All prices in USD
  • Avg. revenue /month
    $32,544
  • Avg. sessions /month45,858
  • Avg. profit /month
    $9,609
  • Inventory value
    $85,000

Business Story

Why this business was started

I was watching the Google Developers Conference in 2014 when they passed out Paper VR headsets (Google Cardboards) to the attendees. They open sourced the design, so I created Knoxlabs to sell Google Cardboards. I was one of the first and in under a day there were about 500 pre-orders. And then Google + other brands contacted asking me to manufacture for them as well and grew from there. In the last 6 years, Knoxlabs was able to manufacture about 3.5M headsets, create a new VR development platform from this and now has transformed into a full-fledged marketplace.

The VR world is very much wild wild west, there is so much to build and it is us super fun. Yet, it is still riddled with the paradigms of yesterday, both hardware and software wise, so there's much work to do, that's why it's interesting. The place where commerce meets VR is the most interesting as at the end of the day things must sell. So being the VR marketplace makes sense, also Knox is the only one at the moment.

The reason of selling this business

I want to concentrate on building a niche VR product -- VR controller bracelets.

What's involved in running this business

Ideally having your own warehouse space would be great to store. Someone to manage inventory and print things and send it. Really good customer service. Constant communicating with Vendors, buying bulk. Good operations person + shipping. Good communication with customers. Sales person for certain high tag products.

This business was founded: about 6 years ago
Time to run this business: approximately 40 hours per week

Traffic and Performance

  • Avg. revenue /month
    $32,544
    Verified
  • Avg. sessions /month45,858Verified
  • Avg. profit /month
    $9,609
  • Inventory value
    $85,000
  • Profit Margin30%
  • Avg. sales /month640
Other details about profit: This profit is calculated across the history of the store from 2014 up until now. This includes a period when the store was dormant and had almost no sales. The most recent profit for the last 6 months has been roughly $20-$30K with monthly sales of $60-$80K. There are also transactions done outside of Shopify that are direct wires, that add up to another $100 - $200K in yearly. We have exclusivity on several items for the United States and also have a long history with doing VR projects with Google, so they will approach you from time to time. Also, there is a University that orders roughly $80-$100K worth of products each year. Knoxlabs is linked from [REDACTED] and also from other manufacturers of VR gear. Please see Bhaptics and KatVR (exclusive Knox).
Last 6 years revenue
  • $2,310,633
  • Revenue data comes directly from Shopify and cannot be edited by the seller
    Last 6 years traffic
  • 3,255,967Visits
  • Traffic data comes directly from Shopify and cannot be edited by the seller

    Expenses

    • Shopify plan
      $179
      /month
    • Inventory warehouse
      $2,500
      /month
    • Employees
      $4,250
      /month
    • Domain
      $12
      /year
    • paid apps
      $92
      /month
    • Google Ads
      $500
      /month
    • Dropbox, slack
      $125
      /month
    • Fulfillment + shipping
      $2,500
      /month

    Sale Includes

    • Physical inventory

    • Logo and branding assets

      Logos + anything web related or brand related, social media, any graphics. Everything is on Dropbox, so can be transferred easily.
    • Personal support after sale

      Can transfer customer service and will help with telling the existing vendors of the transition. Can be available for 2 months.
    • Domain

    • Product photos

      Everything you see on the site and everything we have
    • Social media

      Total followers6,000subscribers
    • Suppliers

      Close relationship with all our suppliers, exclusivity on two major ones. I will help with transitions here.
    • Mailing List

      183,000subscribers

    Seller‘s Advice

    How to grow this business

    Become the one stop shop for anything VR. Concentrate on niche VR products that do not have representation in North America. Many innovate VR products are made by small startups outside of the US. You can negotiate 30-50% discounts on the products and don't have to do the legwork on actually making a product but enjoying similar benefits as if you were to manufacture yourself.

    Become the face and extension of these products in the US by providing the infrastructure (shipping, storing, customer service and sales) and making it super easy for these companies to enter the US market. Concentrate on bundling things together and offering a seamless experience.

    Why many buyers buy from Knox instead of Amazon now is because the knowledge we show towards VR. Become the first VR shop selling VR things. Definitely own the instagram "VR news" market, it's completely open now -- through this you can push VR products naturally, without the need of obtrusive ads. Become the launchpad of all the new VR products, such as the Vive's and Oculuses. Knoxlabs is almost at that stage. Also look at which products sell well and start manufacturing those products yourself. Become the Logitech+Amazon of VR.

    Skills to have

    Good branding. Friendliness with both vendors and customers. Handling of backend logistics of ebb and flow of inventory.

    Share

    TL
    Taron L.Current store owner
    I am a builder, currently a wand maker. I have an extensive history both in manufacturing VR accessories and VR/AR development. I built the first web VR development platform, Rodin, that enabled frontend developers to build device-agnostic VR/AR apps. Went through Techstars and through Knoxlabs manufactured more than 3.5M VR headsets (Google Cardboards) and created the first VR marketplace. Now I am working on building VR offices and VR bracelets.

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