SOLD: Massage & Spa Tables Dropship Ecommerce Store
SOLD: Massage & Spa Tables Dropship Ecommerce Store
Up for sale is an easy-to-run dropship eCommerce store that sells USA-sourced massage tables and spa tables. Over the past 6 months (February - July 2018), the store has averaged $7,117 of revenue and $671 of net profit per month. The site ranks on Page 1 of Google for 57 search phrases, which are collectively searched for about 4,760 times per month in Google, driving a decent (and increasing) amount of free organic traffic to the store each month. See the Rankings and Traffic section below for more details. Over the past 6 months (February - July 2018), the store processed 98 orders with an Average Order Value (AOV) of $436. With a gross margin of 18.5% (after COGS, shipping and merchant fees), this means the average order generates ~$81 of net profit. Not only does this mean you have a large profit margin to work with in PPC advertising, but it also means you don't have to process very many orders each month to generate a healthy profit. On average, the owner only has to process ~16 orders per month. He currently spends about 8-10 hours per week operating the store. The owner, who is a long-time member of Store Coach, is selling the store for a couple reasons... First, he's in the process of launching a new (unrelated) product under another business and needs capital to place a bulk order. He also owns another dropship store (in an unrelated niche) that has been gaining steam the last few months, and he'd like to devote more of his time and attention to that business.
- Niche: Massage & spa tables (sign NDA for more info)
- Store Model: 100% dropship eCommerce
- P&L Period: February - July 2018 (6 months)
- Avg Monthly Gross Revenue: $7,117
- Avg Monthly Net Profit: $671/month
- Average Order Value (AOV): $436
- Average Profit Per Order: $81
- Average Orders Per Month: 16
- Page 1 Google Rankings: 57 keyword phrases collectively searched for 4,760 times per month
- Monthly Visitors: 2,186 per month
- Age of Site: 1 year, 3 months (May 2017)
- Time Requirement: 8-10 hours per week
ASKING PRICE: $15,000
The seller's asking price for this store is $15,000. Here is how the asking price was calculated...
February - July 2018 Net Profit: $4,025 / 6 to Yield Average Monthly Net Profit: $671 x 24-Month (2x Annual) Earnings Multiplier: $16,104 Rounded Down To: $15,000 (closer to a 22-month multiple!)
P&L Statement and Financial Information
Following is the P&L Statement for the most recent 6-month period (February - July 2018). Click the P&L image to open a full-size version in a new tab.
The current owner will of course give the eventual buyer the opportunity to do a live "screen-share" web meeting and jump into the store admin panel, payment accounts, Google Ads and Microsoft Bing accounts, Google Analytics, etc. (as well as view supplier invoices) to verify and confirm all of the figures shown in the P&L above. But here is a screenshot of the sales report from Shopify to corroborate the revenue...
About the Niche & Suppliers
As explained above, the store sells several of the top brands of USA-sourced massage tables, spa tables and associated accessories. The domain name of the site will be disclosed only to serious potential buyers who first sign an NDA, which you can do electronically here. The demand for the product line is extremely stable, as you can see from the following Google Trends screenshots (which show search data for the United States over the past 5 years)...
The product catalog currently contains approximately 380 products from 7 of the top brands available from USA manufacturers/wholesalers. The seller will assist the buyer with either taking over his existing reseller accounts with each of the suppliers or with providing personal introductions to assist the buyer with setting up new reseller accounts (if the supplier doesn't allow the buyer to just take over the existing reseller account).
Rankings and Traffic
In the 15 months since its launch, the store has already built up some fairly strong organic rankings in Google. The following table shows rankings data from SEMrush.com as of the listing creation date:
|Rank in Google||# of Keyword Phrases||Combined # of Monthly Searches|
After you sign the NDA below, we'll be happy to provide the SEMrush.com rankings report for the site, from which the above data was derived. Here's a screenshot from Google Analytics that shows the store's increasing organic traffic trend over the past six months (February - July 2018).
While rankings-based "Organic Search" traffic is on the rise and accounted for over 30% of total traffic in July, it's far from the only way the current owner drives visitors to the store. Paid advertising (primarily Google Ads, but also Microsoft Bing) accounted for 43.2% of total traffic over the six months, and direct traffic (i.e. people who know the site's domain name and navigate directly to the site, likely because they've visited the site and/or placed an order in the past) accounts for a remarkably high 25.2% of total traffic. Organic traffic (from the keyword rankings discussed above) is the 3rd largest traffic source, accounting for 22.9% of total traffic over the past six months (but just over 30% of traffic in July, as organic rankings and traffic continue to rise over time). Here's a screenshot of the Google Analytics Acquisition Overview report, which illustrates the traffic breakdown over the past 6 months...
Finally, here's a screenshot of the Audience Overview report from Google Analytics for the same 6-month period...
The owner typically spends 8-10 hours per week running the store (at its current operating level reflected in the P&L above). Here's a list of the core operating tasks he performs...
- Processing Orders - When a new order comes in, he forwards the order information on to the appropriate supplier. Then, once the supplier notifies her that the order has shipped, he updates the order status in the store admin panel and forwards the tracking information to the customer.
- Customer Service - This includes responding to emails (mostly using templated emails), taking (and returning) phone calls, live chatting with customers (occasionally), processing occasional refunds, etc. (Note: There have only been 4 total refunds in the entire 15-month history of the site, and there haven't been any chargebacks at all.)
- Writing New Articles - The current owner has historically written one new article per month, which has helped the store achieve the organic rankings it has (which are clearly improving over time).
- Managing the Product Catalog - This includes adding new products, updating pricing (occasionally), etc.
- Analyze and Tweak PPC Ad Campaigns - Every couple of weeks, it's a good idea to spend a few minutes analyzing the PPC campaigns' performance and modifying them as needed.
- Bookkeeping - The necessary evil. :-)
As part of the sale, the current owner will train the buyer on all aspects of running the business. This will include up to 15 hours of "live" training (via web meeting, webinar, Skype, phone, etc.) as well as 30 days of email support.
Following are a handful of growth opportunities to take this store to the next level...
- Add Top 2 Brands of Massage/Spa Tables - When the current owner built this site about 15 months ago, he was unable to establish reseller (dealer) accounts with the top 2 brands of massage/spa tables due to the site being brand new. Both of these manufacturers told him to check back with them "after one year," which it has now been. He's been planning on reaching out to them again (now that the site has established pretty good rankings, is getting a fair amount of traffic, and has a 15-month history of sales and profits) but hasn't done so yet. The buyer should be able to immediately reach out to these top 2 manufacturers and set up reseller (dealer) accounts with them and then add all of their products to the site. Adding these best-selling brands and products to the site should provide an immediate boost to sales and profits.
- Expand PPC Advertising (and Use Product-Specific Bidding) - The current owner is currently only spending ~$523 per month (on average) on paid advertising campaigns. The vast majority of that monthly spend is on Google Shopping ads (aka Product Listing Ads, or PLAs), with very limited spend on Google search ads and Bing ads. In addition to optimizing the current paid advertising campaigns (by using product-specific PPC bidding, audience-based bid adjustments, etc.), the buyer could no doubt increase sales and profits by increasing the ad budgets on existing campaigns as well as adding several new campaigns, including: 1) Google remarketing ads, 2) Bing remarketing ads, 3) Facebook remarketing ads, 4) Facebook/Instagram ads, 5) Pinterest ads, and several others. The current owner is currently barely scratching the surface with regard to PPC advertising opportunities.
- Perform SEO on "On-the-Verge" Keyword Phrases - As noted in the Rankings and Traffic section above, the site has 57 "top 10" rankings in Google. These Page 1 rankings account for the majority of the free, organic traffic the site gets. Just imagine how much more organic traffic the site would get if the 132 keyword phrases for which the site currently ranks 11th - 20th (which are searched for 9,040 times per month) were moved up to be top 10 rankings. Or imagine if the 160 keyword phrases for which the site currently ranks 21st - 30th (which are searched for 47,700 times per month) moved up to be Page 1 rankings. A little SEO effort could go a long, long way as marginal rankings improvements could sky-rocket traffic!
Included with the Sale
The sale includes all of the following...
- The domain name and website (including all textual and graphical content)
- Transfer of all supplier accounts (or introductions and assistance setting up new accounts, if applicable)
- All social profile accounts associated with the website
- The customer lists (comprised of 230+ past customers and opted-in newsletter subscribers)
- 30 days of support to train you/your employee on how to run the business, place orders with suppliers, maintain the store, etc. (first 15 hours via phone or live webinar/screen share, then Skype/email support after that)
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Disclaimer: Store Coach, Inc. is acting as the broker of the sale of this website/business. The website/business owner is 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 owner.
TABLE OF CONTENTS
- P&L and Financial Information
- About the Niche & Suppliers
- Rankings and Traffic
- Store Operations
- Growth Opportunities
- Included with the Sale
- Buying Process
- Submit an Offer or Inquiry
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