Private listing #643531
This E-commerce business is a 11-month-old dropshipping Shopify store which has been getting the major part of its traffic via Facebook Ads but also organically. The business is making between 10k to 20k per month with about 35%-40% margin and with an average monthly profit of about 5k-10k.
Reason for Selling: Being the co-founder and CEO of a fintech Startup, I don't have the time to manage the store anymore. I am looking for a new owner to take over the business as my current priorities requires me a lot of time. Being very busy lately, the website and ads have consequently not been updated for a while but still have delivered very consistent results. Since I am selling the business due to time constrains, I strongly believe that this opportunity is more attractive and offers a higher scalability and growth potential than any store with comparable figures for the following reasons:
- Organics traffic: The website occupies the 1st Google search result around the world for several key words and a lot of sales simply comes from organic traffics. Those can be verified from the Shopify reports.
- SEO: The website occupies the full first page of Google when the name of the brand is entered on Google search & Image.
- Social proof: There are absolutely zero negative reviews over the internet as opposed to most other dropshipping business. The business count numerous customers expressing their happiness by sharing their pictures through social media.
- Payment Gateway: Chargeback rates are below 0.4% and I only pay 2.3% commission (negotiated) while being able to accept a large type of payment methods such as Mastercard, Visa, American Express, Apple Pay etc. PayPal is also active, but the commissions for this method are much higher as this cannot be really negotiated. I will connect the next owner to our payment gateway company representative so you can instantly accept all kind of payment with the lower commission rate on the market. (the gateway is integrated with an API so your customers are not redirected.)
- Returning / Conversion rate / Cart abandoned: The store is converting very well with an average 3%. The average purchase ticket is about $60 for an item which has a $24 purchase price.
- Branding & Identity: The web design is unique as the initial template has been fully customized by professional developers and UX designers. Everything has been creating in order to create a unique identity.
- Domain: The domain is a short and premium “.com” one with a name which is easy to remember. This represent scalability opportunity in terms of branding.
- Influencer & Partnerships: Many influencer and even media with a large amount of engaging audience has contacted us and expressed their interested in working with our business. Those collaboration did not take place yet as I haven’t responded to their proposal due to lack of time. The whole list of niche specific influencers/bloggers that has personally contacted us will be provided. Many customers have been also turned into advocate by receiving specific coupon that they can provide to their friends.
- Selling Price: Due to time constrains, I have decided to sell the business below the market value when compared to other stores delivering the same kind of results.
The business operates mainly in modern street-fashion clothing and jewelry niche. I have been working with fully trusted and reliable suppliers (with dropshipping agreements). The business also generates incomes from commission earned via the Admitad affiliate program with a AD2 Level (highest trust level). This will give an average 8% cash-back on all purchases.
I am not planning to sell the business just for the purpose of getting rid of it. I will make sure that the next owner will be able to obtain the same result with the currently established process. I will also help you to appropriately scale the business to the next level. Therefore, I will provide all necessary support to achieve this. If you are interested but not sure about scaling with Facebook, I will give you 2 weeks of coaching on FB ads for free and give you insights on how you can scale the business. Additionally, I will help you in managing the campaigns in order to increase sales. Of course, the Facebook campaigns, creative, pixel are all part of the business.
In order to achieve the current sales, one-part time VA is enough for placing orders and responding to customers. Currently, I am personally not touching it much in order to get the current sales as most processes are automated and the store has been running on the same low budget ads for several months while delivering consistent results. Obviously, more resources will be required if you would like to scale. However, the average time spent on managing the store is much lower than most other businesses which has been able to provide the same figures. There a just a few Shopify apps running such as cross-selling apps and cart recovery which holds a success rate of around 15%.
Customers are from all around the world but about 28% of them are US based and 37% from Western European countries. Concerning Social media accounts, I will provide several Facebook pages with a combined follower of approximately 22k and Twitter account with 1-3k followers. Regarding the leads, there are about 3200 specific emails collected which are used for LAA audience and re-targeting and will be transferred to the new owner.
This offers represents a perfect opportunity for anyone who wants to start his own fashion-related clothing and/or jewelry business with instant results. The valuable pixel data, leads and influences name collected also provide the opportunity for instant scaling. In addition, the design of the website is unique as the initial template has been fully customized by professional developers and UX designers. Finally, in term of SEO, the domain is at the very top of Google search result for several keywords and the main collection and other pages are displayed on Google’s first page.
I have received a quote from EF evaluating the business between the 100k-130k range. However, according to their condition I cannot list the business on their marketplace as the business is less than a year old. As a result, I believe that the current listed price is way below the original and comparable market price. If you still believe that the advertised price isn’t fair compared to another comparable store, just let me know and I am ready to negotiate. However, I still believe that the advertised price when compared to all the competition that I was able to see before deciding to sell.
***IMPORTANT UPDATE*** The original selling price was about $50K! However, the business selling price has been heavily discounted to an unexpected event explained below:
About some time ago, I have decided to switch the registrar company to my friend’s web-hosting and domain registry company in order to benefit from a private domain registry. However, whether it was done on purpose or not, the transition was not done properly. On one side, the domain was hosted using “Cloudfare” which is not supported by Shopify and in addition, the dns records were in fact not redirected properly on Shopify’s host as it was supposed to be. As a result, once the previous registrar company decided to cut my dns redirection (about 2 months after the change was made), the website suddenly went done. It took me awhile to understand where the issue was coming from. I had several discussions with Shopify support assistant as they were not able to assess the issue either. (I have attached screenshots of some conversations that I with Shopify support).
Furthermore, even after when the website started to work again, there was still issues related to the dns record as the domain was not opening from many places or IP addressed. This kept happening until I have decided to switch back to the initial registrar company. Overall, it took about 4-5 weeks until the domain starts to work properly again. As the Facebook ad campaigns were still active during the event, the ads performance have been heavily penalized as people were continuously redirected to an error page when clicking on the ads.
As a result, ads started to under-perform until becoming unprofitable. Currently, I have stopped all ads due to time constrains and the store is now generating most of its profit organically. (June was about $3.5k revenue and $2.2k profit). Therefore, this event has caused me some serious financial loss. Not only because I was continuously paying for Facebook ads while the website was down, but I also had a considerable shortfall and important decline in valuation now that I have stopped almost all paid advertisements.
I have seriously though about opening a legal case against the person whom caused me this as this was a serious lack of professionalism and may possibly even be done one purpose. I would like to specify that every single event and figures will come with proof since all conversation and data can be tracked. Before the event, I had the intention to sell it for more than $50k as all third party valuation was providing me an estimated value above that. I have also leaved all previous interest unanswered as the situation has changed. However, now that I have to accept this situation I am open for discussion and will evaluate any offer. For those that can have a good understanding of the associated problem and cause of sudden under-performance, I believe that this could be a good opportunity to acquire a business at a discounted price.
I am fully available to answer all kind of question and provide you with any additional information you may need if you are serious about acquiring a new e-commerce business.
Financials and traffic
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.
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