~2 Y/O UK eCommerce Store Selling High-AOV Patio/Yard/Garden Products

SOLD: ~2 Y/O UK eCommerce Store Selling High-AOV Patio/Yard/Garden Products - £11.3k Profit/Mo

A Dropship store in the Patio/Yard/Garden industry

LIST PRICE: £ 515,000

Average Monthly Revenue: £ 66,206
Average Monthly Net Profit: £ 11,828
Profit Margin: Gross: 27.0% / Net: 18.8% (21.4% in 2024)
Monthly Multiplier: 42x (i.e. 3.5 Years) + £18k of Inventory
Business Created: Aug 2022 (about 2 years old)
Owner Hours Required: ~20 hours per week

This is a fast-growing primarily dropship eCommerce store selling a variety of high-AOV products in the patio/yard/garden space targeting the UK market. With solid 27% gross profit margins, an ever-growing number of large B2B clients placing recurring large orders and organic rankings & traffic shooting upward, this .co.uk store's future is extremely bright!

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Listing Overview

This 2-year-old primarily dropship eCommerce store has just about everything going for it that you could ask for...

Everything is trending up... rankings, traffic, revenue, profits, return customer rate, conversion rate, you name it... they're all trending up.

The vast majority of orders are drop-shipped directly from the supplier to the customer... and yet the profit margins are very strong (27.0% over the past 12 months... but have risen to 28.7% in 2024 year-to-date). Note: Jayden (the owner) buys just one brand of products in bulk and has a 3PL fulfillment center store & ship those items.

Jayden (the owner) has established strong business relationships with several large B2B clients who place big orders on a recurring basis. There is currently over £100,000 of B2B orders in the pipeline awaiting final sign-off.

The store sells high-ticket items with large profit margins. Over the past 12 months, the store has had an Average Order Value (AOV) of about £4,400, which translates to just shy of £1,200 gross profit per order given the store's 27.0% gross profit margin. In recent months, however, both the AOV and profit margin have increased due to a larger percentage of sales coming from large B2B orders. In 2024 year-to-date, the store has achieved a £6,100 AOV with an average of £1,750 profit per order (with a 28.7% gross profit margin).

The store is an authorized dealer/reseller for over 20 of the top UK brands in the market, and sales are quite well-diversified among those brand names and products. The best-selling brand accounts for 42% of revenue (but is diversified amongst many SKUs), and the #2 and #3 brands account for 15% and 13% of revenue, respectively. Lead times are typically around 7 days, which is very fast for the industry.

With two Virtual Assistants (VAs) in place (one full-time at 40 hours/week and one part-time at around 10 hours/week), the business currently only requires about 20 owner hours per week... and the vast majority of Jayden's time is spent on high-level, big-picture work such as relationship management and determining the business' strategy/direction. (Note: Jayden feels that both VAs are very likely to stay on for the new owner after the sale, if the buyer so desires.)

Over the past year and a half, Jayden has established a unique strategic partnership with an independent assembly/installation company which has now dedicated a significant portion of its resources to servicing the store's customers exclusively (with extremely fast timetables). Because of this relationship and how Jayden has integrated assembly/install services into the website and ordering process, conversion rates and sales have increased substantially. The buyer will of course take over this existing relationship.

Jayden's SEO efforts are just starting to pay off. In 2022 and 2023, the site was quite heavility dependent on paid ad campaigns for traffic. But in 2024, the site's rankings have really shot up and the site currently has 212 "Page 1" Google rankings (collectively receiving about 23,200 searches per month), with 49 of those being top 3 rankings (about 3,300 searches/mo). Organic rankings have continued to steadily rise over the past year. Read more about the site's improving rankings and increasing traffic in the Marketing & Traffic section below.

Why sell such an appealing business on the rise? Jayden was recently married and he and his wife plan to travel extensively before starting a family in a couple of years. Jayden's personality is such that he's either all-in (devoting 100% of his time and energy to something) or not at all... plus they'd enjoy some cash for their travel/adventures and a large down payment on a home.

Assets Included in the Sale

Domain name and all website content
All inventory on hand at closing (approximately £ 18,000 at cost value)
All reseller/dropship accounts with suppliers
2 Virtual Assistants (VAs), subject to their decision to stay on
Relationship/contract with dedicated nationwide installation team
3PL account for warehousing, distribution and order fulfillment
YouTube Channel and all video content (averaging over 2,000 views/month)
Customer and email lists
Account with call answering service
Agreements with 50+ affiliates
UK LTD company (if desired)
30 days of support to train you/your team on how to run the store
Note: Seller will also sign a non-compete agreement

Site & Social Media Links

INFORMATION LOCKED!

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Financial Information

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

Given the fact that the store sells patio/yard/garden products, sales are obviously strongest during the warmer spring and summer months. But looking at the past 12 months as a whole, the store has averaged about $66.2k revenue and $11.8k net profit per month.

Over the past 12 months, the store has had a 27.0% gross profit margin (which is quite high for a dropshipping-based store selling high-priced products) and a very solid 18.8% net profit margin (after all expenses). Over the most recent few months, those percentages have increased due to a combination of:

a) a larger percentage of the site's visitors coming from free organic traffic thanks to the site's ever-improving keyword rankings (as discussed in the Marketing & Traffic section below), and

b) large B2B sales (many of which have become recurring in nature) from strong business relationships that have been established (which was touched on in the Overview section above).

Looking at just the most recent 6 months in 2024 (Jan - Jun), the store has had an even higher 28.7% gross profit margin and 21.4% net profit margin. These positive trends should continue as the store's rankings continue to climb and B2B client relationships expand and deepen.

The owner will of course give the buyer an opportunity to conduct extensive due diligence and verify all revenues and expenses prior to closing, together with a thorough review of the supply chain, day-to-day operations and other business logistics.

Marketing & Traffic

Following is the Google Analytics 'User Acquisition' report from July 20, 2023 (the first full day after switching to Google Analytics' new GA4 technology) through June 2024 month-end, which shows the site's traffic breakdown over that period. In the graph portion of the screenshot (on the left side), the 'Organic Search' line is selected to highlight how free organic traffic has steadily increased over the past several months.

Google Analytics User Acquisition Report

For the entire 11.5-month period shown in the above report, the traffic breakdown is as follows:

Paid Shopping: 50.3%
Organic Search: 34.4%
Direct: 9.2%
Paid Search: 3.3%
Referral: 1.6%

In recent months, however, a much larger percentage of total traffic has been free organic traffic as the site's keyword rankings have steadily improved. Here is a screenshot of the same Google Analytics 'User Acquisition' report for the past 3 months (April - June 2024) which shows that Organic Search is currently driving over half of the site's traffic.

Google Analytics User Acquisition Report

Over the past 3 months, the traffic breakdown is as follows:

Organic Search: 51.7%
Paid Shopping: 36.6%
Direct: 7.8%
Paid Search: 2.2%

Free organic search traffic, of course, comes from high rankings in Google and other search engines. The following table shows how many keyword phrases (i.e. search phrases) the site ranks for in Google.co.uk (UK) and the combined monthly search volume for each grouping. All data is from Ahrefs.com as of July 17, 2024.

Google Rank	# of KW Phrases	Monthly Searches
#1	22	1,190
#2	8	530
#3	19	1,590
#4-5	44	5,300
#6-7	53	5,410
#8-10	66	9,210
#11-15	103	8,680
#16-20	111	8,970

Note: After you sign the NDA, you can download the Ahrefs.com report from the Additional Information & Reports section to see the specific search terms (i.e. keyword phrases) the site ranks for and other rankings data.

In total, the site currently has:

22 #1 rankings (totaling 1,190 searches per month)
49 top 3 rankings (3,310 searches/month)
93 top 5 rankings (8,610 searches/mo)
212 top 10 rankings (23,230 searches/mo)
An additional 214 page 2 rankings (17,650 searches/mo) on their way to becoming page 1 rankings

Here is a screenshot of the summary page from Ahrefs.com showing how the site's rankings have steadily improved over the past 6 months.

Ahrefs.com Summary Screenshot

As you can see, this site's rankings and traffic (which are obviously the key drivers of sales and profits) have shot up over the last several months. In the past month (June 2024), the site had 9,883 visitors from free organic search traffic. As free traffic makes up an increasingly larger percentage of total traffic, the site's net profit percentage also continues to rise. As highlighted in the Financial Information section above, over the 6 months of 2024 the store's net profit percentage has risen to 21.4% (compared to 11.6% over the previous 6 months). Profitability will continue to rise as a higher and higher percentage of visitors come from free organic traffic (together with return customers, particularly high-value B2B customers that place large orders).

Products & Store Catalog

The store carries over 20 of the top UK brands in the patio/yard/garden space. All products are delivered from the UK with an average lead time of just 7 days (very fast for the industry). 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.

Operations

The vast majority of day-to-day operations are handled by the 2 VAs (i.e. Virtual Assistants). One VA is full-time (40 hours/week) and takes care of catalog management (adding new products, stock & price updates, etc.), content creation, search engine optimization (SEO) and encouraging the creation of natural links to the site.

The other VA currently only works about 10 hours per week but has the capacity to work more as requested/needed. This VA (who is actually local in the UK) processes orders, schedules installs, and interfaces with both suppliers and customers.

Jayden (the owner) handles some of the large B2B orders but spends most of his time on supplier and B2B customer relations as well as high-level strategy and growth tasks.

Jayden currently uses a third-party call answering service to take incoming calls from both prospective and existing customers. This service handles basic questions about order status and placing orders but passes on sales leads and product-specific questions to the team.

Included as part of the sale, Jayden and his VAs will train the buyer (and his/her team) on all aspects of running the business.

Top Growth Opportunities

Recurring B2B Orders - Jayden feels like he's just started to expose the "tip of the iceberg" in terms of B2B sales. In addition to B2B orders tending to be much larger than typical residential orders, many businesses he's worked with have placed 3, 4 or 5+ orders in a matter of just a few months. There is currently over £100,000 of orders in the B2B pipeline.

Email Marketing - Jayden just added an email opt-in to the store a couple months ago and has already collected over 500 e-mails. It's currently growing at a rate of about 50 emails per week. He hasn't done anything in terms of email marketing yet, but the infrastructure is in place and ready for the new owner to capitalize on.

Continue SEO Efforts & Enjoy More Free Traffic - You really don't need to do anything new or different here... just keep having the VA continue doing what they're doing. Search engine rankings are already improving month after month, and free organic traffic is now the site's #1 traffic source. Just keep rolling with it and enjoy more & more free traffic (and sales and profits) over time.

Set Up Retargeting Ads - Jayden readily admits he's not exactly a Pay-Per-Click marketing expert. He's set up basic Google Shopping Ads and a few targeted search ads, but he hasn't attempted to tackle retargeting ads (which are by far the most cost-effective ad type for most eCommerce stores, especially high-ticket stores that get a lot of traffic like this site does).

Expand Affiliate Network - The store has a fully-automated affiliate network set up, and around 50 affiliates have already signed up. But Jayden hasn't done much to recruit more affiliates and encourage more action. But the market the store is in is absolutely ideal for affiliate marketing, given its combination of high AOV, high gross margins (with plenty of room to give affiliates a healthy commission) and products that are very aesthetic and blog/story/social-media worthy.

Increase Stock Holding - Jayden currently only buys a single brand in bulk and uses a 3PL fulfillment company to store and fulfill orders for those products. He hasn't wanted to invest the capital to do the same thing with other brands, but margins could be improved by buying in bulk and fulfilling these orders "yourself" (i.e. using the 3PL fulfillment center) rather than having the products drop-shipped by the supplier.

Create a Private Label Brand - In the long run, it could be a huge opportunity to "private label" a couple/few of the best-selling products and selling them under a unique brand name. This way, the store wouldn't be competing directly with other retailers selling the same brand names and products.

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 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 30-day due diligence period, we'll work closely with you and the seller to help you complete due diligence.

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 Store Coach Marketplace.

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Additional Information & Reports