FOR SALE: 7.5 Y/O eCommerce Store Selling Its Own Brand of a Sporting Goods Accessory - $4k Profit/Mo
LIST PRICE: $210,000
- Average Monthly Revenue: $7,965
- Average Monthly Net Profit: $3,965
- Profit Margin: Gross: 61.8% / Net: 49.8%
- Monthly Multiplier: 40x + Inventory (at Cost)
- Business Created: Fall 2015
- Owner Hours Required: 4-5 hours per week
Up for sale is a 7.5-year-old private label eCommerce store that sells its own unique brand of a sporting goods accessory. The two founders/owners of the business (who are both engineers and sports enthusiasts) have designed the products themselves. They've been selling their flagship products for several years, but they just recently released a higher-end premium line of products in 2023. They also have several ideas/design concepts created for additional products, which they will pass along to the buyer. (Note: The domain name and niche will be disclosed after you sign the NDA.)
In 2023, the store averaged about $8.0k revenue per month and about $4.0k net profit per month. Yes, that means it has about a 50% net profit margin (after all expenses)... 49.8% to be exact. The business currently has about $50,000 of inventory (at cost value) on the shelves at the 3PL fulfillment center that takes care of order fulfillment. The inventory on hand as of the date of closing is included in the sale.
The founders/owners of the business have done very little in the way of marketing and advertising. Almost all of the traffic to the website comes from a combination of a) direct traffic from past visitors and returning customers (of which there are over 2,300) who know the site's domain name, and b) free organic traffic from the site's organic rankings in Google and other search engines. The brand name is quite well known within the niche, as evidenced by the fact that 6 of the 12 #1 Google rankings the site has contain the brand name in the search phrase. And we're not talking about miniscule-volume search phrases that barely register in Google. These 6 brand-specific search phrases get about 390 searches per month. (The other 6 #1 rankings for non-brand-specific phrases add another 530 monthly searches.) See more info in the Marketing & Traffic section below.
Because the 3rd Party Logistics (3PL) company handles order fulfillment, the two owners currently spend an average of just 4-5 hours per week on the business between the two of them (combined). They are selling the business because they feel like they have growing families (i.e. more expenses and more time commitments), they both recently started new jobs that place more demands on their limited time, and they like the idea of cashing out.
Assets Included in the Sale
The store boasts a phenomenal 61.8% gross profit margin (after Cost of Goods Sold and shipping/fulfillment costs) and an even more impressive 49.8% net profit margin (after all expenses). The owners haven't historically done much with paid advertising, but it's clear to see that the healthy profit margins leave plenty of room to marketing and advertising if you choose to do so.
The owners use a USA-based 3rd Party Logistics (3PL) company to warehouse their inventory and handle all order fulfillment, which enables them to only put in a combined 4-5 hours per week. All 3PL fulfillment costs are included on the 'Shipping & Fulfillment' line of the P&L Statement.
The following sales report from WordPress/WooCommerce supports the 'Revenue' number shown in the P&L above, though it's a bit lower than the P&L figure due to it not including several large wholesale orders processed outside WordPress.
The owners will of course give the buyer an opportunity to conduct extensive due diligence and verify all revenues and expenses, together with a thorough review of the supply chain, day-to-day operations and other business logistics.
Marketing & Traffic
As you can see from the Google Analytics 'User Acquisition' report below, virtually all of the site's traffic is free traffic. Organic search traffic (driven by the site's organic rankings in Google and other search engines) accounts for 39% of total visitors, direct traffic (i.e. people who know the site's domain name and come directly to it) makes up 33% of total traffic, and organic video traffic (14%) and organic social traffic (11%) account for almost all the remaining traffic.
Note: The above report is for the relatively short 6-week period Dec 21, 2023 through Feb 5, 2024 as the owners didn't previously have Google Analytics set up properly. But the owners say the above report should be a fair representation of general traffic trends.
Free organic search traffic is driven by 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.com (USA) and the combined monthly search volume for each grouping. All data is from Ahrefs.com as of February 5, 2024.
|# of KW Phrases
It's quite noteworthy that 6 out of the 12 #1 rankings contain the brand name in them, and more importantly, get a substantial amount of monthly searches. The 6 keyword phrases are collectively searched for around 390 times per month. This is a clear indication that the brand is both known within the niche and sought after. This goes hand in hand with the fact that the store has had over 2,300 return customers over the years. People absolutely love these products!
The owners have dabbled here and there with a handful of "boosted posts" on social media over the years, but they readily admit that they're engineers (not marketers or sales guys) and don't know the first thing about online marketing. They've created a stellar product and built a great reputation in the industry... but they haven't really capitalized on that reputation to really ramp up sales. They essentially just get sales from free visitors finding their site on the web and return customers coming back for more. An experienced internet marketer with the desire and resources to blow up sales (both with existing products and new products in the same niche, many of which the sellers already have plans & designs for) could take this business to another level.
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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