All prices in USD
$250,000
  • Avg. revenue /month
    $23,381
  • Avg. sessions /month10,366
  • Avg. profit /month
    $7,000
  • Inventory value
    $60,000

Business Story

Why this business was started

My wife and I started the business as we could not find any good leather bags on the market which had great quality which we could afford. We either found designer bags with a huge price tag or cheaply made products with bad materials that fell apart. There was a gap in the market for well designed bags made from quality materials which would last a lifetime and not break the bank - so [PRIVATE INFO] was born. In the beginning we started small with some key styles and went to lots of shows to prove concept and get direct feedback from customers. This was successful so we sold via a mixture of wholesale and e-commerce but we concentrated on wholesale as this is what we knew. As the brand has developed we have transferred to direct to consumer and as a result we catapulted the online revenue in 2020 by 2.5x to $750,000

The reason of selling this business

We have decided to sell the business as we have been in the fashion industry for nearly twenty years and would like a change. My partner and I love developing new products and since having three young girls we are looking to do more work in the baby/Children’s industry. We want to try something different and new whilst leveraging our skills as brand designers and entrepreneurs.

What's involved in running this business

[PRIVATE INFO] has been selling bags since 2014 so we have a loyal customer base and good brand presence. We currently generate traffic through a mixture of organic and paid advertising. We create brand awareness via our blog articles as well as our facebook and instagram social feeds and actively creating content such as videos for paid social generating great brand awareness. Once we have traffic going to the site we capture these leads through email sign ups and add them to our email database so we can retarget these customers through both paid advertising and email marketing. We maintain our customers through good communication and email flows as well as news updates and new releases. We run loyalty offers to our VIP customers through email marketing (Klaviyo) and for new customers offer other products they may also be interested in. We get product and customer journey feedback through our reviews app Loox and monitor online behaviour with Hotjar so we are constantly looking at ways to improve our customer experience and optimise conversion rates.

This business was founded: over 6 years ago
Time to run this business: approximately 14 hours per week

Traffic and Performance

  • Avg. revenue /month
    $23,381
    Verified
  • Avg. sessions /month10,366Verified
  • Avg. profit /month
    $7,000
  • Inventory value
    $60,000
  • Profit Margin20%
  • Avg. sales /month350
Other details about profit: For the last twelve months we have sold direct to consumer so you can see that our 2020 revenue was increased x2.5 from 2019 as we have concentrated on our e-commerce performance.
Last 6 years revenue
  • $1,683,398
  • Revenue data comes directly from Shopify and cannot be edited by the seller
    Last 6 years traffic
  • 746,422Visits
  • Traffic data comes directly from Shopify and cannot be edited by the seller

    Expenses

    • Shopify plan
      $79
      /month
    • Inventory warehouse
      $2,548
      /month
    • Domain
      $60
      /year
    • Referral candy, Loox, hubbox, facebook feed, gem pages, pre-order management, fera product reviews
      $260
      /month
    • Facebook, IG, Adwords
      $8,000
      /month
    • Canva, Quickbooks, Upworks
      $300
      /month
    • Agency fees for marketing , bank fees, accounting fees
      $4,899
      /month

    Sale Includes

    • Physical inventory

    • Logo and branding assets

      We have all of our assets in various formats in Google docs or we are happy to send via any other file sharing apps.
    • Personal support after sale

      We are happy to offer support for one month after the sale via email, telephone, Skype, Zoom.
    • Domain

    • Product photos

      Please see our site for product pictures these again are already in Google docs or we can supply by other file sharing apps.
    • Social media

    • Suppliers

      We have an extremely good and long term relationship with our supplier so this would be easily transferred to the new owner if required.
    • Mailing List

      8,000subscribers

    Seller‘s Advice

    How to grow this business

    We have seen a fantastic increase in revenue (2.5x) since going D2C last year and spent the last twelve months really concentrating on paid advertising in particular facebook and IG advertising. This not only puts you in front of hundreds of thousands of potential buyers creating great brand awareness and has contributed to over 50% of 2020 total revenue. To continue to scale its vital that this continues as well as pushing the organic sales through more traditional campaigns such as blogs, news, journals and social feeds. To continue to scale, the email database needs to be increased (currently 8k) by getting sign ups through competitions and joint brand ventures. We have a good conversion on email marketing making up 17% of total revenue with the lowest cost of acquisition from all sales channels so this is a channel that needs to be pushed more heavily. This has increased from 5% to 17% in one year so with some more work this should achieve 25% of total revenue.

    Skills to have

    As you will be buying a brand that is already established and we can advise what products sell in high quantity I would say the most important skills are digital marketing and content creation. These can be done in house or by many freelancers or agencies. Other skills which are going to really help are website management (good at Shopify), customer service and having a sharp eye for good aesthetics/design.

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