FOR SALE: 2 Y/O Dropship eCommerce Store Selling Niche Personal Safety Gear
Up for sale is a 2-year-old dropship eCommerce website that sells niche personal safety gear. Virtually 100% of the store's visitors come from free, organic traffic thanks to the site's 283 "top 10" Google rankings. Over the past year (calendar year 2022), the site did $88,335 in gross revenue (an average of $7,361 per month) and generated $13,570 in net profit. The store is incredibly easy to run, only requiring around 5 hours per week.
- Niche: Personal safety gear (please sign the NDA to see the domain name)
- Store Model: 100% drop-shipped by 2 US-based suppliers
- P&L Period: Trailing Twelve Months (TTM) of January - December 2022
- Business Age: ~2 years (launched in February 2021)
- Avg. Monthly Gross Revenue: $7,361
- Avg. Monthly Net Profit: $1,131
- Gross Profit Margin: 19.7% of revenue
- Net Profit Margin: 15.4% of revenue
- Top 10 Keyword Phrases: 283 (49,520 searches/month)
- Owner Time Requirement: ~5 hours per week
Asking Price: $40,000
The seller's $40,000 asking price was calculated as follows...
Trailing Twelve Months (TTM) net profit: $13,570
x 3.0x Annual Earnings Multiplier: $40,710
Rounded down to $40,000
P&L and Financial Information
Here is the P&L Statement for the calendar year 2022. Click on the image to see a larger version of the P&L in a new tab.
As you can see, the site has a 19.7% gross profit margin. And with such low operating expenses, the net profit margin (after all expenses) is only about 4% lower at 15.4%.
Another thing worth noting is that the seller hasn't been spending anything on paid advertising... zero! He's been content to just let the store generate sales naturally from its strong organic rankings and referral (click-through) traffic from other websites. The new owner could no-doubt increase sales by launching various pay-per-click campaigns.
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 BigCommerce store admin panel, payment accounts, Google Analytics, etc. to verify and confirm all of the figures shown in the P&L above.
About the Market & Products
As noted above, the site sells various personal safety products. The exact product line (along with the domain name of the website) will be disclosed once you have signed the NDA below.
Here is a Google Trends screenshot showing the demand for the product category (as measured by Google search volume) over the past 5 years in the USA...
As you can see, search volume has been very steady over the past 5 years. Experts expect the niche to grow an average of 7.2% per year over the next 5 years.
The store has right around 100 products, all of which are sourced from 2 suppliers that are both based in the United States (and ship directly from their warehouses in the United States).
Dropshipping is an ideal store model that requires virtually zero working capital. You don't pay your suppliers for products until after a customer has placed an order on your site and paid you for it. For example, a typical sale would look like this... 1) A customer places an order on your site and pays you $100. 2) You forward the order information on to the supplier and pay them $80 (meaning that you keep $20 of profit). 3) The supplier ships the order from their warehouse directly to the customer.
Traffic & Marketing
Virtually 100% of the site's total traffic is either free, organic traffic or direct traffic from prior visitors who know the site's domain name and come directly to it, as you can see from this Google Analytics screenshot for the year 2022 (note: Google Analytics wasn't installed until early August):
The following report from ahrefs.com (one of the most widely-used tools for analyzing organic rankings and keyword data) shows how the site's organic keyword rankings and organic traffic have grown since the site was created in February 2021...
As of mid-January 2023, ahrefs.com reports that the site has the following keyword rankings in Google.com (USA)...
|Google Rank||# of Keywords||Searches/Month|
In total, that's 283 "top 10" keyword rankings that get a combined 49,520 searches per month on Google.com (USA). See the 'Growth Opportunities' section immediately below regarding the bold/italicized numbers in the table.
Top Growth Opportunities
Following are the site's top growth opportunities:
Start advertising - As noted above, the seller hasn't done any paid advertising for the site. Aside from a little bit of email marketing using the store's ~2.1k customer/opt-in mailing list, all of the store's traffic is free, organic traffic.
Continue SEO efforts - If you look at the keyword rankings table above, the site currently has 56 keyword phrases (which get a combined 8,200 monthly searches) ranking in the top 3 in Google. This is great, but it's just the tip of the iceberg. There are another 70 keyword phrases (which get a combined 24,830 monthly searches) for which the site currently ranks #4 or #5. With just a little bit of additional SEO efforts, these 70 keywords could move into the top 3 and literally quadruple the amount of free, organic traffic the site gets (not to mention the additional 157 keyword phrases for which the site currently ranks #6 - 10).
Wholesale orders - Several organizations and companies have found the site and placed large/bulk orders on their own. The current owner has considered making the effort to actually reach out to similar organizations (of which there are a lot) to proactively generate sales, but he hasn't taken the time to do so. This is a big opportunity that could result in continuous bulk orders long-term.
Expand product line - Between the 2 suppliers the store uses, there are hundreds of additional products that could easily be added to the website to make it more of a super-store. Google clearly "likes" the site, so it's likely that many of these additional product pages would rank quite high in Google shortly after being added to the site.
- YouTube and other social media - Early on, the owner created several YouTube videos to educate people about the niche and highlight certain products in the catalog. This was quite effective in a) setting the store apart from its competitors by offering unique content, information and education, and b) driving sales. The last several months, though, the owner has been distracted with a new project and hasn't posted any new videos or content. He recommends ramping these efforts back up. Additionally, the new owner could use Instagram, Facebook and other social media platforms as well.
Included with the Sale
The sale includes all of the following...
- The domain name and website, including all textual and graphical content of the site
- The BigCommerce account (and associated apps)
- Both supplier accounts (2)
- All customer lists and email lists associated with the business (approximately 2,100 contacts/subscribers)
- All social media accounts and content (YouTube, Facebook, Twitter, etc.)
- 30 days of support to train you/your team on how to run the business, process orders, manage ad campaigns, and pursue growth opportunities
You can make an offer for this online business here. We will 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 10-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 10-day due diligence period, we'll work closely with you and 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, Google Analytics, 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 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.
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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.