SOLD: 2+ Y/O Auto Accessory Dropship eCommerce Store

A Dropship store in the Auto Accessories industry

LIST PRICE: $5,000

  • Average Monthly Revenue: $1,878
  • Average Monthly Net Profit: $16 (see listing)
  • Profit Margin: Gross: 19.0%
  • Monthly Multiplier: See listing
  • Business Created: Sep 2021
  • Owner Hours Required: < 2 hours per week

This 2-year-old eCommerce store uses the dropship model and generates an average of $1.9k revenue/month. It's driven primarily by free organic traffic and free Google Shopping traffic. While its profitability has so far been limited due to high fixed costs, the store is poised to become very profitable over time.

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Listing Overview

Up for sale is a 2+ year-old dropship eCommerce store that sells several of the most popular brands of a specific type of auto accessory. (The domain name and niche will be disclosed after you sign the NDA.) Over the past year, the store has generated just over $22.5k in revenue. Profit margins are solid (19.0% of revenue), but the store's net profit has been limited due to high fixed costs (i.e. apps and subscriptions required to make the site's year/make/model and SEO-friendly product fitment interface work). While profits thus far have been limited, the store has massive upside potential as sales continue to increase (and fixed costs remain the same).

Here's a quick bullet-point synopsis of the store's history and future outlook:

  • The store build-out was time-consuming and had a few thousand dollars in hard costs in order to make the product catalog both user-friendly and SEO-friendly (something very few stores in the market have).
  • By the time the store build-out was complete, the seller was completely swamped with another project.
  • The seller has all but ignored the store for the past 18+ months, doing little more than fulfilling orders that have come in naturally from free organic traffic.
  • The apps and subscriptions necessary to run the store's SEO-friendly year/make/model fitment interface and catalog management system are about $270 per month... not bad at all with a decent sales volume, but enough to eat up most of the profit when sales are slow.
  • The seller has realized that he realistically won't get around to spending any time on the store in the near future, so he's decided to sell the site and at least recoup a portion of what he spent to build the site.
  • Because of how well-built and SEO-friendly the store is, it's naturally starting to get some decent rankings and generate a fair amount of free organic traffic.
  • As rankings continue to improve (and if the store gets at least a little bit of attention from the new owner), the site is on track to become quite profitable.

Assets Included in the Sale

  • Domain name and all of the website content
  • Shopify account
  • Supplier agreement
  • Judge.me reviews account with 4.8 average rating and ~200 verified reviews
  • 30 days of support to train you/your team on how to run the store

Site & Social Media Links

INFORMATION LOCKED!

Financial Information

Following is the P&L Statement for the 12-month period Oct 2022 through Sep 2023. Click on the image to open a full-size version of it in a new tab. Please note that all expenses are net of 2% cash back, which the seller gets by charging everything to his Capital One Spark credit card.

Profit and Loss Statement - 4Q 2022 - 3Q 2023

The following 'Finances Summary' report from Shopify corroborates the 'Sales Revenue' shown in the P&L above.

Shopify Finances Summary Report 4Q 2022 - 3Q 2023

As part of the due diligence and closing process, the seller will of course give the buyer the opportunity to confirm all of the line items of the P&L Statement and view source documents and reports.

Marketing & Traffic

As you can see from the Google Analytics 'Acquisition Overview' reports below (the first one for Oct 2022 - July 2023 and the second for Jul - Sep 2023 after trackingg was updated to the new GA4 tag), the vast majority of the site's traffic is either direct traffic (67% - free Google Shopping traffic) and free organic traffic (29%). From all sources combined, the site currently gets around 100 sessions per day.

Google Analytics Acquisition Overview Report 1 of 2

Google Analytics Acquisition Overview Report 2 of 2

Free organic traffic, of course, comes from keyword rankings in Google and other search engines. And thanks to its painstaking SEO-friendly build, the site has started to get more and more page 1 rankings! The following table shows how many keyword phrases (i.e. search phrases) the site ranks for in Google.com (USA) and the combined monthly search volume for each grouping. All data is from Ahrefs.com as of Nov 10, 2023.


Google Rank # of KW Phrases Monthly Searches
#1 9 370
#2 9 530
#3 12 670
#4-5 28 2,000
#6-7 28 1,900
#8-10 57 8,380
#11-15 105 12,570
#16-20 114 8,480

Note: After you sign the NDA, you can download the Ahrefs.com report from the Additional Information & Reports section to see the keyword rankings data.

While the 30 "top 3" rankings the site currently has are beneficial in driving a decent amount of traffic and occasional sales, it's the other page 1 and page 2 rankings that provide a glimpse of how profitable the store can be moving forward. The 30 "top 3" rankings are only searched for a combined 1,570 times per month. The other page 1 rankings (i.e. ranks 4-10) get a collective 12,280 searches per month, and the page 2 rankings (i.e. ranks 11-20) get 21,050 searches per month. As the store's rankings for these other page 1 and page 2 rankings climb over time, traffic will increase exponentially.

This screenshot from Ahrefs.com (taken on Nov 10, 2023) illustrates the site's upward organic rankings and performance trends over the past several months. The highlighted section also shows that the site currently gets about $1,100 worth of free organic traffic per month (meaning that you'd have to pay an estimated $1,100 in Pay-Per-Click ads to generate the same amount of traffic this site currently gets for free).

Ahrefs Organic Performance Report

Over the last year, the seller has only spent $144 on a couple small Pay-Per-Click campaigns (an average of $12 per month). He just hasn't had the time to set up large-scale campaigns and scale them up. Getting paid advertising going is a huge growth opportunity the new owner could explore.

Products & Store Catalog

The store sells 5 of the most popular brands of a very specific type of auto accessory. (Once you sign the NDA, you'll be able to see the domain name of the site and the exact niche it operates in.) The store's catalog is comprised of about 1,900 products, but product feed files make it very easy to manage (and updates are only required 1-2 times per year).

All of the suppliers have a strict MAP (Minimum Advertised Price) policy, which is optimal because it prevents retailers from starting "price wars" by undercutting their competitors' prices which leads to lower profit margins over time. It also eliminates the need to constantly check competitors' prices and decide whether match or beat their prices.

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

INFORMATION LOCKED!

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