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$220,000 USD

Private listing #989879

Appears in Stationery and office supplies , Established stores, Inventory, Australia, Victoria, Large Business, Highly Profitable businesses, Private listings

General description

Our business specialises in sales of one particular versatile product that is used by many individuals and businesses. (Stationery & Office Supplies was the closest industry heading we could find).

Our Shopify store is 4 years old, with excellent figures.

It operates out of Melbourne but could easily be moved to another location in Australia. Somewhere in the Australia Post Express Network would be highly recommended.

The business needs someone who is ready to grow it. It is growing organically at about 45% year on year (despite us trying to keep it small i.e. next to no advertising, marketing or social media).

The work itself is a simple import, store, sell, pack and dispatch model. No special skills are required. You can run it yourself and take all of the profit, hire staff to do all of the work for you and take the cream off the top (there's plenty of fat in the profits) or anywhere in between.

We started this business because we wanted something simple and manageable we could run from home and keep in the family. Our aim was to have a healthy work / life balance.

Unfortunately it has just become too much for us.

Financials and traffic

Profit per month and profit margin figures shown here are from the 2016-17 financial year but the margin is expected to be about the same and sales ($) have increased by 44%. As soon as our tax figures for the 2017-18 financial year are in, we will update this section.

There are opportunities for much greater profits, by doing more of the work yourself, with volume purchases (cheaper rates and reducing fixed costs) and reinvesting a portion of the profits back into advertising and marketing.

Average profit/month

$8,160 USD

Average overall profit margin

71%

Average number of sales/month

365

Value of inventory

$25,000 USD

Recent revenue

$477,643.00 USD

Recent traffic

78,784 Sessions

Revenue and traffic data from this graph is calculated by Exchange and can not be edited by the seller. Average profit, profit margin and number of sales are provided by the seller. Learn how Exchange calculated this data.

Business Expenses

You could easily run this business from home and save on warehouse expenses, rent and contract labour. You'd also get the benefit of tax deductions for using a portion of your premises for business.

Expense item

Cost

Shopify plan

$79.00/month

Subscriptions (ie. Mailchimp, apps)

$15.00/month

Advertising (ie. Adwords, Facebook ads, etc.)

$15.00/month

Inventory warehouse

$350.00/month

Employees (Including contractors and freelancers)

$2,500.00/month

Domain

$1.00/month

Inventory

Inventory value can vary between about USD$20,000 to $30,000 depending on where we are in our order cycle. USD$25,000 of inventory is included in the price of the sale. A stocktake will be done at handover and an adjustment made to factor in current inventory value.

Basic warehouse fittings (value about $500) are included as well.

Located in Melbourne

Willing to ship inventory

Willing to transfer relationships with suppliers

What’s included in the sale

  • Physical inventory
  • Logo and branding assets
  • Social media accounts
  • Personal support after sale
  • Domain
  • Product photos

Social Media

Mailing list

2,436 subscribers

Social media followers

445 people

Q & A

Do you work with any employees, freelancers, or contractors?

Staff have all been contractors, including picking and packing, labour to help with delivery of shipments and ferrying stock from storage.

Why should someone buy this store?

Proven growth track record! Opportunity! Flexibility! Lifestyle! This business is ripe for the picking. Read on!...

All the hard work has been done. This is a well established business ready for you to walk in and start making money. We are ramping up into the busy time of year where you'll see by the graphs above, that sales (and profits) boom.

Sales growth in the last financial year was 44% and our repeat clientele 32%* so the business can only continue to grow. And it has outgrown us (even without advertising!)

If you'd like to accelerate growth, there are plenty of ways to do it, none of which we've taken advantage of (more on that later).

Currently we run the business out of our home lock up garage. We have one person who does the pack and dispatch in the mornings (about 4 hours a day, Monday through Friday) and another who handles phone enquiries, emails, tweaks the website, looks after the bills, etc. This person is "on duty" 9 - 5, Mon - Fri but the work is flexible, sporadic and they are able to work remotely (whilst doing other things). The morning person could easily handle phone enquiries. Packing can be done at any time of the day or night. You could house the whole thing at home or you could run it out of different premises. Initially, we ran it out of a Self Storage facility. It's all very flexible.

*In actual fact, this figure is higher but as Shopify does not allow merge of customers (yet!) some customers have multiple accounts and therefore are classed as new customers with each account when they are actually repeat purchasers.

How can the future owner improve the business?

If you want to grow the business, all you have to do is Advertise! For starters, we have a proven Google Adwords campaign already set up. Simply flick the switch and start generating more sales.

We've rank extremely well organically on Google so money spent on advertising in the 17-18 financial year was a poultry $214.87! ($182.24 for the previous year). Advertise to increase sales.

We have practically ignored Social Media. Get tweeting and spend some time on Insta. Not really our thing (too old!), but perhaps it's yours? Or perhaps you have a child who needs a job?

Send regular emails out to the customers who have subscribed. We have rarely reached out to our subscribers and our default has always been "opt out" at checkout because 1. we don't like to be pushy and 2. we only wanted genuinely interested customers on our database. Anyone can buy fake followers.

Create promotional campaigns. There are so many fun ways to create a buzz around a brand. We just literally did not want the extra business.

We have identified two other complimentary products you could sell to lift the average transaction value. There are undoubtedly more.

What work have you put into the store?

Our website is unique, current and well refined. All images look professional. The proof is, it works well. Conversions are 12.38%.

We've been selling online for over 4 years and our sales graph shows solid growth.

Thanks to our significant investment in excellent SEO, we rank organically #1 to #3 on Google for the most important keywords and terms.

Systems processes are sorted! They're all streamlined so the task is time efficient and there is no guess work. Customers receive the same quality product and service every time. Errors and stock arriving damaged are next to non-existent.

Our corporate image is fun, friendly and fashionable.

Our suppliers know what we expect (we're very fussy) and are stable. We've trained them well over the years. Also our eggs are not in one basket. We have negotiated good prices.

We have developed good relationships and have contract rates with our shipping companies.

We are passionate about customer service, so our customers are happy, keep coming back and spread the word. We have well around 800 verified online reviews with an average star rating of 4.9/5.

Stock levels are appropriate. We have simple systems that let us know what to order when.

We have created a few videos that are online and help drive traffic to the store.

We have invested in a proven Google Adwords campaign which can be reactivated at any time.

How many hours does it take to run this business per week?

40 hours

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