- Avg. revenue /month$3,025
- Avg. sessions /month5,783
- Avg. profit /month$621
- Inventory value$9,288
Hi there, my name is Daniel and I've been running East Africana for 2+ years now. We are a jewelry store that sells country map shaped necklaces among other products. Here are some quick details:
- $115k+ in total revenue
- 20% net profit and 60% gross margin (95% gross excluding fulfillment fees)
- Customers in 25 countries (72% North America and 22% Europe)
- Consistently maintain a 16% repeat purchase rate
- 20% revenue comes from organic search alone
- Completely outsourced operations and fulfilment (Trello based manuals included in sale)
- Takes me, the owner, 30 minutes per week to run the store (freelancer does the other 2.5 hrs/week)
This is my second eCommerce store and it has been a huge learning experience. And now I’m looking for someone to continue our great work.
- East Africana has proven that selling map necklaces to very niche market can be very successful. There is a huge potential in expanding the product line and targeting people from specific countries to order. Just to give you an idea, our necklaces’ gross margin is on average 95% and we’re constantly getting request for new country map necklaces from people.
Operationally the business takes 30 minutes of my time to run per week. I built a system for everything that is required to run the business from how to answer different types of customer service questions, how to upload products, how to pay suppliers, how to launch ads and pretty much how to run the business. It’s basically a detailed manual. And it has allowed me to hire freelancers to run the business completely. If I went away tomorrow, absolutely nothing will change with the business.
These set of documents, manuals and how-tos will be included in the sale of the business.
Add more necklaces and make this the only product on the site. Over time, I’ve found that this is priced perfectly to be an impulse buy. By expanding the map necklaces, you open yourself up for a lot more business.
This is the number 1 most requested thing we get. More map necklaces, more map necklaces.
- We’ve primarily used Facebook ads to drive almost all the revenue that you see, but it has had other benefits like increasing our search ranking, email subscribers and just improving our brand recognition that has generated even more revenue. You can improve this by diversifying. Try the following:
- Influencer marketing, when done right this can be a huge ROI
- Improve email marketing funnels for converting subscribers
- The number of sales we make has always been correlated to how often we post on instagram. Think of this like free money, post pictures...get sales. Create posting schedules in bulk and be very current on events affecting your audience (even if you expand out of the current one, which is recommended).
I've always believed that product comes first and then marketing. East Africana nailed both of these. We made our first $50,000 using the basic site theme Shopify offers and product pictures from my living room. But we’ve improved things since then, here they are:
- Theme - Parallax theme and this is out of the box, no custom code on it
- Photos - Professionally shot using a professional model too
- SEO - We’re #1 search results for many keywords and organic search is 20% of revenue
Here are some apps we use:
- MailChimp - We currently have around 4000 subs
- Abandonment Protector - Cart recovery email app that costs $8/m but has recovered 10% of all abandoned orders, which is $12,000 (best ROI ever)
- Loox Photo Reviews - We get hundreds of customer pictures, so we standardized it to go on the site and improve conversion with this app
It’s all pretty simple, our product connects with our clients and we run ads to the site and post on Instagram often. All this improves everything.
Traffic and Performance
- Avg. revenue /month$3,025Verified
- Avg. sessions /month5,783Verified
- Avg. profit /month$621
- Inventory value$9,288
- Profit Margin20%
- Avg. sales /month72
Other details about profit: Profits are a reflection of how much of the business is automated. Almost everything is outsourced, which costs more but it provides us more time which we've used to improve the business. Currently gross margin is 60% and if we were to look at as only the direct cost of product sold that margin is 95%. We keep healthy margins and were able to cut our product cost by 60-70% in 2018 by negotiating and finding better suppliers.
- Shopify plan
- Inventory warehouse
- Shopify apps
- Fulfillment and other expenses
- Physical inventory
- Logo and branding assetsGoogle Drive
- Personal support after saleWe can do calls or messages and I'll provide it for 2-3 months until you get setup. There is also a massive Trello board that contains a series of instructions on how to do everything for the business and this will be shared.
- Product photosGoogle Drive
- Mailing list4,000subscribers
- Expand the products and possibly the business name to be more encompassing
- Sell a map necklace for more countries around the world
- Target that audience and you'll do amazing!
- Also, try new marketing tactics that I outlined in the listing.
Considering how niche we are, you can easily follow these suggestions and grow revenue by up to 10X. Think about it, we only cater to 3-4 countries and we've done $110K+, imagine if you expanded the target audience.
No. I don't even wear jewelry and look how far I've taken the business. Just need determination and you'll be good.
P.s. I grew and sold my last business that sold coffee, I knew nothing about coffee either.
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