All prices in USD
$87,599
  • Avg. revenue /month
    $7,174
  • Avg. sessions /month1,280
  • Avg. profit /month
    $1,100

Business Story

Why this business was started

[PRIVATE INFO] is focused on helping fellow boaters purchase the small watercraft and accessories they desire in a low stress environment through an informational and easy to navigate web store. The business has a strong identifiable brand in the small boat segment while striving to provide detailed product information and outstanding customer service. The brick and mortar boating stores are known for high-pressure sales tactics that are driving customers to online stores in increasing numbers.

The reason of selling this business

[PRIVATE INFO] is searching for an enthusiastic buyer that understands the boating industry and is ready to grow an established web brand. The current owners have a new project about to set sail and are ready to support new owners in their Wee voyage to success.

What's involved in running this business

[PRIVATE INFO] is not a hands-off business and it does require providing customer service in order to keep customers happy and telling their friends and family that [PRIVATE INFO] is fantastic! Products on [PRIVATE INFO] are expensive, which means lots of revenue/order (Average Order Value “AOV” in 2019 is $1,817 and in 2018 it was $1,477), but it also means that customers will sometimes have questions before they pull the trigger on an order. The website has lots of information on the products but customers sometimes just want to hear a human voice, or get an email from a real person, before they authorize a credit card purchase in the thousands of dollars. This doesn’t necessarily take a lot of time but it does mean you cannot ignore the business for days on end without risking lost sales.

The current advertising campaigns are all running in Google Ads, no Facebook ads at the moment, and have been well optimized with current ad spend of about $262/month total (2019 average per month through 10/31). During the same period, sales were $116,396 resulting in a Return On Ad Spend (ROAS) of $43.43. For comparison, total add spend in 2018 was $2,801 and sales were $85,548 resulting in ROAS of $29.54. That is a 47% increase in ROAS! The current advertising campaigns only need to be updated when new products are added to the store. There is always room to learn in the fast moving area of PPC advertising but it is clear that the current campaigns are performing very well.

To continue growing the stores revenue, additional products need to be added and this will require research, negotiating with the suppliers, and then updating the website. Orders are currently fulfilled in a somewhat manual process but this is based on the supplier; there is the possibility of automating some if not all of these fulfillment processes.

This business was founded: almost 3 years ago
Time to run this business: approximately 7 hours per week

Traffic and Performance

  • Avg. revenue /month
    $7,174
    Verified
  • Avg. sessions /month1,280Verified
  • Avg. profit /month
    $1,100
  • Profit Margin11%
  • Avg. sales /month8
Other details about profit: There is opportunity to increase profit by adding higher margin products to the portfolio, utilizing up-sell techniques, and expanding shipments outside of the U.S. This is a somewhat seasonal business, obvious by looking at the revenue chart provided by Shopify, but sales can happen at anytime. July is the busiest month and December has typically been the slowest in terms of sales. Due to the somewhat long purchasing journey by customers in this segment, the winter does provide an opportunity for customer to perform product research. So questions can be expected to come in from customers even during the slower sales months. This is also an opportunity to publish technical blog articles during the winter months as well to help answer expected purchasing questions.
Total revenue
  • $236,729
  • Revenue data comes directly from Shopify and cannot be edited by the seller
    Total traffic
  • 42,251Visits
  • Traffic data comes directly from Shopify and cannot be edited by the seller

    Expenses

    • Shopify plan
      $30
      /month
    • Employees
      $1
      /month
    • Domain
      $12
      /year
    • App for product accessories
      $5
      /month
    • Google Ads
      $262
      /month

    Sale Includes

    • Physical inventory

      Not Included
    • Logo and branding assets

      Logo files and other branding assets (social media cover photos, etc) will be transferred by dropbox or another electronic cloud-based tool.
    • Personal support after sale

      In order to support a successful transition of the business to a new owner the following: An initial 2-day review of the business (Shopify backend, Google Analytics account, Google Ads account). For 2 months after the sale, support via email, with 3-day turnaround times, and weekly 1 hour telephone calls at pre-arranged dates/times. Support will not include training on the fundamentals of Shopify, Google Analytics, Google Ads, Google Merchant Center, Facebook Ads, other e-commerce tools, tax advice, or legal advice.
    • Domain

    • Product photos

      Product photos are currently in the Shopify back-end of the website but they will also be transferred by dropbox or another electronic cloud-based tool.
    • Social media

    • Suppliers

      Not Included
    • Mailing List

      800subscribers

    Seller‘s Advice

    How to grow this business

    To grow this business I would: 1. Grow the product portfolio. 2. Improve control of the fulfillment process by taking some inventory of the best performing products. 3. Invest in social media PPC advertising.

    Skills to have

    Basic business and marketing skills will be found to be useful but these days most, if not all, specific technical tasks can easily be outsourced to highly skilled individuals (e.g. website design changes, analytics, etc). Starting with a functioning business that is generating consistent revenue reduces in urgent need to learn new skills. Any skills that are determined to be needed can be added as time permits.

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