All prices in USD

Private listing #169661

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$49,500
  • Avg. revenue /month
    $14,100
  • Avg. sessions /month14,464
  • Avg. profit /month
    $7,077
  • Inventory value
    $108,227

Business Story

Why this business was started

I started this business after seeing an opportunity to dive into a market which was dominated by only 1 company and it's product. This company does not advertise online (by way of paid ads) and instead focuses on larger national retail deals.

This meant that there was no exposure on Facebook so unlike most e-commerce ads these days, this was fresh, new and exciting for potential customers.

So I created a similar product using a factory in China but with my own branding and designs to test whether I could penetrate the competitions market, and the short answer is yes I can!

The reason of selling this business

I am selling this business as it was always part of the plan, I am raising funds for a much larger project. Spotting this opportunity, I wanted to create something of value which would be sold and taken forward with a new owner relatively early on.

This is a fantastic chance to get in at the start of a successful business with zero competition on Facebook ads.

The sale of this business includes all inventory which is just under 10,000 units ($139,000 worth of inventory).

This business is perfect for a beginner just getting their feet into e-commerce as it's a very simple setup, or it's perfect for an experienced marketing individual/team to take this to the next level and scale very quickly.

What's involved in running this business

It's a very simple yet profitable business. There is only 1 product with 4 SKU's.

Update: I have now added 2 congruent products which are sourced & drop shipped using Silkroad. These are currently only used for upselling after the customer buys the low priced main product and is 100% automated with 5-8 day shipping to the US.

All operations are currently handled by myself, spending no more than 6 hours a week.

Customer service - email, facebook, ad comments

Fulfilment - all fully automated and handled by a fulfilment company in Glasgow, UK. Sometimes have to fix wrong addresses input by customers

Ads - Creating new or managing existing adsets

Factory - ordering new stock, coming up with new designs

I've created various video ads, which have done very well (5k+ comments) etc which the buyer is welcome to have.

This business was founded: 7 months ago
Time to run this business: approximately 6 hours per week

Traffic and Performance

  • Avg. revenue /month
    $14,100
    Verified
  • Avg. sessions /month14,464Verified
  • Avg. profit /month
    $7,077
  • Inventory value
    $108,227
  • Profit Margin31%
  • Avg. sales /month800
Other details about profit: Initial testing for this product began in July, where I did $22,606.58 in revenue in just 2 weeks. I then spent the next few months building relationships with factories in China, designing and getting samples made from various ones before settling on a product and placing an order for 2,000 units. Advertising then began on 28th October and since then have done $67,236.93 in sales, selling out the initial batch of 2,000 units. A new order for 10,000 units had been placed in November which arrived in stock 18th December. Also note that I had to turn off ads/stop scaling in order to maintain a steady flow of orders to ensure stock did not completely run out before the next batch of 10,000 units arrived. Now they have arrived at our fulfilment partner and scaling has resumed. Also please note that all orders go through Zipify OneClickUpsell which means that the Shopify data collected via the Exchange App is skewed, it also took me 3 months to design, sample and produce the product so there are 3 months with no sales. So the average monthly revenue where the store was active is in fact $21,519.47 and a 31.31% profit margin which is $7,077.51 per month (accurate at time of listing). Also please note that PayPal transaction fees for my account is really high due to me being based in the UK and accepting currency in USD, I am hit with additional cross border rates which means my transaction rates total 4.9% + $0.30 per transaction. A US based seller would be able to use a new PayPal account and significantly reduce the fees paid to PayPal.
Total revenue
  • $98,698
  • Revenue data comes directly from Shopify and cannot be edited by the seller
    Total traffic
  • 101,254Visits
  • Traffic data comes directly from Shopify and cannot be edited by the seller

    Expenses

    • Shopify plan
      $29
      /month
    • Inventory warehouse
      $1,500
      /month
    • Domain
      $10
      /year
    • Facebook Ads
      $8,833
      /month
    • Apps
      $181
      /month
    • Transaction Processing Fees (PayPal & Stripe)
      $1,014
      /month

    Sale Includes

    • Physical inventory

    • Logo and branding assets

      Transferred via Dropbox.
    • Personal support after sale

      I will train the new owner on the concept of this product and how it works I will train the new owner on the management of the 3PL software I will train the new owner on existing FB Ad strategy and what I would do going forward I will introduce the new owner to the supplier. Factory has expressed they would continue to work with the new owner.
    • Domain

    • Product photos

      Transferred via Dropbox.
    • Social media

    • Suppliers

      Existing supplier relationships will be transferred to the new owner.
    • Mailing List

      6,612subscribers

    Seller‘s Advice

    How to grow this business

    Focus on "Cleanfluencer" marketing for more video and photo content to use in video ads

    Work with factory to come up with new and interesting designs/colours

    Continue ad spend on Facebook and refine audiences/targeting

    Scale on Facebook Ads with LLA/Custom Audiences

    Explore YouTube ads and it's effectiveness

    Pitch the product to local/national stores

    Increase profitability by using cheaper fulfilment warehouse (I use them because of existing relationship), US based PayPal account (reduce transaction fee from 4.9% to 2.9%), building a strong brand to reduce the reliance of FB ads, create a viral video/meme to increase organic sales, add more congruent upsells to increase LTV of a customer and increase profit (recently added 2 products drop shipped via Silkroad and they are being taken very well), make better use of email marketing.

    Skills to have

    Facebook marketing - current sales are all coming via FB Ads

    Management of 3PL software - I will provide training, it's very simple.

    Basic Shopify skills - add products/edit products if needed

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