For Sale: 7.5 Y/O eCommerce Store Selling High-AOV Sporting Goods

FOR SALE: 7.5 Y/O eCommerce Business Selling High-AOV Outdoor Sporting Goods Products - Over $18.7k Profit/Mo

A Dropship store in the Outdoor Sporting Goods industry

LIST PRICE: $899,000

Average Monthly Revenue: $142,184
Average Monthly Net Profit: $18,743
Profit Margin: Gross: 26.1% / Net: 13.2%
Monthly Multiplier: 48x (i.e. 4.0 Years)
Business Created: May 2017 (7.5 years old)
Owner Hours Required: ~25 hours per week

This is a highly profitable & well-established 7.5-year-old eCommerce store that sells a wide variety of high-ticket products in the outdoor sporting goods market. With a solid 26% gross profit margin and a ~$1,250 AOV (Average Order Value), the business nets ~$325 profit per order. Even better, about 2/3rds of the store's 69,000+ monthly visitors come from free traffic sources (primarily organic search traffic driven from its incredible 492 "top 3" and 2,567 "top 10" Google rankings). The vast majority of orders are drop-shipped, but the business has also created its own successful private-label brand (included in the sale) fulfilled by a 3PL in Nevada.

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Listing Overview

This 7.5-year-old eCommerce store isn't going to stay on the market for long, given the fact that it ticks ALL of the boxes serious buyers care about... and then some! Here are the top 10 things you need to know about this attractive business...

Aside from the private-label products the owners have built (more on that below), everything is drop-shipped. This means you don't have to purchase products from suppliers until after you've made a sale and collected the revenue, eliminating the need for a) working capital, b) warehousing & overhead costs, and c) the risk that you purchase inventory you're unable to sell. Despite the fact that almost all orders are drop-shipped…

... the business averages a very solid 26.1% gross profit margin. Very rarely are you able to find a business that has such high profit margins on drop-shipped products that also…

... have a ~$1,250 Average Order Value (AOV). (In our experience brokering eCommerce stores for the past 10+ years, most high-ticket drop-shipped products have more modest 10-15% margins, sometimes even lower.) Because of this killer combination of a 26.1% gross margin and a $1,250 AOV, the store manages a very cool…

... ~$325 Profit Per Order (PPO). "Yeah, but how much of that is eaten up by advertising costs?", you ask. Not much! Advertising expenses are a mere 4.2% of revenue. And yet, despite the fairly low marketing costs…

... the store averages over 69,000 visitors per month, almost 2/3rds of which come from free traffic sources (primarily organic search traffic). This insane amount of traffic is made possible by the site’s…

… thousands of #1 / top 3 / top 5 / top 10 Google rankings for targeted search phrases (i.e. keyword phrases), most of which demonstrate a high intent to buy. Per Ahrefs.com, the site has 492 "top 3" rankings (with a combined monthly search volume of 24,650) and a whopping 2,567 "top 10" page 1 rankings (over 150,000 searches/mo). With these stellar rankings, the store averages over 31,000 visitors per month from organic search traffic alone. This doesn't even count direct traffic (10.3% of total traffic), free organic Google Shopping traffic (6.6%) or free organic social media traffic (2.1%). Four of the top 5 traffic sources are completely free!

Aside from the post-COVID "hangover" year 2022, revenues have increased every year since the business was created 7.5 years ago (May 2017). The business has done ~$10 million in revenue over its lifetime, with over $1.7 million in revenue over the past 12 months (Nov 2023 - Oct 2024).

The store has generated ~$225k in net profit over the past year, which yields a $18,743 average monthly net profit. Given the nature of the products (outdoor sporting goods), there is some seasonality... but not as much as you might think. Only 2 of the past 12 months had net profit below $15,000.

Despite these impressive numbers, the two owners (friends who created the business together 7.5 years ago) each spend less than 15 hours per week in a high-level supervisor role on running the business. This is made possible by the fact that they have two very experienced and well-trained Virtual Assistants (VAs) that handle all of the day-to-day operations of the business, including sales/customer service, maintaining the store catalog, writing content, email marketing, and preparing reports for the owners to review.

The owners currently have a) LOTS of cash sitting in the bank and b) a 30-year SBA loan for about the same amount (i.e. current balance of ~$299k). This presents an opportunity for a unique deal structure IF you're interested (the deal certainly doesn't have to include the SBA loan - it's entirely up to you). If desired, the deal can be structured such that the buyer assumes/takes over the SBA loan (which has a very low 3.75% per annum fixed interest rate and monthly payments of only $1,590). In exchange for taking over the loan, the buyer can then: a) take ~$299k cash as one of the assets included in the sale, b) get a ~$299k reduction to the purchase price for the business, or c) take their desired combination of cash & a purchase price reduction (totaling ~$299k). See below for more details about the SBA loan. (Again, inclusion of the SBA loan is 100% up to you. The sellers can also just pay it off in full upon completion of the sale.)

The creators/owners of the business have decided to sell it at this time because they are both ready to move on to other dreams and opportunities. One owner has decided to go back to school to get his master's degree, which will not only require all of his time & attention but also a large amount of money. The other is starting a manufacturing business in a totally different market/industry, for which he needs A LOT of working capital.

Assets Included in the Sale

Domain name and all website content (Shopify store) for eCommerce store
Registered U.S. trademark of brand name and logo
All reseller/dropship accounts with suppliers
2 Virtual Assistants (VAs) if you choose to retain them, subject to their decision to stay on (very likely)
All social media accounts (Instagram: 10.5k, Pinterest: 5.3k, Facebook: 3.5k, YouTube: 600+ subscribers - several videos w/ tens of thousands of views)
All paid advertising accounts (Google, Microsoft & Meta)
Customer list (over 8,000 past customers)
Email list (over 54,000 total subscribers - currently paired down to ~19.k "active subscribers" to reduce subscription cost)
Domain-specific email accounts (with all automations, flows & campaigns)
Google Analytics, FreshDesk support system & other operating accounts/subscriptions
Custom-built upsell app/plug-in for offering shipping protection
Domain name, website content, registered U.S. trademark, email accounts, social media accounts (Instagram: 7.1k, Facebook: 3.9k, YouTube: 300+), designs, images and other accounts/assets related to the business' own private label brand
IF DESIRED: Buyer can assume the business' 30-year ~$299k SBA loan (with a super-low 3.75% per annum fixed interest rate) and get ~$299k cash as one of the assets included in the sale (to fund future growth) OR get a ~$299k reduction to the purchase price (see below for more details)
Written SOPs as well as recorded "how-to" videos for key operating & marketing tasks
30 days of extensive training & transition support
Note: Sellers will also sign a non-compete agreement

Additional Information About the SBA Loan - In early 2022, the owners took out a 30-year SBA loan (the current outstanding balance of which is ~$299k) to give them the working capital to further develop their private-label brand (which is included in the sale). The loan has an incredibly attractive 3.75% per annum fixed interest rate, and the monthly payments are only $1,590.

With how well their private-label products have sold — they completely sold out everything they had purchased for 2024 — and how well the business has performed as a whole the past couple years, they basically have enough cash in the bank to pay off the SBA loan if they wanted to. But since the 3.75% interest rate on the SBA loan is lower than the interest rate the money has been earning just sitting in a CD, they've opted not to pay off the SBA loan.

The Small Business Administration has confirmed that the SBA loan can be assumed by the buyer upon the sale of the business (subject to SBA approval upon submission of a couple simple forms), which presents a very attractive opportunity for the buyer.

The sellers are open to any of the following options regarding the SBA loan:

Option #1 - If you don't want to assume the SBA loan, the sellers will simply pay off the loan upon the sale of the business. End of story.
Option #2 - You can assume the SBA loan (which has a ~$299k balance) and get an equal amount of cash as one of the assets included in the sale (essentially allowing you to get an SBA loan without all the usual "hoops" you have to jump through and at a much lower interest rate than is possible today).
Option #3 - You can assume the SBA loan and get a ~$299k reduction to the purchase price (essentially letting you fund a sizeable portion of the purchase at a killer rate).
Option #4 - You can assume the SBA loan and do a combination of options 3 and 4 above (i.e. acquire some cash to leave in the bank and take a reduction to the purchase price for the remaining amount).

Site & Social Media Links

INFORMATION LOCKED!

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Financial Information

Following is the P&L Statement for the trailing 12-month period November 2023 - October 2024. (Click on the image to open a full-size version of it in a new tab.)

* Please note that the October 2024 figures in the P&L above have not yet been finalized. The accounting firm that maintains the business' financial records typically doesn't complete their monthly work until around the 20th of the following month, but we wanted to include October to make the P&L as up-to-date as possible. October's revenue figure comes directly from Shopify. The 73.8621% COGS percentage for the preceding 11 months has been applied to October (i.e. $123,223 revenue x 73.8621% = $91,050 COGS). October 'Advertising' expenses were pulled directly from the Google, Microsoft and Facebook platforms. The 'Labor & Freelancers' figure is based on amounts paid to VAs in October. The 'Merchant & Bank Fees' expense is based on the 2.9904% of revenue average for the preceding 11 months (similar to how COGS was calculated). For all other operating expenses, averages from prior months were used. The owners are confident that the finalized net profit figure will come in very close to what's shown in the P&L above.

As you can see, the store has done over $1.7 million in revenue over the past 12 months, averaging $142,184 revenue per month. Over the past year, Cost of Goods Sold (COGS, which includes shipping costs and which is net of credit card cash back) has averaged 73.9% of revenue, resulting in a healthy gross profit margin of 26.1% (especially considering the fact that the store primarily sells high-ticket items that are drop-shipped by the suppliers). All operating expenses have combined for a total of 13.0% of revenue, yielding a very robust net profit margin of 13.2%. The total net profit for the past 12 months was $224,915, which is an average of $18,743 net profit per month. Given the fact that the store sells outdoor sporting goods products, sales obviously dip a bit during the colder & wetter winter months. But over the past year, monthly net profit has only dropped below $15,000 in two months.

Because the business has credit terms with several of its biggest suppliers and oftentimes pays for orders a month (or sometimes even 2 months) after the revenue for that order is received, the COGS percentage can vary widely from month to month. To eliminate these arbitrary up-and-down swings in reported profitability arising from the timing of when invoices are paid and recorded, the above P&L "normalizes" Cost of Goods Sold by applying the 73.8621% COGS percentage for the entire year to the revenue figure for each month. This is why the COGS percentage is exactly 73.8621% every month. In reality, the COGS percentage is likely +/- 1-3% in any given month depending on which products were sold that month.

The following 'Finances Summary' report from Shopify corroborates the 'Revenue' figure shown in the P&L above. The 'Total Sales' number is a few thousand dollars off from the P&L's 'Revenue' figure simply due to the timing of which month Shopify records the revenue (as well as occasional order cancellations/refunds) versus which month the revenue is recorded on the P&L. Note: Additional Shopify and Google Analytics Ecommerce reports will be made available after you sign the NDA.

The following 'Sales Over Time' report from Shopify shows the positive revenue growth trend over the past 24 months (Nov 2022 - Oct 2024)...

The owners will of course give the buyer the opportunity to conduct extensive due diligence and verify all revenues and expenses prior to closing (including supplier invoices, bank & credit card statements, Shopify reports, paid advertising accounts, etc.), along with a comprehensive review of Google Analytics, supplier accounts and contracts, day-to-day operations and other business logistics.

Marketing & Traffic

Over the past year, the site has averaged over 69,000 visitors per month, with over 64% of traffic coming from free sources (primarily free organic search traffic). This means the store gets almost 45,000 completely free visitors every month. Following is the Google Analytics 'Traffic Acquisition' report for the trailing twelve months (November 2023 through October 2024)...

Google Analytics Traffic Acquisition Report - Nov 2023 through Oct 2024

Over the past 12 months, the store's top 5 traffic sources have been:

Organic Search (free traffic): 44.8% of total traffic
Paid Shopping (paid traffic): 32.9%
Direct (free traffic): 10.3%
Organic Shopping (free traffic): 6.6%
Organic social (free traffic): 2.1%

As with most highly profitable eCommerce businesses, free organic search traffic is the #1 traffic source. Organic search traffic, of course, comes from high rankings in Google and other search engines. The following table shows the ridiculous number of keyword phrases (i.e. search phrases) the site ranks for in Google (USA) and the combined monthly search volume for each grouping. All data is from Ahrefs.com as of October 31, 2024.

Google Rank	# of KW Phrases	Monthly Searches
#1	107	2,550
#2	166	8,380
#3	219	13,720
#4-5	546	28,400
#6-7	545	34,690
#8-10	984	62,490
#11-15	1,799	106,880
#16-20	1,909	116,610

Note: After you sign the NDA, you can access the Ahrefs.com organic rankings report in the Additional Information & Reports section to see the specific search terms (i.e. keyword phrases) the site ranks for and other rankings data. This section also contains links to several more reports from Google Analytics.

In total, the site currently has:

107 #1 rankings (totaling 2,550 searches per month)
492 top 3 rankings (24,650 searches/month)
1,038 top 5 rankings (53,050 searches/mo)
2,567 top 10 rankings (150,680 searches/mo)
An additional 3,708 page 2 rankings (223,490 searches/mo) on their way to becoming page 1 rankings

Products & Store Catalog

The store catalog contains over 3,000 SKUs from 50+ brands within the outdoor sporting goods niche. While this may sound overwhelming, maintaining the catalog is almost entirely automated and one of the VAs does all the work. It's also important to note that around 80% of the store's total revenue comes from just 80 SKUs and 10 brands. Once you sign the NDA, you'll be able to see the domain name of the site as well as the brands and product lines the store sells.

As an almost entirely drop-ship operation (all but the business' private-label brand), fulfilling orders is a piece of cake. Once the VA places the order by either sending a templated email to the supplier or placing the order directly in the supplier's back-end dealer portal, the supplier does everything else. All of the suppliers use their shipping accounts, and shipping charges are simply included in the wholesale pricing. The vast majority of orders are fulfilled within 3 days, with deliveries typically reaching customers in 5-8 days. Customers are clearly very satisfied with their orders, as the store gets less than 5 returns per year. Additionally, the store’s suppliers are reliable and easy to work with, making daily operations simple and efficient.

Operations

The majority of daily operations are managed by two Virtual Assistants (VAs). One VA handles all customer service tasks, processes orders, and communicates with both customers and suppliers via phone and email. The other VA focuses on SEO keyword research, website content creation (optimizing for SEO), and email marketing.

The two owners typically only put in 12-15 hours of work each per week, primarily in a supervisory capacity. The VAs pull and prepare various scheduled reports each week, which the owners then review during weekly meetings. The owners keep an eye on customer service, on-page search engine optimization & content creation, and paid advertising, though most of the actual work is performed by the VAs.

Top Growth Opportunities

Improving Google & Bing Ads - The store currently operates with basic advertising campaigns, primarily through Google Shopping Ads and, to a lesser extent, Microsoft and Meta (Facebook/Instagram). This is managed within a strict budget of $1,500 per week due to limited specialization in ad management. With the right expertise, there is ample room for expansion. Currently, only remarketing is utilized for text and search ads, leaving significant untapped potential in standard search ads and YouTube ads, which have not yet been explored.

SEO Growth Potential - The store already gets A LOT of free organic traffic, but there is nearly limitless growth potential in this area. While the team excels in producing high-quality content, they have limited expertise in building backlinks. Significant opportunities remain untapped, particularly in expanding content and strengthening backlink profiles to improve rankings. A comprehensive audit will reveal that the store is only scratching the surface of its full potential.

Adding Products and Suppliers - Given the market it's in, the sky's the limit in terms of add more brands and products. Expanding into other areas presents significant growth potential—not only in product offerings and brand partnerships but also in driving more traffic and revenue from these additional product lines.

Expanding the Sales Team - Having a 4-person team (3 of which are part-time) to operate a $1.7-million-revenue business is pretty lean. While cost-effective, the limited man-hours put into the business is no doubt leaving money on the table (missed sales and missed opportunities). The owners lack the experience and expertise to transition the business from a little "ma and pa shop" to a large-scale operation, but the right buyer with the right resources and experience could really take this business to a new level.

Ramp Up the Private-Label Brand - The handful of products the owners released under a private-label brand name have done extremely well. (In fact, they completely sold out of the products they had made for 2024 mid-way through the summer.) What's more, the profit margins for their own products is ~40% (compared to around 25% margins on other brands). The private-label brand is primed to be majorly expanded, both in terms of volume and product offerings. The sellers will happily provide guidance to the new owner.

Buying Process

You can make an offer for this business here. We will immediately present your offer to the sellers. If they accept your offer, we'll notify you immediately and update this page to let other interested parties know that an offer has been accepted.

Once your offer is accepted, a 10- to 30-day due diligence period will begin (during which time other interested parties may place a "back-up offer" in case the sale falls through for whatever reason). During this due diligence period, we'll work closely with you and the seller to help you complete due diligence and prepare to close.

Once the Asset Purchase Agreement (APA) is signed and the sale is completed, we will update this page to let other interested parties know that the sale has been finalized and remove this listing from the Biz Sellers Marketplace.

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Additional Information & Reports