FOR SALE: High-AOV Dropship eCommerce Store Selling Niche Sports & Games Product Line
Up for sale is a 7-year-old dropship eCommerce website that sells a niche product line within the sports & games market. This is a low-volume, high-profit-per-order store that generates a decent amount of annual profit with very little work (typically about an hour a week). The store's Average Order Value (AOV) is $1,882. With a gross profit margin of 27.3%, the average profit per order is $514. Almost all sales are driven by free, organic traffic thanks to the site's 292 "top 10" rankings in Google. Over the past 12 months, the site has generated just shy of $83,000 in revenue and around $17,000 in net profit. The store is incredibly easy to run, requiring only about 5 hours per month.
- Niche: Sports & games niche (please sign the NDA to see the domain name)
- Store Model: 100% drop-shipped by 3 US-based suppliers
- P&L Period: Trailing Twelve Months (TTM) of Oct 2021 - Sep 2022
- Business Age: ~7 years (launched in the fall of 2015)
- Avg. Monthly Gross Revenue: $6,901
- Avg. Monthly Net Profit: $1,405
- Avg. Order Value (AOV): $1,882
- Avg. Profit Per Order: $514
- Gross Profit Margin: 27.3% of revenue
- Net Profit Margin: 20. 4% of revenue
- Top 10 Keyword Phrases: 292 (76,540 searches/month)
- Orders Per Month: 3.67
- Owner Time Requirement: 1-2 hours per week
Asking Price: $50,000
The seller's $50,000 asking price was calculated as follows...
Trailing Twelve Months (TTM) net profit: $16,861
x 3.0x Annual Earnings Multiplier: $50,583
Rounded down to $50,000
Here is the accrual-basis P&L Statement for the TTM period October 2021 - September 2022 (organized by calendar quarter for simplicity). 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 a very solid 27.3% gross profit margin. Given the fact that the Average Order Value (AOV) is $1,882, this means the average order brings in $514 of profit.
- The seller is currently spending very little on paid advertising (an average of just $56 per month). With the kind of margins this store has, there's a lot of room for Pay-Per-Click advertising to generate additional sales and still pocket a lot of profit.
- Q4 has historically been the best quarter of the year (particularly from Thanksgiving to Christmas). Now is the perfect time to buy this business and immediately generate big 4Q profits.
- The net profit margin (after all expenses) is a solid 20.4% of revenue.
Following are screenshots of the Shopify 'Finances Summary' report for each of the 4 quarters...
The revenue numbers from the P&L above line up perfectly with the 'Total Sales' numbers from these Shopify reports (aside from a small discrepancy in 4Q 2021 which is simply the result of the timing of when a late 3Q 2021 order was recognized and recorded in the P&L). Please also note that the P&L above omits an extremely rare and "flukey" chargeback in 1Q 2022 (the store has only had 2 lost chargebacks in its 7 years of existence).
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.
As noted above, the site sells a niche product within the sports and games market. The exact product line (along with the domain name of the website) will be disclosed once you have signed the NDA below.
Here is a Google Trends screenshot showing the demand for the product (as measured by Google search volume) over the past 5 years in the USA...
As you can see, search volume always peaks in the weeks leading up to Christmas, making right now the perfect time to snatch up this little eCommerce store.
The store has right around 200 products, all of which are sourced from 3 suppliers that are all based in the United States (and ship directly from their warehouses in the United States).
Dropshipping is an ideal store model that requires virtually zero working capital. You don't pay your suppliers for products until after a customer has placed an order on your site and paid you for it. For this store, the average transaction look like this... 1) A customer places an order on your site and pays you $1,882. 2) You forward the order information on to the supplier and pay them $1,368 (meaning that you keep $514 of profit). 3) The supplier ships the order from their warehouse directly to the customer.
The vast majority (about 94%) of the site's total traffic is either free, organic traffic (82.3%) or direct traffic (11.5%) from prior visitors who know the site's domain name and come directly to it, as you can see from this Google Analytics screenshot for the past 12 months:
Following is another screenshot from Google Analytics that illustrates how free, organic traffic has continued to increase over the past 5 years (Oct 2017 - Sep 2022), with obvious "bumps" each year during the holiday shopping season...
The following report from ahrefs.com (one of the most widely-used tools for analyzing organic rankings and keyword data) shows that this store currently gets around $2,000 worth of free, organic traffic each month thanks to its high keyword rankings (see the '$2.0k' amount shown in the top-right corner)...
As of mid-November 2022, ahrefs.com reports that the site has the following keyword rankings in Google.com (USA)...
|Google Rank||# of Keywords||Searches/Month|
In total, that's 292 "top 10" keyword rankings that get a combined 76,540 searches per month on Google.com (USA).
Following are the site's top growth opportunities:
Ramp advertising way up - As noted above, the seller has only been spending an average of $56 per month on paid advertising (basically just remarketing ads to prior visitors). With the average profit per order being $514, there's a lot of room for Pay-Per-Click advertising to generate additional sales and profits (particularly during the holiday shopping season when conversion rates are higher).
Continue SEO efforts - If you look at the keyword rankings table above, the site currently has 42 keyword phrases (which get a combined 3,730 monthly searches) ranking in the top 3 in Google. This is great, but it's just the tip of the iceberg. There are another 250 keyword phrases (which get a combined 72,810 monthly searches) for which the site currently ranks in spots 4-10. If additional SEO efforts bumped these rankings into the top 3 (which statistically get the vast majority of the clicks), the site could easily triple or quadruple its free organic traffic become an absolute cash cow.
- Ramp up sales of related sports & games products - The seller recently expanded the site's catalog to include various other sports & games products that its 3 suppliers offer, but with limited on-page SEO and no paid advertising, the site has made very few sales for these other products. A greater focus on these other product lines could turn this store into more of a high-end sports & games "superstore" and greatly increase its revenue and profits.
The sale includes all of the following...
- The domain name and website, including all textual and graphical content of the site
- All 3 supplier accounts
- All customer lists and email lists associated with the business
- All social media accounts (Facebook, Twitter, etc.)
- The store's ShopperApproved account (which has a 4.6-star rating after 35+ verified reviews)
- 30 days of support to train you/your team on how to run the business, process orders, manage ad campaigns, and pursue growth opportunities
- Note: The sale does not include the seller's Signifyd account (for fraud detection/prevention) as he uses it for other stores as well, but he will assist you in setting up your own Signifyd account.
You can make an offer for this online business here. We will immediately present your offer to the seller. If he accepts 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.
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.