FOR SALE: Sports Nutrition Supplements Site + Social Accounts w/ 600k Followers
Here are the TOP 10 things you should know about this business...
- It sells its own brand of unique private-label sports nutrition supplements. No other business sells these products!
- From 2018 to 2019, the business did $267,043 in revenue and $133,700 in net profit, as you can see in the P&L and Financial Information section below.
- The business has a phenomenal 50.0% net profit margin. That means that for every dollar of revenue the site brings in, 50 cents makes it to the bottom line and into the owner's pocket!
- In 2019 (and 2020 so far), the owner has spent exactly $0 on advertising. Over the past 16 months, 100% of sales are from free direct traffic (accounting for 40% of revenue), free social traffic (33% of revenue) and free organic traffic (24% of revenue).
- The business' key asset (which is of course included in the sale) is its highly valuable social accounts (particularly Instagram), which have over ~588,000 followers. Simply making occasional posts on Instagram and the other social accounts drives A LOT of traffic and sales.
- The store's Average Order Value (AOV) is $95.34, which means that the owner pockets an average of $47.67 of net profit per order.
- 100% of sales are generated on the stand-alone website. The owner hasn't even begun selling on Amazon, Jet.com or other online marketplaces. This is just one of several huge growth opportunities (along with actually advertising the business/products).
- Operating this business is incredibly easy! The owner currently only spends 2-3 hours per week on the business (but used to spend 15-20 hours per week when he was actively working and growing the business). This is possible because the two Contract Manufacturers (suppliers) handle both manufacturing and fulfillment/shipping.
- In 2019, 32.4% of revenue came from happy return customers coming back to the site to purchase more products.
- The sale includes a 20,000+ person mailing list, comprised of both customers (around half) and newsletter opt-ins (around half). Significant improvements could be made in the realm of email marketing, as discussed in the Growth Opportunities section below.
Continue reading below for more information about this extremely valuable and upward-trending business.
The owner is selling the business because he started up his own gym last year and is devoting virtually all of his time and energy on getting it off the ground and running it. (He also recently became a first-time father and wants to spend more time at home with his family.)
- Niche: Sports Nutrition Supplements (please sign NDA to begin due diligence & get additional information)
- Store Model: Retail eCommerce
- Inventory Model: Fulfillment Center
- Business/Website Age: ~4 Years (Started in May 2016)
- Avg. Monthly Revenue: $11,128/month
- Avg. Monthly Net Profit: $5,571/month
- Gross Profit Margin: 54.1% (after COGS, shipping/fulfillment & merchant fees)
- Net Profit Margin: 50.0% (after ALL expenses)
- Avg Order Value (AOV): $95.34
- Weekly Time Requirement: 2-3 hrs/week to maintain, 15-20 hrs/week to grow
ASKING PRICE: $199,000
The seller's asking price for the business is $199,000, calculated as follows...
2018-2019 Total Net Profit: $133,700
/ 24 Months: $5,571 per month
x 36-Month (3.0-Year) Multiplier: $200,556
Rounded Down to: $199,000
P&L AND FINANCIAL INFORMATION
Here are the P&L Statements for 2018 and 2019 (click on the images to see full-size images in a new tab):
Here's a summary of the key numbers from the 2018 and 2019 P&Ls (combined)...
- Avg. Monthly Revenue (net of refunds): $11,128
- Avg. Monthly Cost of Goods Sold (including product costs, shipping/fulfillment & merchant fees): $5,108 (45.9% of revenue)
- Gross Profit Margin: $6,020 (54.1% of revenue
- Avg. Monthly Expenses (total): $449 (4.0% of revenue)
- Avg. Monthly Net Profit (after all expenses): $5,571 (50.0% of revenue)
The current owners will of course give the eventual buyer 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, etc.
Following are screenshots of the 2018 and 2019 'Finances' reports from the Shopify store admin panel. Please note that the figures shown in these Shopify reports are in British Pounds (GBP), rather than in US dollars (USD). The figures shown in the P&Ls above and elsewhere throughout this listing have all been converted to US dollars, based on historical exchange rates.
One of the many impressive things about this business is the fact that 32.4% of its revenue in 2019 came from happy returning customers. This high return customer rate not only speaks to the fact that customers are happy with these supplements, but it also makes the business much more valuable given the existing customer base which will no doubt continue to place additional orders over the coming months and years.
As you can see from the Shopify report below, the site's Average Order Value (AOV) was £74.66 (which converts to $95.34 USD) in 2019. With a net profit margin (after all expenses) of 50.0%, this means the average profit per order is $47.67.
Finally, the Shopify report below shows a breakdown of sales by country in 2019. (Note: The report cuts off and doesn't list countries with less than £200 in revenue, just to keep the report from going on too long.)
As you can see, 46% of revenue is in the USA. UK accounts for 26% of revenue, the rest of Europe accounts for another 13.1%, and then the rest of the world makes up the remaining 14.9%. The CMs (suppliers) completely handle shipping and fulfillment worldwide.
ABOUT THE PRODUCTS & SUPPLIERS
First and foremost, it's important to know that the business has created its own brand of sports nutrition supplements. All of the supplements are 100% unique, custom products that the owner has formulated and created himself (with the assistance of the CMs he uses), complete with their own custom brand and labels. These products cannot be found on other websites or in other stores.
After you electronically sign the NDA, the owner is of course willing to disclose the domain name of his website and the brand name of his products to serious buyers.
The business currently has ~30 SKUs. The #1 best-selling product accounts for 37.0% of revenue, with the #2, #3 and #4 best sellers accounting for 24.2%, 7.7% and 5.8% of revenue, respectively. The next 10 best sellers each account for between 1% and 5% of revenue. Thus, sales are pretty well-diversified among the product catalog.
All SKUs are sourced from two (2) laboratories, both of which are located in the United Kingdom (UK). The business has an absolutely ideal set-up/relationship with these CMs, which will transfer to the buyer. In addition to manufacturing the products, the supplier also warehouses and ships the products as well! So they are essentially a drop-shipper in addition to being the manufacturer. This saves on lead times and shipping costs, and it also greatly reduces the risk of logistical errors.
Ordering products is very simple. The owners submit a Purchase Order (PO) about 10 days in advance. Inventory needs are calculated in a spreadsheet by using the previous 30 days' sales volume as a projection for future sales, and then subtracting the current inventory on hand (at the CMs' warehouses).
MARKETING AND TRAFFIC
The massive Instagram following (numbering over 588,000 followers) is the biggest marketing tool for the business, and it generates completely free traffic and sales! When the owner posts tips, info and stories on Instagram, his 588k+ followers see the posts, click on the links in them (and on the Instagram page), and then come and buy products from the store. The Instagram following (combined with past purchasers, which accounted for 32.4% of revenue in 2019) really drive the business.
As mentioned above, the owner hasn't done any paid advertising over the past 16 months. 100% of sales have been from free traffic sources, broken down as follows (based on revenue)...
- Free direct traffic - 40.3% of revenue
- Free Instagram traffic - 30.8%
- Free Google search traffic - 22.5%
- Free Facebook traffic - 2.2%%
- All other traffic sources are 1% or less
It's quite astounding that 40.3% of the site's total traffic is direct traffic (i.e. people who type the domain name of the site directly into their web browser). This means that 40.3% of visitors know the site's domain name and navigate directly to the site, likely because they've a) placed an order in the past, b) visited the site before, or c) heard about the site (by name). It's quite uncommon for an eCommerce store to have such a high percentage of its overall traffic be from direct traffic. This is indicative of the fact that the site has a very strong brand reputation and name recognition.
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|
After you sign the NDA below, you'll be able to download the Ahrefs organic rankings report to see full details about the site's organic rankings.
The owner only spends 2-3 hours per week maintaining the business. Back before he started his own gym and started devoting virtually all of his time to that, he typically spent around 15-20 hours per week on the business, primarily on strategy and growth tasks.
What makes this possible is the fact that both of his Contract Manufacturers (CMs) serve as both the manufacturer and the fulfillment center. So aside from periodically placing orders, the suppliers handle virtually everything with regard to the products: manufacturing, quality testing, warehousing and shipping.
As part of the sale, the current owners will train the buyer on all aspects of running the business. This will include up to 40 hours of "live" training (via web meeting, webinar, Skype, phone, etc.) as well as 90 days of email support.
- Start Selling on Amazon and Other Marketplaces - The owner has toyed around with the idea of selling on Amazon, Jet.com, Rakuten and other major online marketplaces since the inception of the business. But for various personal reasons (primarily his time constraints, inexperience selling on marketplaces, and not loving the idea of making Amazon and the other "big dogs" even richer than they already are), he's chosen not to sell on Amazon or any of the other huge marketplaces online. (To date, 100% of sales come from the stand-alone website). But selling on Amazon, Jet.com, Rakuten and other gigantic online marketplaces is an ENORMOUS opportunity for the right buyer to exponentially grow the business! Most supplement companies do the vast majority of their revenue on Amazon, thanks to its enormous audience of willing shoppers. Amazon and Rakuten are particularly exciting opportunities.
- Set Up an Affiliate Program - The sports nutrition market has dozens and dozens (probably hundreds) of bloggers, reviewers and other influencers, many of which have tens/hundreds of thousands of followers and/or websites that get boatloads of traffic. The new owner could grow the business exponentially by reaching out to these influencers and site owners and offering an attractive affiliate commission for all the sales they drive. Affiliate-driven sales would be very profitable, especially when you consider the lifetime value of the average customer (not just their initial affiliate-driven order).
- Start Doing Influencer Marketing - This is the ideal niche/product line to use "influencer marketing" to generate additional traffic and sales. There are hundreds of "influencers" (people with tens/hundreds of thousands or even millions of followers) relevant to this market who you could pay a fixed fee to do a "shoutout" for the brand/products, which could generate massive amounts of sales and turn into long-term customers who place additional orders down the road.
- Continue Releasing New Complementary Products - New product releases have historically resulted in an immediate bump in revenues/profits (simply by announcing the new product to the Instagram following and the 20,000-person mailing list), not to mention increased sales over the long run. Releasing new complementary products also expands the opportunity with affiliates, as each potential affiliate may be more interested in some products than others. The current owner has several ideas for new products (which he'll of course share with the eventual buyer).
- Increase the AOV by Implementing Post-Sale Upsell Capabilities - The owner has long planned on implementing a very powerful Shopify app that makes it possible to up-sell customers on additional, highly related products immediately after they complete their purchase. This way, you don't interfere with the customer completing their purchase as quickly as possible (by introducing other products to them before or during the checkout process)... but you make it really easy for them to add an additional discounted product or two to their order right after they complete their order. And the customer doesn't have to go back through the checkout process or provide their payment information again. For similar stores, this strategy has proven to be an incredibly effective way to increase the AOV and the store's profitability.
INCLUDED WITH THE SALE
The sale includes all of the following...
- The domain name and website (including all textual and graphical content)
- All images, videos, artwork and marketing materials
- Both Contract Manufacturer (supplier) accounts
- All social profile accounts, including Instagram (588,000+ followers), Facebook (12,000 followers), etc.
- Mailing list (containing over 20,000 emails, comprised of past customers and opted-in subscribers - approximately 50% each)
- 90 days of support to train you/your employee on how to run the business (including up to 40 hours of "live" support via phone or live webinar/screen share)
- Free lifetime membership to the Store Coach Academy (if you're not already a member), which is a $3,000+ value
You can make an offer for this highly profitable online business here. If the sellers accept 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 & GET MORE INFO
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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.