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FOR SALE: Tailored Men's Clothing "Receive & Ship" Store

Averaging $6,007 Net Profit / Mo

Top 7 Things to Know

1. This business was designed by the current owner who has almost 10 years of custom clothing experience and was created to fill a need for custom luxury products at an accessible price. The current owner will provide training in the custom clothing and tailoring industry, so that this business may be run by someone with zero industry experience. 

2. This business has developed significant amounts of customer loyalty. While it launched in August 2018, over 25% of the store's total orders (and 17% of revenue) have come from returning customers. This kind of repeat business is almost unheard of for luxury products and speaks to a high degree of customer satisfaction that should only continue to grow. 

3. This business is focused on high-profit orders, so it requires little time to process and fulfill orders. The current owner spends approximately 5 hours a week on order fulfillment, customer service, and marketing combined. 

4. The store uses the "Receive & Ship" business model. Each product is made custom on ordering by the supplier. So you don't need to spend any money ahead of time building inventory. Orders are placed through a simple software program. On completing the product, the supplier ships it to the store owner, who ships that order on to the customer. This allows the owner to add in marketing or branding materials prior to it being received by the customer. This fulfillment process could also be easily outsourced to a third party.

5. The Average Order Value (AOV) is a solid $824. With an average gross margin of 38.24%, the average order generates $315 of gross profit. With such a large profit margin, there's plenty of room for marketing and advertising.

6. To-date traffic to this site has largely been driven by word of mouth referrals, the only paid advertising that has been tested has been basic Facebook retargeting, leaving this a huge avenue for sales growth (see the Growth Opportunities section below for more details).  

7. The supplier for this store provides fresh products seasonally with high-quality product photos, giving multiple opportunities for repeat orders (ideal for email marketing), and easy catalog management. 

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Key Metrics

  • Niche: Custom Tailored Men's Clothing (please sign NDA to begin due diligence & get additional information)
  • Store Model: "Receive & Ship" (no inventory)
  • Business/Website Age: 8 Months (started in August 2018)
  • Avg. Monthly Revenue: $16,461/month
  • Avg. Monthly Net Profit: $6,007/month
  • Avg. Order Value (AOV): $824
  • Avg. Profit Per Order: $315
  • Weekly Time Requirement: 5 Hours

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Asking Price: $215,000

The asking price for this business is $215,000, calculated as follows:

$36,039 Net Profit (Oct 18 - March 19)
Divided by 6 months for an average monthly net profit of $6,007
x 12 for an estimated annual net profit
x 3.0 Annual Earnings Multiplier = $216,252
Rounded Down to $215,000

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P&L and Financial Information

Here is the accrual-basis Profit & Loss Statement for October 2018 - March 2019 (click the image to view a larger version of the P&L in a new tab):


Here's a summary of the key numbers from the P&L...

  • Avg. Monthly Revenue: $16,461
  • Avg. Monthly Cost of Goods Sold (including product and product discounts): $10,047 (61.03% of revenue)
  • Gross Profit Margin: 38.97% of revenue
  • Avg. Monthly Net Profit (after all expenses): $6,007 (36.49% of revenue)

The current owner will, of course, give the eventual buyer(s) the opportunity to perform extensive due diligence and verify all of the income claims and other information presented in this listing. This will include doing a number of live "screen-share" web meetings to log in and view reports and transactions in the store admin panel, payment accounts, advertising accounts (Facebook), Google Analytics, etc.

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About the Products & Suppliers

The store sells custom tailored men's clothing. Because each purchase is specially made for the customer, this site is designed with significant personalization options, which has helped to develop the near-instant customer loyalty that the repeat sales reflect. After you electronically sign the NDA and complete a simple buyer verification process, we will disclose the domain name of the website to you.

The demand for affordable custom tailored products saw a surge in 2018. A huge benefit of this store is that in addition to offering traditional measuring options (which is to say having a tailor measure for fit), the store offers an electronic measurement option, based on a short questionnaire and custom algorithm, which has a 97% fit accuracy. All of which makes the site easy to use, and decreases the barriers to purchasing. There is, of course, an annual cycle causing demand to be higher in certain months, but the demand looks to be holding steady.

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Marketing and Traffic

As noted above, this site has relied largely on word of mouth referrals (both traditional referrals and on social media), leaving paid advertising as a huge potential growth area. Beyond the direct traffic, this site has already begun to pick up several page one rankings in Google for specific search terms. In the Google Analytics screenshot below you'll see that Organic Traffic grew in the past three months (January - March '19) by 55% (click the image to view a larger version in a new tab).

 In addition to the growing organic traffic, there are several important things to note from the above report:

  • The organic bounce rate (measuring the percentage of visitors that only see one page on the site) is just 37.87%, meaning the large majority of visitors are staying on site and shopping.
  • The average visitor spends 3 minutes and 47 seconds on the site, almost three times as long as the average visitor duration for most eCommerce sites.
  • The average visitor looks at 5.28 pages on the site, a very high number. It's quite uncommon for a site to have such a high pages-per-session number.
  • Organic traffic in this timeframe has seen an outstanding conversion rate (when compared to other high-end clothes sites) of 1.62%. 

The above numbers are referred to as User eXperience (UX) metrics, which are one of the biggest (if not THE biggest) Google ranking factors. The site is doing extremely well across the board for these UX metrics. These metrics are in large part why this site has built its organic traffic so quickly, and Bottom line: The site's organic rankings should continue to climb due to its strong UX metrics, leading to more and more free, organic traffic over time. 

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Growth Opportunities

As a fairly new site, this store has already proven a success but has only begun to scratch the surface of its long term potential. There are several areas that should help to immediately increase revenue:

  • Facebook / Instagram Advertising: The current owner has tested some retargeting advertisements to boost conversion rates, but has yet to launch any paid advertisements to build traffic. The site boasts high-quality product photos and would lend itself well to visual advertising channels.
  • Public Relations / Influencer Advertising: This store would benefit greatly by developing brand recognition. Hiring a PR agent or contacting social media influencers directly would be an ideal way to grow this store's brand increasing its reach drastically with highly targetted potential customers.
  • Increase SEO Rankings: This site, as mentioned above, has already begun building a solid foundation for organic traffic. Expanding the content on the site - creating useful high-quality guides or lists should help to supercharge these existing rankings, and begin pulling in new audiences. 

Store Operations

This business requires only a few hours per week to run at the existing level. The current owner handles the following tasks weekly:

  • Marketing email: 30 minutes
  • Place orders: 1 hour
  • Customer service: 1 hour
  • Fulfillment & Shipping: 1 hour
  • General admin: 1 hr 30 minutes
  • Total Time Estimates: 5 hours weekly

These are, of course, approximate numbers and vary depending on orders and demand. But it remains a very low labor store at the current levels. And many of the activities would be easy to outsource as it grows. 

This store has amazing upsides and is easy to run. The current owner is selling because after nearly ten years in the custom tailoring industry he's decided he wants to move on and wishes to use the proceeds to move into a new direction.

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Included with the Sale

The sale includes all of the following...

  • The primary domain name and website (including all textual and graphical content)
  • All supplier accounts
  • All social profile accounts
  • Customer list & mailing lists

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    Buying Process

    You can make an offer (or express your interest in being part of a buyers group) for this highly profitable online business here.

    Once an 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 a back-up offer exceeds the original accepted offer, the seller is obligated to sell to the original buyer whose offer was already accepted.)

    During this due diligence period, we'll work closely with the buyer(s) and seller to complete due diligence. Among other things, this will include doing one or more live screen-share web conference meeting (s) to verify all financial information by reviewing the store admin panels, 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 Begin Due Diligence

    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.

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