All prices in USD
  • Avg. revenue /month
    $63,953
  • Avg. sessions /month52,103
  • Avg. profit /month
    $11,100
  • Inventory value
    $83,270

Business Story

Why this business was started

I started my Shopify store as a means to make money as a stay-at-home mom. I love working from home and I love the flexibility to create my own schedule. I am fascinated by e-commerce and social media so this business was something fun to try. The drop-shipping business came with limited risk, and over the past 3.5 years, we have slowly grown into a hybrid drop-shipping/private label brand offering fast shipping from our Illinois warehouse to all 50 states and most countries. It's important to note that quality means everything to our customers so everything we drop ship now comes from reputable US-based lingerie brands.

2020 was spent elevating the brand. We now offer eco-friendly reusable silk gift wrap and a customer loyalty program. Literally everything I could think of to elevate our customer experience and brand presence was done. What we are seeing now is a 61% increase of returning customers compared to 2020. What an exciting time it is to take over Salt + Lace and scale leaps and bounds!

The reason of selling this business

This is the right time to sell because of the recent increased sales and interest in the brand. Selling my store will give me enough capital to invest in real estate and become a full-time stay at home mom. My youngest just started kindergarten last year and I would like to devote 100% of my time to creating a fun learning environment in the home. I'm really proud of the business I built and now I am ready to start a new chapter in my life. I believe the right buyer will know how to scale this business and improve profitability.

What's involved in running this business

My weekly tasks involve checking email, meeting with my various teams on Zoom, and running my social media. My Virtual Assistants (who live overseas) run the day-to-day customer service tasks and keep me free to do almost anything I want throughout the day. I only work when I want to, which is a couple hours a day and I schedule all my meetings on Thursdays to keep my week open and flexible.

We generate the bulk of our traffic using Facebook and Instagram Ads. Our traffic is highly targeted using look-a-like audiences and we have a 22.4% return customer rate (up 61% from last year). We maintain customer relations through our loyalty program, social media and email/SMS campaigns. We are constantly fine-tuning our funnel with retargeting ads and customized email flows through Klaviyo. We conduct customer and product research in the form of testing social media advertisements. Winning ads are rinsed and repeated across multiple lookalike audiences. We provide value with blog content related to our niche and promote the blog on Pinterest and then follow up with an email campaign to convert customers to purchase.

Much more could be said and I gladly look forward to discussing this at length and answering all of your questions.

This business was founded: over 3 years ago
Time to run this business: approximately 15 hours per week

Traffic and Performance

  • Avg. revenue /month
    $63,953
    Verified
  • Avg. sessions /month52,103Verified
  • Avg. profit /month
    $11,100
  • Inventory value
    $83,270
  • Profit Margin8%
  • Avg. sales /month1,496
Other details about profit: Our accountants use A2X and Xero accounting tools. Our P&L is cash and accrual based every month. Full details will be shared with serious buyers. July 2021 Update: Sales are up 26% YTD over last year, and Gross Profit up 53% over last year. June Google ads performance - Spend: $2,861, Revenue: $18,375, ROAS: 6.42x, Search CTR is excellent. June SMS performance - Spend: $400, Revenue: $15,308.19, ROAS: 38.3x. We spend the most in Facebook Ads (about 25-30K/mo) and our ROAs is lower and more difficult to know due to the recent iOS changes; however, the majority of our ad spend goes to Top-of-Funnel ads on Facebook/IG which allows us to feed our funnel with new cold audiences and retarget warmer audiences at middle and bottom of funnel. We are projecting $1.6M in sales in 2021 with approximately 133K in profit (8-9% profit margin). We believe the right buyer will have experience and ways of trimming costs and increasing AOV as there is so much potential for increased profitability. We are working on this now by legally adding our loyalty program's scripts to our order confirmation and shipping emails (the highest open rates of all emails sent to customers). We also use Zipify OCU for post purchase funnels and there is much to improve on using this app. Considering we generate 1200 orders per month, even a slight increase of $10 average per order of post-purchase profitability could generate and additional 144K profit per year which will increase profit margins to 17%. Note: we have an annual contract with our warehouse and loyalty/reviews program. Aside from those, our Google/Facebook/Pinterest/CRO marketing team is approximately 7K per month and is not on contract. If you already have an in-house team, you don't have to use them and you could potentially save the 7K/mo.
Total revenue
  • $2,686,025
  • Revenue data comes directly from Shopify and cannot be edited by the seller
    Total traffic
  • 2,188,364Visits
  • Traffic data comes directly from Shopify and cannot be edited by the seller

    Expenses

    • Shopify plan
      $299
      /month
    • Inventory warehouse
      $3,475
      /month
    • Employees
      $15,393
      /month
    • Domain
      $14
      /year
    • Klaviyo and GSuite
      $550
      /month
    • Facebook, IG, Pinterest, Google
      $46,000
      /month
    • Canva
      $12
      /month
    • Optional store apps
      $200
      /month

    Sale Includes

    • Physical inventory

    • Logo and branding assets

      We will transfer our Canva account to you which has our brand portfolio. This includes colors, logos and previous marketing assets designed for social media and the website. Our Canva account is $12/mo. All other media is saved to our shared google drive. We run three gmail accounts which will also be transferred to the new owner.
    • Personal support after sale

      If you require personal support I can make myself available to the new owner for any questions the first two weeks after the sale. I want to make sure the transition is smooth for you and for my entire team. I will co-join our team's weekly conference calls with you. I am here to help.
    • Domain

    • Product photos

      All reports (sales and inventory spreadsheets) and image/video content are saved on our shared google drive which the new store owner will have access to. All model, photographer and influencer talent we use will be made available to you as well.
    • Social media

      Total followers71,844subscribers
    • Suppliers

      We have three main suppliers in China, Hawaii and Florida. We also support two other US-owned, small businesses by stocking their products as additional gifts which can be purchased during the holidays. We will make sure you are introduced and that the transition is smooth for all parties. My customer service team, who you will acquire, is fully capable of communicating with our suppliers and can answer any questions you may have.
    • Mailing List

      48,899subscribers

    Seller‘s Advice

    How to grow this business

    I would continue to improve AOV. Efforts made this year have increased AOV by 35% compared to 2020.

    Improving conversion rate is a top priority. We recently launched a style/fit quiz to improve customer experience and product trust prior to checkout. There are only a few other brands in our niche doing this. We believe this sets us apart from our competitors and we are currently waiting on the results to see how much this has improved our conversion rates. I believe the right buyer will have more great ideas for increasing conversion rate. Our CRO team is at your disposal for implementing and analyzing split tests and heatmaps. All of this is reported to you each Thursday.

    I would work with a PR agency to get published in magazines and gain celebrity endorsement. These efforts would allow @saltandlaceintimates to be verified by Instagram/Facebook which leads to brand trust and potentially higher conversion rates.

    I would work to get Salt + Lace Intimates into retail stores. We are currently in one boutique store and we receive a lot of wholesale interest from boudoir photographers looking to add to their client closet as well as from lingerie boutiques. I believe wholesale is a great opportunity as a five-year plan.

    We also receive 10% commission on referrals made to our largest lingerie supplier. I would nurture that side of the business more by improving our marketing approach to buyers interested in wholesale.

    Previously, we shipped everything ourselves which was much more cost effective. I would consider moving back to a privately-owned warehouse space and hiring hourly workers to process orders and returns in order to save on 3PL costs.

    Skills to have

    I consider Salt + Lace 95% turn key! We are already contracted with experienced teams who handle our email marketing, SEO, Facebook, Instagram, Google, and Pinterest Ads, customer service, etc. A general interest in women's fashion or lingerie is a plus, but not required. If you don't want to run the social media and content creation, like I have done, I can give you a great recommendation for a social media marketing team. Ownership of Salt + Lace can be really hands off if you have the right teams in place. Largely, what it boils down to is making sure you are offering the right styles each season for the right traffic and existing customer base you already have. I will give you all the tools and winning strategies I've used to make you feel confident and thrive in your new business.

    Share

    ER
    Erin R.Current store owner
    Hello! My name is Erin. I live in Illinois with my family of four. I have a background in customer service and database management. I created Salt and Lace Intimates in 2018 as a means to work from home and quickly began joining every free webinar and Shopify Facebook group I could to learn this business. Never did I imagine my sales would grow over 253% my second year. This experience has taught me so much about putting the customer first and at the forefront of every decision we make to deliver a memorable and personal luxury product.

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