FOR SALE: Dropshipping-Based Outdoor Toy/Hobby Store
FOR SALE: Dropshipping-Based Outdoor Toy/Hobby Store
Up for sale is a 100% dropshipping-based eCommerce store that is currently netting $2,014 profit per month after all expenses. The store sells high-end outdoor toy/hobby products (please submit the NDA below to get more information about the product line & website name).
The store averages about 40 orders per month (an average of just 1.33 orders per day) and has an Average Order Value (AOV) of $1,005. The average profit per order is right around $148, giving you a lot of room for advertising.
This site has an amazing rating with ShopperApproved, a third-party merchant review program. After over 450 reviews, the site has a stellar 4.9-star rating, which gives visitors a lot of assurance that they are buying from a reputable company.
The owner (who is a long-time member of Store Coach) is in the process of moving and is selling the store in order to make a larger down payment on his new home. He is of course willing to sign a non-compete in conjunction with the sale.
- Niche: Outdoor toy/hobby products (sign NDA for more information)
- Inventory Model: 100% drop-shipping
- Business/Website Age: Started in November 2017
- P&L Period: 2019 Year-To-Date (Jan - Jul 2019)
- Avg Monthly Revenue: $39,755/month
- Avg Monthly Net Profit: $2,014/month
- Avg Orders Per Month (Day): 40/month (1.33/day)
- Avg Order Value (AOV): $1,005
- Gross Profit Margin: 14.7%
- Avg Gross Profit Per Order: $148
ASKING PRICE: $72,000
The seller's asking price for this store is $72,000. Here is how the $72,000 asking price was calculated...
Jan - Jul 2019 Total Net Profit: $14,098
/ 7 to Yield Average Monthly Net Profit: $2,014
x 36 Month (3.00 Annual) Earnings Multiplier: $72,504
Rounded Down to: $72,000
P&L AND FINANCIAL INFORMATION
Here's the P&L for 2019 Year-To-Date (Jan - Jul 2019). Click on the image to see the full-size image in a new tab.
Here's a quick summary of the key numbers from the P&L...
- Avg. Monthly Revenue: $39,755
- Avg. Monthly Cost of Goods Sold: $34,085
- Gross Profit Margin (after COGS, including shipping): 14.7% of revenue
- Avg. Monthly Net Profit: $2,014
On average, the store makes about 40 orders per month (which is 1.33 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 over $1,000 of revenue (the AOV is $1,005) and right around $148 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" report from Shopify and 2) the "Ecommerce Overview" report from Google Analytics that verify the revenue figure...
ABOUT THE NICHE & SUPPLIERS
As noted above, the store sells a specific product line of high-end outdoor toy/hobby products. The Average Order Value (AOV) for the store is $1,005. 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 50 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 the #1 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).
MARKETING AND TRAFFIC
Here's a screenshot of the 'Acquisition Overview' report from Google Analytics that shows the store's traffic breakdown for 2019 YTD (Jan - Jul 2019).
The traffic breakdown is as follows:
- Organic Search (see note below) - 31%
- Social (primarily Facebook ads) - 29%
- Direct - 29%
- Paid Search - 5%
- Referral - 4%
- Display Network Ads - 2%
- Other / Email - <1%
Note 1: The 'Organic Search' traffic is a combination of a) traffic from Google and other search engines (due to the site's search engine rankings, as discussed below) and b) traffic from people searching Google for the site's name/domain name after seeing one of its ads.
Note 2: The 'Direct' traffic is a combination of a) past customers/visitors who already know the domain name of the site and are visiting again and b) traffic from people coming directly to the site after seeing one of its ads.
While the current owner hasn't focused much on SEO, 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 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 10 "top 3" rankings (with a collective 520 searches per month)
- A total of 22 "top 5" rankings (1,440 searches/month)
- A total of 65 "top 10" rankings (6,890 searches/month)
- A total of 138 "top 20" rankings (16,200 searches/month)
- A total of 201 "top 30" rankings (28,300 searches/month)
Here's a screenshot of the 'Audience Overview' report from Google Analytics for Year-To-Date 2019 (Jan - Jul 2019).
In addition to the country-by-country visitor breakdown (which shows that ~94% of visitors are from the USA), there are several important things to note from the above report:
- Over the past year, the site has averaged 1.56 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.
- The average visitor spends 3 minutes and 32 seconds on the site, about twice as long as the average visitor duration for most eCommerce sites.
- The average visitor looks at 4.14 pages on the site, a very high number. These aren't "one-and-done" type visitors who view a single page and then leave. It's quite uncommon for a site to have such a high pages-per-session number.
- Only 38% of visitors "bounce" from the site before viewing a 2nd page. It's extremely difficult to find a site with such a low bounce rate!
The above numbers are referred to as User eXperience (UX) metrics, which are one of the biggest (if not THE biggest) Google ranking factors. This site is absolutely killing it across the board for these UX metrics. Visitors absolutely love this site (as evidenced by the fact that many visitors return for additional visits, spend a long time on the site, and visit lots of pages each visit), and Google's algorithm continues to place greater and greater emphasis on how users interact with the site. Bottom line: this site's organic rankings should continue to climb due to its strong UX metrics, leading to more and more free, organic traffic over time.
As you can see in the P&L above, the current owners only spend ~$2,137/month on paid advertising each month (representing only 0.8% of revenue). And with an average gross profit margin of $148 per order, there's A LOT of room for growth and expansion with paid advertising.
The current owner currently spends approximately 20 hours per week on the business. The majority of this time (15 hours/week) could very easily be given to an employee or contractor, as it is very simple customer service and order processing work. The remaining 5 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 supplier accounts
- All social profile accounts, including Facebook (which has 2,400+ followers)
- Mailing list (over 6,800 containing past customers and opted-in subscribers)
- ShopperApproved account (which has a 4.9-star rating after 450+ reviews)
- Signing on a non-compete agreement
- 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)
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 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.
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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.