FOR SALE: Themed Jewelry Dropship eCommerce Store Making $7,232 Net Profit Per Month
Up for sale is a well-established, 4-year-old dropshipping based eCommerce store that sells themed women's jewelry. During the 12-month period September 2018 through August 2019, the store has averaged $40,022 in monthly revenue and $7,232 in monthly net profit.
Launched in October 2015, this store has a 4-year track record of quite stable traffic, revenue and profits, with amazing growth potential. The site boasts a 3.93% conversion rate and amazing customer loyalty, with returning customers making up ~36% of all revenue. This customer loyalty comes in large part by providing a portion of all profit to charity, which builds excellent goodwill. The charities that have been selected all match the store's theme.
- Niche: Themed jewelry (please sign NDA to see domain name & additional information)
- Store Model: 100% dropshipping-based eCommerce
- P&L Period: Sep 2018 - Aug 2019 (12 months)
- Store Launch Date: October 2015
- Avg. Monthly Net Revenue: $40,022
- Gross Profit Margin: 58.9% of revenue
- Avg. Monthly Net Profit: $7,232
- Net Profit Margin: 18.1% of revenue
- Avg. Monthly Sessions (Sep 2018 - Aug 2019): 42,139 (1,385 per day)
- Owner Time Requirement: 25-30 hours per week
ASKING PRICE: $215,000
The seller's asking price for this store is $215,000. Here is how the asking price was calculated:
/ 12 to Yield Average Monthly Net Profit: $7,232
x 30 Month (2.5 Annual) Earnings Multiplier: $216,960
Rounded Down to: $215,000
P&L and Financial Information
Here is the accrual-basis P&L Statement for the 12-month period Sep 2018 - Aug 2019 (click on the P&L image to see it full-size in a new tab):
* Merchant fees are calculated based on 4.4% of revenue. This figure is based on the site's Average Order Value (AOV) of $20.00 multiplied by 2.9% + $0.30 transaction fee, which are accepted industry standards.
** Charity Profit Share has historically been paid annually but is entered into the P&L above monthly as 1% of monthly net profit to reflect accurate monthly profit amounts.
The store was launched in October 2016 and has proven to be a stable monthly earner. Adding to this store's base level of monthly profit is the monthly subscription box product which provides a regular source of ongoing revenue.
The current owners estimate they spend a combined 25-30 hours weekly on this project between catalog expansion and marketing. That said, this store an excellent candidate for outsourcing much of that work if the eventual buyer was so inclined.
As part of due diligence, the eventual buyer will of course be given the opportunity to do a number of live "screen-share" web meetings to see the store admin panel, payment accounts, paid advertising accounts, Google Analytics, etc. to verify and confirm all of the figures shown in the P&L above. But following is the screenshot from the Shopify admin panel to corroborate revenue figures for Sep 2018 - Aug 2019.
You'll note in the screenshot below that a majority of the store's revenue is made up of shipping revenue, as opposed to product sales. This is because the store utilizes the "Free Products - Just Pay Shipping" model for much of its paid advertising. But revenue is revenue, regardless of whether it's classified as "product sales revenue" or "shipping revenue".
About the Niche & Suppliers
As explained above, the store sells various types of women's jewelry centered around a common theme. The catalog currently consists of over 600 products, most of which range in retail price from $5 to $25. The target audience for this niche is enormous, and the store has barely begun to scratch the surface of its long-term potential.
The product niche and the domain name of the store will be disclosed only to serious potential buyers who first sign an NDA, which you can do electronically here.
The suppliers for the store are very reliable and easy to work with. 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, you (or a Virtual Assistant) simply place the order on the supplier's website (using your customer's shipping address), and 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.
The seller will assist the buyer with either taking over his existing reseller accounts with the suppliers or with helping the buyer set up new reseller accounts with the same pricing and terms that the seller has been getting.
Marketing and Traffic
The current owners of this site have almost exclusively used Facebook to promote the store and its products. This leaves a host of other marketing avenues to explore to grow the store's profitability. The following screenshot from Google Analytics shows the traffic breakdown for the period Sep 2018 - Aug 2019. (Click on the image to see the full-size version in a new tab.)
Here are a few key takeaways and items to note from the above Google Analytics report:
- The store has averaged 1,385 sessions per day
- The store has averaged a very impressive 3.93% conversion rate, meaning that almost 4 out of every 100 visitors on the site place an order. Most eCommerce stores average around a 1% conversion rate (oftentimes lower), so a 3.93% conversion rate is very strong.
- The "Other" category shown in the above report is a little bit confusing. The majority of this traffic is in fact paid "Social" traffic coming from Facebook.
While the store does require Facebook ad management, you do NOT need to be an "expert Facebook marketer" to obtain the same type of results moving forward. The current owners will train you on how to monitor and further fine-tune the marketing campaigns during the 60 days of training included with the sale.
The current owners estimate that they spend 25-30 (combined) hours per week running the store at its current operating level reflected in the P&L above. One reason they are currently spending so much time per week has been tied to a few attempts made to grow the monthly subscriptions.
Many of the current weekly activities could be outsourced to low-cost VAs (and probably only increase the monthly cost by $100-$200):
- Accounting and bookkeeping
- Posting on Facebook
- Answering questions about the products on Facebook
- Monitoring advertising campaigns
- Overseeing the VA and ensuring high-quality work
The vast majority of sales on this store are derived from Facebook advertisements and follow-up emails. The store could very easily double (or more!) its average monthly profit over the next year or two by exploring the following growth opportunities:
- Influencer & Affiliate Marketing - This is the ideal niche/product line to use "influencer marketing" and/or affiliate marketing to generate additional traffic and sales. There are literally tens of thousands of related but non-competing sites and thousands of "influencers" (people with tens/hundreds of thousands of followers) relevant to this market who you could pay either a fixed fee or a percentage commission to send visitors to your site.
- Add 'Print on Demand' Items - This store has focused almost exclusively on jewelry to-date, but the theme and charitable giving make this an ideal target to expand with print on demand clothing and accessory products.
- Expand PPC Marketing - Facebook and Email marketing have been used extensively for marketing, but there are several other high-potential PPC marketing engines you will certainly want to use to further market the store, including: 1) Google remarketing ads (to re-market to previous visitors, similar to what the current owner has been doing on Facebook), 2) Product Listing Ads (PLAs), and 3) Pinterest, just to name a few.
- Expand Social Marketing via Videos - The current owners have relied on image-based advertising. Recent social media trends show that video advertisements tend to convert at a significantly higher rate. There are several free software options available that can convert images into simple slideshow style videos that could likely up the return on ad spend for the current Facebook marketing campaigns.
- Wholesale Program - Adding a wholesale (and/or an affiliate) program to the site could be an excellent way to either increase sales. The themed jewelry makes it a great target for many small retailers to carry in brick and mortar style shops, while the affiliate route could help drive more site traffic and sales.
Included with the Sale
The sale includes all of the following:
- The domain name and website (including all textual and graphical content)
- All social profile accounts associated with the site (including Facebook with over 230,000 likes)
- All customer lists (comprised of over 178,000 past customers)
- The newsletter opt-in mailing list (comprised of over 70,000 email addresses, which includes past customers)
- Transfer of all supplier accounts (or introduction and assistance setting up a new account)
- 60 days of support to train you/your employee on how to run the business, manage the ads, etc. (first 40 hours via phone or live webinar/screen share, then Skype/email support after that)
You can make an offer for this highly profitable eCommerce store here. We'll immediately present your offer to the seller. If they accept 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 this 10-day 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 meeting(s) so you can review financial information, the store admin panel, payment accounts, advertising accounts, sales reports, traffic reports in Google Analytics, supplier invoices, etc. We'll also send you the Asset Purchase Agreement (APA) for you to review.
Once the Asset Purchase Agreement 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.
Option to "Buy and Outsource"
If you're interested in acquiring this business (either on your own OR as part of a group) but don't have the time, desire or know-how to handle the day-to-day operations yourself, use the Ask a Question box below to learn how you can outsource 100% of the day-to-day operations to a full-service eCommerce operations company for a very reasonable operating fee. This allows you to reap the financial benefits of owning (or co-owning) a "cash cow" Internet business like this without having to operate it yourself. By outsourcing 100% of the day-to-day operations, you can own (or co-own) this business completely passively.
Sign NDA to Begin Due Diligence
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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.
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