FOR SALE: Themed Print-On-Demand (POD) Dropship Ecommerce Store
Averaging $3,829 Net Profit / Mo
This store has a 4-year history of consistent traffic, revenue, and profits. Over the past 12 months (Feb 2019 - Jan 2020), it has averaged $18,753 revenue and $3,829 net profit per month. It sells a variety of themed Print-on-Demand (POD) items including clothing, housewares, art, phone cases, and much more. It is 100% drop-shipping based with automatic order fulfillment in place. This means every item in the catalog is drop-shipped directly to the customer after they order, so there's no need to pre-purchase large quantities of products, stock/warehouse inventory, or deal with shipping out orders.
This store is heavily focused on charitable giving (within the theme), highlighting the positive impact that every order has throughout the site and on each product page. This has produced an extremely loyal customer base, with a ~24% returning customer rate over the past year.
- Niche: Themed Print-On-Demand (POD) Products (please sign NDA to begin due diligence & get additional information)
- Store Model: 100% dropship eCommerce
- P&L Period: Feb 2019 - Jan 2020
- Store Launch Date: May 2016 (~4 years old)
- Avg. Monthly Net Revenue: $18,753
- Gross Profit Margin: 59.0% of revenue
- Avg. Monthly Net Profit: $3,829
- Net Profit Margin: 20.4% of revenue
- Owner Time Requirement: 8-10 hours per week
ASKING PRICE: $135,000
The seller's $135,000 asking price was calculated as follows...
Feb 2019 - Jan 2020 Total Net Profit: $45,945
x 3.00 Annual Earnings Multiplier: $137,834
Rounded Down to: $135,000
P&L and Financial Information
Here is the P&L Statement for the most recent 12 months (Feb 2019 - Jan 2020). Click on the image to see a larger version of the P&L in a new tab.
As you can see in the P&L above, the store has had several amazingly profitable months. Revenue and profits are usually very closely tied to ad spend. In the months that the owner (who is extremely busy with several other projects) has spent a decent amount of time to create and manage ads, revenues and profits have soared. The current owner is turning his attention back to the Facebook ads and has pushed those back into live status for February.
The store's gross profit margin of 59.0% (after accounting for product costs and shipping costs) leaves room for significant advertising options. The current owner has primarily focused on Facebook ads, though he launched some Google ads last year and has worked to scale those up. With all expenses (including advertising) accounted for, this store boasts a solid 20.4% net profit margin.
Donations to charities within this store's niche have been made for ~1.3% of net revenue per quarter (as you can see in the P&L above). This exact amount is not disclosed on the site; instead, the store advertises what the charities are able to accomplish based on the customer's order amount.
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, paid advertising portals (including Google and Facebook), Google Analytics, etc. to verify and confirm all of the figures shown in the P&L above.
About the Niche & Suppliers
As already noted, this store has an immense catalog of Print-On-Demand items (over 15,000 SKUs) which provide a great deal opportunity for audience targeting. Further, order fulfillment is 100% automated. Suppliers are automatically notified of orders and ship products directly to the customer, saving significant processing time.
For the benefit of the eventual buyer, the specific products the store sells as well as the domain name of the site will only be disclosed to serious potential buyers who first sign an NDA (which you can do electronically below).
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, 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.
It’s worth noting here that if you were to start using a cash rewards credit card (such as the Capital One Spark Cash credit card, you could get 2% cashback on virtually all business purchases, significantly increasing your bottom line.
Marketing and Traffic
The following screenshot from Google Analytics (GA) shows the traffic breakdown for the period Feb 2019 - Jan 2020. (Click on the image to see the full-size version in a new tab.)
About 68% of traffic during the past year came through social media (primarily Facebook followed distantly by Instagram). While the current owner has sent out some marketing emails, given the customer loyalty to this store, ongoing email campaigns would be a huge growth opportunity.
The current owner estimates that he spends 8-10 hours per week running the store at its current operating level reflected in the P&L above. One reason the current owner is able to spend so little time operating the store each week is that he has automated order fulfillment. Here's a list of the tasks the current owner performs himself:
- Customer service emails
- Managing ad campaigns
- Managing social media profiles
- Increase Email Marketing Efforts - The current owner has done very little in the way of email marketing. With the proven customer loyalty built into this store, regular emails to the 50,000+ past customers could be a huge revenue source without considerably increasing store expenses. Most online retail sites can generate somewhere between 30 to 40 cents of revenue per email recipient per month. If utilized properly, this list could generate an additional $15,000 to $20,000 of revenue per month.
- Add Content and Influencer Marketing - This store is well branded, and stands out due to its charitable giving and focused theme. With this target audience providing relevant content would be an excellent way to generate free or low-cost new leads outside of traditional paid marketing. Additionally, there are thousands of "influencers" (people with tens/hundreds of thousands of followers) relevant to this market who could promote this store in return for free products, or payment (often either a fixed fee or a percentage commission).
- Expand Catalog to Include Consumable Products (and offer subscriptions) - Within this store's niche, there is a host of consumable products that could be offered. Paired with the loyalty derived from the store's charitable giving, those could lend themselves to offering customers a monthly subscription service. These types of programs are a great way to create a returning revenue source that isn't dependent upon ongoing advertising spend.
- BONUS OPPORTUNITY! Start Using a 2% Cash-Back Credit Card for Virtually All Expenses - As mentioned above, the current owner has been using a travel rewards credit card to earn airline miles for personal use. If you were to instead switch over to using a 2% cash-back credit card (such as the Capital One Spark Cash credit card), the business would instantly become even more profitable than it already is. If you were to charge the COGS ($10,580/month), advertising costs ($9,743/month), and Shopify fees/subscriptions ($190/month) to a 2% cashback credit card, you'd instantly add ~$410 of profit to the bottom line every month.
Included with the Sale
The sale includes all of the following assets/accounts:
- The domain name and website (including all textual and graphical content)
- All social profile accounts associated with the site (including Facebook, which has 100,000+ followers, Instagram, and Pinterest)
- All customer lists (comprised of over 50,00 past customers)
- All supplier accounts
- 30 days of support to train you/your team on how to run the business, manage the ad campaigns, etc. (first 30 hours via phone or live webinar/screen share, then Skype/email support after that)
- Note: The seller will certainly sign a non-compete as part of the Contract of Sale.
You can make an offer for this highly profitable eCommerce store here. We'll 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 5-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 5-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 a live screen-share web meeting so you can review financial information, the store admin panel, payment accounts, sales reports, traffic reports in Google Analytics, supplier invoices, etc. We'll also send you the Contract of Sale agreement for you to review. Once the Contract of Sale 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.
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.