All prices in USD
$10,000
  • Avg. revenue /month
    $9,580
  • Avg. sessions /month7,152
  • Avg. profit /month
    $1,289

Business Story

Why this business was started

I found the product and fell in love with its uniqueness and USP.

As an entrepreneur with multiple Shopify businesses in the past, I enjoy finding a winning product, and building a brand around it that outshines any other in its space, and then selling the brand to a new owner who has a proven record to scale new businesses.

The reason of selling this business

I am leaving the E-commerce space to start a SMMA. This business requires a passionate and dedicated owner, and I feel as though I am not able to do both at the same time unfortunately.

What's involved in running this business

I work with WIIO, a Chinese fulfilment company / warehouse provider.

I have an agent; Aiko, who finds the best the quality suppliers and helps me order in bulk and deal with customer returns, quality check, and any communication between me and the supplier.

Aiko is great at making sure we keep on top of the inventory, and that orders are processed ASAP to get the orders shipped out quickly.

As a result, orders reach the customer within 5-18 days usually.

This business was founded: over 1 year ago
Time to run this business: approximately 5 hours per week

Traffic and Performance

  • Avg. revenue /month
    $9,580
    Verified
  • Avg. sessions /month7,152Verified
  • Avg. profit /month
    $1,289
  • Profit Margin9%
  • Avg. sales /month190
Other details about profit: Gross profit margins are 61.6%! I have lost a lot of profit when first finding my feet with Facebook ads. I also spent a lot of money on a failed marketing company partnership who overcharged me and didn't produce results. I am able to provide a full breakdown of costs and explain the net margins in detail if requested. I also have constantly re-invested profits back into the business to grow the brand (and reduce tax bill), but this has contributed to lower net profit. Happy to speak over the phone and run the new owner through the P/L, and explain the massive difference in gross/net profit. You can also see that the first few months were not profitable, bringing my averages down significantly.
Total revenue
  • $182,026
  • Revenue data comes directly from Shopify and cannot be edited by the seller
    Total traffic
  • 135,900Visits
  • Traffic data comes directly from Shopify and cannot be edited by the seller

    Expenses

    • Shopify plan
      $29
      /month
    • Domain
      $12
      /year
    • Email Marketing, reviews, order tracking, sticky add to cart and auto syncing tracking numbers to PayPal
      $46
      /month
    • Facebook
      $4,830
      /month

    Sale Includes

    • Physical inventory

      Not Included
    • Logo and branding assets

      1 x emblem logo (png + jpeg) 1 x logo with text (png + jpeg) All photos currently on website will be available to the new owner. These can be sent via email or share drive. There are also more video creatives and model photos which will be made available to the new owner.
    • Personal support after sale

      Happy to be in direct contact for the first 3 months. I will support with the initial teething issues (if any) and can also offer my advice on growing the business, and understanding the brand identity to be able to take over customer service (which has high ratings!)
    • Domain

    • Product photos

      No preference. All custom photos, model photos, professional photography / videography, + Ad creatives
    • Social media

      Total followers2,328subscribers
    • Suppliers

    • Mailing List

      1,507subscribers

    Seller‘s Advice

    How to grow this business

    How I would grow the store in the next 5 years:

    1) Facebook Ads The store took a hit post iOS 14 update. Moving forward I would target more countries than just the US, UK, CA, AU and NZ. There is a wider market to sell to other areas in Europe, which hasn't really been explored.

    If I had more budget I would certainly test new creatives, film new clips and test new video edits on Facebook & Instagram, and scale accordingly.

    Surprisingly I have reached over $170K+ revenue, with mainly just 1 creative. I would recommend the new owner of the business to prioritize marketing, by investing into a variety of clips which can be used to make new material which could lead to higher ROAS and a lower cost per purchase.

    2) TikTok Ads This is an ever growing platform with a lot of potential. There are many different trending hash tags such as #parentinghacks which would be perfect for this product. I would a) use TikTok's ad manager for paid traffic, but make the ad look as far away from an ad as possible - and b) I would reach out to a popular new mom on TikTok, offer her the product for free and a commission of sales over a 48hr period and ask her to post how the bag has been a game changer for her as a parent.

    3) Instagram influencers I have not explored this option but am very well aware of the potential. I would send the bag to 5-10 new mothers on Instagram with 50-100K followers, with a nice letter attached to say "we love your content and what you're doing, we feel that your personality really aligns with the brand. Here's a free baby bag for you to enjoy, if you like the product - please just post about it giving your feedback to your audience".

    4) Retargetting & Google ADs I would recommend creating ads specifically for retargetting audiences. Warm leads from the 3 avenues can be targeted with a specific offering, e.g. 20% off, as customers have considered ordering from That Baby Bag in the past, but price may have been the hurdle. I would also experiment with google ads. I know that google ads have been successful for other similar companies in this space, I have just not tried it myself. I would use SKAGS strategy for google ads, and also create a branded search campaign, so that people who see your ad on FB and google your site, will find you there at the top of the google search, which will lead to conversions and act as a retargetting campaign for warm leads.

    Also worth mentioning that to really scale this store up, I would recommend focusing on adding value to the user, what incentives can I offer to entice people to make the sale? There is an opportunity to really create a solid brand identity, brand each bag and engage with 3PL's in the main countries or at least the US or AUS (top selling countries) to be able to advertise 3-5 day shipping times.

    I have been in contact with shipbob who are willing to work with the store based on the sales figures, they are a great 3PL in the US - as logistics isn't my background I didn't take the leap but this would be my advice to the new owners.

    Skills to have

    Marketing skills are important to achieve full potential.

    Innovative and open mindset, willing to explore trending avenues like TikTok, YouTube, Google Ads - ALL of which haven't yet been explored with this store.

    The new owner should also have the ability to look at the business with fresh eyes, and put theirselves in the mindset of the customer/consumer.

    Share

    PJ
    Paul J.Current store owner
    I am a 23 year old entrepreneur who enjoys the process of brand building. I currently live in the UK, and I'm moving on from Ecom to now start a social media marketing agency and take on a new challenge.

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