Flippa
SOLD!
Business Name

Confidential

Business Model
e-Commerce
Industry
Design and Style

$500,000

Asking Price
Multiple 1.7x

+ $25,000 Inventory

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Consumer direct online jewelry business with strong YOY growth. With an AOV of around $100 and $1.3m it's poised for growth.
This business owner has manually entered their financials

Facts and Figures

Location
United States
Date of Founding
2016
Full-Time Staff
1 to 10
Annual Revenue
$1,308,799
Annual Expenses
$1,020,290
Annual Net Profit
$288,509
Profit and Loss
Evidence of Revenue
Note: Where the business is less than 12 months old the annualized data represents total sales for the period of operation.

Recent Performance

Month February 2019 March 2019 April 2019
Revenue $121,659 $98,780 $49,309
Expenses $80,293 $78,556 $36,332
Net Profit $41,366 $20,224 $12,977

Business Description

This business is a direct to consumer eCommerce business selling affordable luxury jewelry. Today, most sales activity is direct (our site) with a growing Amazon channel.

Check out the webinar: http://www.youtube.com/watch?v=J5h59KtrHgc&t=2m25s

The business has grown substantially since it was first acquired on Flippa over two years ago...

Sales Success -
The business operates with a 90% gross profit margin and AOV of $100. This AOV is considered outstanding with the reported industry average being just $76.

User Acquisition -
PR activity has helped. This year we've been featured on Wendy Williams and The Real.

Additionally, there's an existing strong following. 30% of traffic is direct and our social following is growing:
- 43,000 Instagram followers
- 50,000 subscribers

Brand Value -
The brand has been trademarked and registered with the USPTO and our demonstrated customer obsession has driven over 200 five star reviews on TrustPilot.

How does your business make money?

Steps as follows:
1. We outsource the design and manufacturing
2. We merchandise for the site (turnkey)
3. Sell direct to the customer

Why should someone buy this business?

After buying the business on Flippa 2 years ago we have invested and optimised the business. It's performing exceptionally well and customers love our product. The opportunities are fantastic:

  1. Our Amazon segment has grown 400%. Off a low base there's huge additional opportunity to grow this channel.

  2. Customers love us. Harness this network to grow an additional following including the launch of a referral program.

  3. Access up to $150K in pre-approved non-recourse financing from Paypal Capital / Shopify Capital financing.

  4. Inventory is also negotiable as a flex solution can be provided so that new owners don't have to hold much inventory

  5. With the purchase of the business includes $50K worth of high level courses from marketers such as Ezra Firestone, Molly Pittman, Ryan Deiss, and other full stack marketers.

How can the future owner improve this business?

Specific and in-depth detail can be provided. In short:

  1. SEO. There's been no / little effort to optimise our site for additional organic and direct acquisition.

  2. Paid Search / FB ads. We are less skilled here. Existing ad costs represent 50% of revenue. We know there are efficiencies to be gained here.

  3. Inventory/COGS. Currently inefficient. We've recently received quotes for less expensive supply and delivery. There are further efficiencies to be gained with a full cost audit. The existing product is a very high quality. Range expansion may include substituting the existing 18k Gold Plated or Sterling Silver for more cost efficient 18k Plated on brass.

  4. Product expansion. Today, we sell mostly rings. There's opportunities to expand the range significantly.

Why are you selling this business?

We had originally bought this business on Flippa over 2 years ago. Since then we've grown the business at least 50x.

I used to work in Private Equity. I'll be partnering with a firm to acquire a bigger business post exit.

Business Strengths

  • Customer Service
  • High Profit Margins
  • Low Return Rate
  • Well Established and Unique Brand
  • Overall Market Size

Opportunities for a new owner

  • Launch New Products
  • Improve Current Marketing Efforts
  • Advance or Explore Retail / Distribution Partnerships

Key day-to-day operations

  • Managing Staff
  • Customer Support / Service
  • Managing Inventory
  • Product Sourcing and Design

Marketing

  • Email Marketing
  • Facebook Advertising
  • Instagram Advertising

Inventory

Value
$25,000

Assets

  • Brand assets
  • Contracts (written or verbal) with customers and suppliers
  • Custom technology
  • Customer databases
  • Domains
  • Existing manufacturing relationships
  • Inventory on hand or on order at the time of closing
  • Marketing materials and collateral
  • Policy and Process documents
  • Registered trademarks
  • Social media accounts
  • Website files, source code and content
  • e-Commerce platform accounts
  • Google Adwords

Social Media

Facebook
11K followers
Instagram
43K followers

Post sale support

This is support provided by the seller when transitioning the business to a buyer.

Included

Confidential

Verified Account

United States