SOLD: 100% Dropshipped Outdoor Toy/Hobby Store - Priced to Sell FAST! (Low 2.0x Multiplier)
SOLD: 100% Dropshipped Outdoor Toy/Hobby Store - Priced to Sell FAST! (Low 2.0x Multiplier)
NOTICE: This website has been SOLD and is no longer available to purchase. We invite you to...
- Visit the Store Coach Marketplace to see other web stores currently available to purchase; or
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Up for sale is a 100% dropshipping-based eCommerce store that is 2.25 years old and is averaging $1,665 net profit per month. The store sells high-end outdoor toy/hobby products (please submit the NDA below to get more information about the product line & website name).
This site is priced to sell fast, with the $39,000 asking price being based on a below-market 2.0x annual earnings multiple. The owner of the store is completely buried with a new start-up business requiring 50+ hours per week, and he is motivated to sell this site quickly (hence the low 2.0x multiple).
The store averages about 33 orders per month (an average of just over 1 order per day) and has an Average Order Value (AOV) of $1,005. The average profit per order is right around $151, giving you a lot of room for paid advertising.
This site has an amazing rating with ShopperApproved, a Google-approved third-party merchant review program. After over 550 reviews, the site has a stellar 4.8-star rating, which gives visitors a lot of assurance that they are buying from a reputable company.
- Niche: Outdoor toy/hobby products (sign NDA for more information)
- Inventory Model: 100% drop-shipping
- Business/Website Age: 2.25 years (started in Nov 2017)
P&L Period: Feb 2019 - Jan 2020 (trailing 12 months)
- Avg Monthly Revenue: $33,442/month
- Avg Monthly Net Profit: $1,665/month
- Avg Orders Per Month (Day): 33/month (1.09/day)
- Avg Order Value (AOV): $1,005
- Gross Profit Margin: 15.4%
- Avg Gross Profit Per Order: $151
- Weekly Time Requirement: <10 hours (1-2 hours/day)
ASKING PRICE: $39,000
This store is priced to sell FAST!!! The seller's asking price for this store is $39,000, calculated as follows...
Feb 2019 - Jan 2020 Total Net Profit: $19,981
/ 12 to Yield Average Monthly Net Profit: $1,665
x 24 Month (2.00 Annual) Earnings Multiplier: $39,962
Rounded Down to: $39,000
P&L AND FINANCIAL INFORMATION
Here's the P&L for the most recent 12 months (February 2019 - January 2020). Click on the image to see the full-size image in a new tab.
As you would expect with a store that sells outdoor toy/hobby products, sales are somewhat seasonal. Revenues peak during the hot summer months (June, July and August) and tend to be 2-3x higher in those months than in any other month of the year. The few months leading up to summer (February through May) also tend to have somewhat higher sales, though it's worth noting that the store's main supplier had stock issues in May 2019 which limited sales that month.
Here's a quick summary of the key numbers from the P&L...
- Avg. Monthly Revenue: $33,442
- Avg. Monthly Cost of Goods Sold: $28,315
- Gross Profit Margin (after COGS, including shipping): 15.4% of revenue
- Avg. Monthly Net Profit: $1,665
On average, the store makes about 33 orders per month (which is 1.09 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 $151 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. Accordingly, the store performs best in the hot summer months (June - August) and also does quite well in the months leading up to summer (February - May). 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 the past twelve months (February 2019 - January 2020).
The traffic breakdown is as follows:
- Social (primarily Facebook ads) - 33.9%
- Organic Search (see note 1 below) - 32.4%
- Direct (see note 2 below) - 28.3%
- Referral - 3.5%
- Paid Search - 1.3%
- Display / Other / Email - <1% combined
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 13 "top 3" rankings (with a collective 610 searches per month)
- A total of 24 "top 5" rankings (1,570 searches/month)
- A total of 52 "top 10" rankings (4,880 searches/month)
- A total of 108 "top 20" rankings (19,980 searches/month)
- A total of 185 "top 30" rankings (31,740 searches/month)
Here's a screenshot of the 'Audience Overview' report from Google Analytics for the past twelve months.
In addition to the country-by-country visitor breakdown (which shows that 94.4% of visitors are in the USA), there are several important things to note from the above report:
- Over the past year, the site has averaged 1.53 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 19 seconds on the site, about twice as long as the average visitor duration for most eCommerce sites.
- The average visitor looks at 4.07 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 37.8% 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 ~$2,014/month on paid advertising each month. And with an average gross profit margin of $151 per order, there's A LOT of room for growth and expansion with paid advertising.
The current owner currently spends approximately 1-2 hours per day on the business. The majority of this time could very easily be given to an employee or contractor, as it is very simple customer service and order processing work. The remaining few 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 2,600+ followers)
- Mailing list (over 7,500 containing past customers and opted-in subscribers)
- ShopperApproved account (which has a 4.8-star rating after 550+ reviews)
- Signing on a non-compete agreement
- Free membership to the Store Coach Academy
- 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.