All prices in USD
$700,000
  • Avg. revenue /month
    $22,735
  • Avg. sessions /month69,805
  • Avg. profit /month
    $18,000

Business Story

Why this business was started

Took a sabbatical from work and wanted a project to occupy my time. Have wanted to explore dropshipping for a while and saw an ad for Oberlo, so decided to see how far I would get branching out and using it.

Always worked in fashion, usually women's so entering in a niche I know reasonably well.

The reason of selling this business

To take time away from work and start a family.

What's involved in running this business

Managing social media, sourcing new items to sell, order fulfilment via an automated third party app.

This business was founded: almost 3 years ago
Time to run this business: approximately 20 hours per week

Description

General description

**PERFECT OPPORTUNITY FOR BLACK FRIDAY** in 2019, on track to achieve $650,000 in revenue with gross profit of around $200,000 and net profit of 17.9% with no e-mail marketing.

Incredible opportunity to buy a unique dropshipping store before Black Friday that has become a brand in its own right.

We are known for very on trend items with categories including tops, skirts, pants, sets, shoes, bags and accessories. Our items and shoppers are trend-led but quirky.

Total revenue of just under $1m since its inception in 2017, with around $600k generated within the last 12 months.

In 2019 so far (as of October 10th) we have had in excess of 1.1 million visitors to the website and a 13.85% return customer rate. Selling to 77 countries, our main territories are the UK, France, Spain, US and Germany. Our customers are predominately women 15-29 but male fashion influencers have continuously shopped with us.

Initially focused on social media growth and reputation, we built and grew the store with no budget and transitioned to using Facebook advertising within the past eighteen months resulting in a surge of monthly sales and orders. We have also generated over $80k in orders using an affiliate scheme managed by a third party app.

Black Friday Weekend 2018 was a turning point for our store. Without increasing the advertising budget, we increased our sales from $7239 (the same period over the previous week) to $21000 and have found a steady increase in sales, conversion and retention of customers from this period.

Products are sourced on AliExpress with the ordering and fulfilment organised via Oberlo. We generally focus on product from <10 particular supplies with occasional supplemental items added to the store. We have cultivated great relationships with these sellers who prioritise our orders and assist in any issues/refund requests that fall outside of AliExpress protection.

We have a presence on Twitter, Tumblr, Pinterest, Instagram and Facebook with 75,000 + Instagram followers and 25,000+ followers on Facebook. Our content is almost exclusively images of influencer customers wearing their items for social proof.

Working with Tapcart, we have an iOS and android app with a 4 star+ rating. In the last six months, we have had 30,000 downloads. We currently have over 20,000 push notification subscribers. The app has generated $150k in revenue despite no paid advertising or promotion. We also use Sezzle which allows our North American customers a buy now pay later option and have installed iDeal, Bancontact, SOFORT Banking, and Przelewy24 for many of our European customers.

We currently accept returns and exchanges. Our return rate is less than 5%.

Why should someone buy this store?

Please note that Shopify doesn't include app sales within total revenues, but we can provide proof where necessary.

A fantastic opportunity for someone to acquire a well established, well followed successful fashion retailer before BLACK FRIDAY. We have cultivated an inclusive social media presence where our content is predominately provided for us in abundance by customers effectively allowing us to use influencer marketing daily with no budget.

This is a store run by two people of limited experience which in 2019 is expected to have a turnover of $650k in 2019, so this is a great opportunity for anyone who has the infrastructure and capacity to grow an already thriving business.

How can the future owner improve the business?

The main focus for any future owner would be to increase the conversion rate. With the correct experience and strategy, this would be more than possible given that the current conversion rate is 0.85%.

We have been successful in a small amount of scaling using low budget Facebook and Instagram ads. Simply, the more we spend on advertisements, the more return on investment we make. The store has consistently grown month by month and has huge potential to grow given the right budget.

We have not paid to use influencer marketing. There is HUGE potential for growth if this is utilised. We are consistently approached by a variety of micro-influencers, 100k+ influencers and many celebrities with seven figure follower counts. Most recently, an actress from American Horror Story and a European reality TV star with a huge reach.

We do not send e-mail marketing so this is a huge area to take advantage of.

It is possible to switch from an affiliate scheme to a loyalty points scheme that also allows for the use of affiliate codes being used by influencers to generate money off purchases. The switch will save around $260 per month.

What work have you put into the store?

Cultivating good dropship relationships with certain suppliers allowing a more personal and accepting experience (advance warning of low stock, lenient policies on refunds and resending items etc).

Branding, social media growth and purchasing a theme outside of Shopify templates.

Creating an managing an iOS and Android app.

Traffic and Performance

  • Avg. revenue /month
    $22,735
    Verified
  • Avg. sessions /month69,805Verified
  • Avg. profit /month
    $18,000
  • Profit Margin33%
  • Avg. sales /month1,300
Other details about profit: Increased spending on ads equals an increased monthly revenue. Currently spend roughly $1300 on FB/IG ads which results to around $15000 in sales a week. Black Friday 2018 eclipsed the previous years sales led to consistently higher monthly revenue every month since in comparison with the previous period. February 2019 sales higher than expected despite the heavily delayed shipping and reduced advertising due to the Chinese New Year. Also experienced no negative deviation in any customers wanting to cancel their order due to the wait. PLEASE NOTE: some discrepancies are appearing on our performance graph. Eg November 2018 revenue was actually $69000 because we also sell through an app listed on iOS and Google Play stores. We can provide evidence/limited access to our backend under the right circumstances as proof of our higher income. ***AVERAGE MONTHLY REVENUE IS NOT CORRECT ON SHOPIFY, BUT AGAIN, PROOF CAN BE PROVIDED***
Total revenue
  • $750,251
  • Revenue data comes directly from Shopify and cannot be edited by the seller
    Total traffic
  • 2,303,569Visits
  • Traffic data comes directly from Shopify and cannot be edited by the seller

    Expenses

    • Shopify plan
      $79
      /month
    • Domain
      $10
      /year
    • Affiliate scheme, Oberlo, currency converter, order tracking and other apps
      $800
      /month
    • Facebook and Instagram ads
      $5,200
      /month
    • Malabi backgorund eraser
      $10
      /month

    Sale Includes

    • Physical inventory

      Not Included
    • Logo and branding assets

      All promotional images, e-mail domain and all photos. Passwords to accounts handed over.
    • Personal support after sale

      Not Included
    • Domain

    • Product photos

      All product photos used.
    • Social media

    • Suppliers

    • Mailing List

      Not Included

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