Order Value (AOV): $72.14
- Gross Profit Margin: 70.8% of revenue
- Net Profit Margin: 17.4% of revenue
Asking Price: $395,000
The seller's $395,000 asking price was calculated as follows...
Trailing Twelve Months (TTM) net profit: $158,859
x 2.5x Annual Earnings Multiplier: $397,147
Rounded down to $395,000
P&L and Financial Information
Here is the accrual-basis P&L Statement for the TTM period May 2021 - April 2022. Click on the image to see a larger version of the P&L in a new tab.
Following are a few key takeaways:
- The site has an incredibly low refund rate of only 0.2%, which is a strong indication that a) customers really like the products, and b) the quality of the products is top notch.
- The business has an amazing gross profit margin of 70.8%, giving you plenty of room for marketing and advertising.
- The P&L includes over $46,000 in labor and contractor costs and almost $2,000 in office expenses. Depending on how you choose to operate the business, you may be able to reduce these costs.
- The net profit margin (after all expenses, including advertising expenses and labor costs) is a solid 17.4% of gross revenue.
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.
About the Market & Products
As noted above, the site sells a wide variety of Print-On-Demand (POD) products, including T-shirts and other apparel, home decor and decorations, blankets, posters, flags, ornaments, keychains and much more.
This business is all about customization and personalization. Many Print-On-Demand products are customizable (to a certain extent), but this site takes customization to a whole new level.
Here's an example...
As you can see, the interface allows the customer to "personalize" virtually everything about the design to be printed on the apparel, including:
- Style (i.e. T-shirt, hoodie or sweatshirt)
- Color (typically 4-8 options)
- Quote (typically 5-10 options)
- Character's emotion / facial expression
- Character's skin tone
- Character's hairstyle and hair color
- Character's shirt style/color
- Character's pants style/color
- Character's name
With this level of customization, customers are able to create the perfect, personalized product for themselves or their loved ones, making the site an ideal place to shop for gifts for Valentine's Day, Mother's Day, Father's Day, Halloween, Christmas and other holidays and occasions (including birthdays, anniversaries, weddings, births, etc.). The site provides dozens and dozens of "product templates" like this but then gives the customers the customization options to really make the products their own.
As you can see from the amazingly low 0.2% return rate, customers absolutely love these products. Only 2 in 1,000 customers return the items they purchase!
Traffic & Marketing
The site currently uses a combination of the following to drive traffic to the site:
- Facebook / Instagram ads
- Google ads
- Email marketing to past customers
Currently, 98%+ of visitors and orders are to people living in the United States. Marketing to customers in other countries (including both English-speaking countries like Canada, the UK, Australia, etc. and non-English speaking countries) is a huge growth opportunity the new owner could pursue.
The customer list is an extremely valuable asset, especially considering how happy customers are with the products. As new occasions and holidays come around, mailing out to past customers drives a lot of sales with no advertising expense (other than the fixed monthly cost of the email service).
Following are several screenshots from Google Analytics for the trailing twelve-month period May 2021 - April 2022 (note: GA tracking wasn't activated until mid-July 2021)...
Top Growth Opportunities
Following are the site's top growth opportunities:
Start selling internationally - The site currently targets the US market and sells almost entirely to customers in the United States. But the POD suppliers the business uses ship to the entire world. The site could easily be marketed to other large markets like the UK, Canada, Germany, other EU countries, Japan, Australia, etc.
Utilize other marketing channels - Historically, the seller has used only Facebook/Instagram ads and a limited amount of Google ads to drive new visitors to the site. There are a whole host of other marketing channels available, including Microsoft (Bing), TikTok, SnapChat, etc. Many of these marketing channels may prove to be more effective from a Return On Ad Spend (ROAS) perspective.
- Continue releasing new designs - The name of the game with this business is regularly launching new designs and then marketing them, both to new customers (via ad campaigns) and to past customers (via newsletter mailings). When a new design catches on, you can quickly scale up ad spend to cash in, especially when a big holiday like Mother's Day, Father's Day or Christmas is coming up.
- Expand to other POD products - The site currently offers a pretty "standard" selection of POD products. There are dozens of other types of POD/customizable products that could be added to the site, including hats, beanies, aprons, baby clothes, bags, backpacks, photo frames, coasters, pillows, mouse pads, welcome mats, water bottles, calendars, etc.
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 product designs and artwork
- All customer lists and email lists associated with the business
- 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
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.