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Facts and Figures
|Month||March 2019||April 2019||May 2019|
|Month||March 2019||April 2019||May 2019|
Note: Traffic data was provided on May 16, 2019. Enquire for more recent data.
FashionLike.Me is a successful and growing Dropshipping store on Shopify. The store sells clothing and apparel targeted at females.
It was built from scratch over a year ago by the owner and has grown significantly getting traffic from a variety of sources, Facebook & Instagram, email marketing, direct and organic traffic (see traffic section for more details).
It makes $10,577.90 profit per month (avg over last 12 months) with a gross profit margin of 64.22% - Suppliers are mostly based in China, but one is from the US
Being a dropshipping business, there is no need to hold inventory in a warehouse, and there is no risk of losing money on unwanted stock.
How does your business make money?
It is a ecommerce dropshipping store in the fashion niche. We sell our suppliers merchandise through our website and they pack it up and send it to the customer.
Why should someone buy this business?
• Makes profit of $10,577.90/m (avg over last 12 months)
• 64.22% Gross profit margin
• Dropshipping Suppliers based in China and USA
• Currently over 1,000 products being sold
• Requires only 2 hours of work per day
• Work is easy to outsource
• Only marketing with Facebook and Instagram ads for traffic
• Lot's of room to grow into other marketing channels
• Mailing list of 11,000+ subscribers
How can the future owner improve this business?
• Start advertising in different places, diversifying the traffic sources. These could include, pinterest, google ads, banner ads on influencer sites in the niche
• Sponsor a few big Instagram celebrities for additional influence.
• Simply increase the ad spend
• Hire an SEO expert to help you rank for some organic keywords for more free traffic
• Find ways to increase the fairly low ~0.40% conversion rate
• Set up with an affiliate program on CJ.com or Shareasale.com
• Get a phone number people can call to get service.
• Create a live chat support
• Add new product types, like socks and belts.
• Integrate a review function on the site for more social proof.
• Educate yourself on different marketing courses (owner is willing to refer some to the buyer if they wish)
• Work on the brand image and website design to increase trust and reputation.
Why are you selling this business?-
- High levels of Automation
- High Profit Margins
- Large Customer Database
- Lots of Repeat Customers
- Scalable Business Model
Opportunities for a new owner
- Launch New Products
- Improve or Outsource Operations
- Increase Basket Size Per Customer
Key day-to-day operations
- Customer Support / Service
- Launching New Products
- Order Fulfilment
- Content marketing
- Email Marketing
- Facebook Advertising
Here is a list of all the assets that will be included in the sale:
Quality domain name and Shopify store Content
Product Suppliers contact information
No Stock, this is a dropshipper - the goods are delivered to the customer directly from the manufacturer
Facebook and Instagram Ad Campaign set up information and support
20 days of post sale email support from the seller
Shopify account and hosting server (no need to transfer to a new server)
Facebook Page with 83,300+ https://www.facebook.com/fashionlikemestore/
Instagram account with 28,100+ Followers https://www.instagram.com/fashionlike.me/
Social media accounts valued at over 142,500 Euro in marketing costs
Willing to sign a 1 Year Non compete
An email list of 11,847 emails on mailchimp
Contact details of a recommended Virtual Assistant
ABOUT THE OWNER
“My name is Oleksandr, I live in Portugal. I’ve been in this market for around 2 years right now. I was studying at a business school but I did not enjoy my course yet I knew I had to do something of my life. The online / internet has always aroused my curiosity, especially the online stores and I decided to dedicate myself to the study of online stores. Over time I realized that I really liked this type of business. I decided to make my job what I like and created this store. The store I created is profitable and stable over months with good history record.”
Reason for Selling
“I have also always had an interest in real estate. I would like to enter the real estate market now and I want to be 100% focused. I do not want to just close this lucrative store where I spent my time and money, I'd rather to pass the store to someone else. I would love to see the store online and working in the future, it would make me feel good.”
The domain name was created in 2 and half years ago. It sat there for a while until in November 2017, Oleksandr decided to do something with it and created this store from scratch. The main focus of the business was high quality customer service and customer acquisition.
MONETISATION AND INCOME
The primary and only source of income is from the products sold on the site.
The gross profit margin is 64.22% and the Net profit margin is averaged at 28.13%.
The average order size is $171.79.
Current sales conversion rate, of total number of users coming to the site, is sitting at an average 0.40%.
The average income received in the last 12 months is $35,326.50, with an average net profit of $10,577.90 per month. All of these details can be seen in the P&L attached to this listing.
Shopify Income Proof can be found here, or in the attachments below.
I have also compiled all of the necessary stats into a KPIs (Key Performance Indicators) spreadsheet. It highlights information like monthly profit margins, $ per order, refund rates and lots more. You can find this attached to the listing below.
The recent drop in income is due to:
“In October my bank cancelled my credit card due to suspicion of being stolen. Unfortunately, I was waiting for the new card for almost 3 weeks. Everything stopped in October. I used this card to pay for advertising and fulfilment of orders. This was on hold during these weeks because I didn't have a payment method available.
Due to this situation, I needed to refund a lot of customers. Essentially, with the ads stopped, without fulfilling any orders and refunding the customers, it caused a significant drop in revenue that month.
In November we did 40% OFF sales. I did have a lot of orders but the revenue as well dropped by 40%. You can see that the revenue itself was pretty much the average in the past 12 months but the profit was less. I made -40% of profit per order.
Also, I invested the same what I usually invest in advertising each month but due to a lot of other businesses that did advertising for Black Friday and Cyber Monday, the cost of ads was too high. I paid more for ads that brought less customers that spent less.
Basically, the increase of cost for advertising and -40% OFF on all items contributed to the decreasing of profit that month. High cost of ads contributed to drop in traffic.”
The costs of goods and shipping are completely dependant on how many sales are made. There are general transaction fees charged by paypal and credit cards, which is also dependant on how many sales are made that month.
The next biggest expense is of course the advertising and marketing spend on Facebook and Instagram. These costs vary greatly from month to month, from as low as $4,119 (like January 2019) to as high as $23,322 (in August 2018, one of it’s highest grossing months to date).
Software costs (eg. shopify fees, apps etc) are between $325 and $670 per month.
Average refund rate is 3.11% (based on financials, not number of orders). This is very low considering it is an apparel store.
Please see the attached P&L statement that outlines everything month by month.
Google analytics was installed in March 2018. Traffic for previous months were tracked via the Shopify store analytics only. Google analytics data has been verified in the Flippa listing above.
The traffic comes from a diverse number of sources. 58% from social media, 23% direct, 14% organic search and the last 5% from a combination of emails and referrals. Note that the percentages fluctuate from month to month, depending on ad spend.
Here are the traffic (Users) totals month by month:
March (Partial) - 38,327
April - 103,537
May - 15,754
June - 36,568
July - 48,694
August - 86,305
September - 32,345
October - 20,191
November - 62,143
December - 30,990
January - 34,714
The brand has gained a great reputation, which has led to lots of direct traffic and many organic searches for the brand name “fashion like me”.
The top countries are United States, United Kingdom, Canada and Spain.
Site and domain name are hosted on Shopify. These can be easily handed over to the buyer of the site without needing to transfer to a new server.
Email software is using mailchimp. Standard order emails (eg. thank you for your order etc) are handled using the shopify email software
There are a number of shopify apps used to help enhance the site and user experience, which will all be included with the sale.
There is a sales popup software installed that shows other people purchasing products while on the site.
To maintain the businesses, the owner has the following responsibilities:
Customer service enquires
Take care of social media
Update products (put new products, collections…)
Manage the advertising campaigns
The time required is around 2 hours per day. Detailed instructions will be given to the new owner on how to do each of these tasks.
It takes 2-3 minutes to upload a new product using Shopify + Oberlo.
All of these tasks can easily be outsourced. Contact to recommended VAs can be given to the buyer post sale. The reason the current owner has not done this is because the owner wanted to have more control.
MARKETING AND SEO
Discounts are offered on the site Frequently to help increase conversions.
The main strategies used for the Facebook ads are PPE (Page Post Engagement) and Purchase campaigns.
No SEO has been done on the site. The site shows a lot of promise in this area given that it is already ranking for a few longtail keywords. Someone with a bit of experience in this field could make a huge difference to the business by doing some basic on page SEO and building a few links to the site.
Adwords has never been tried or tested as a new marketing source of traffic. Nor have any other paid marketing campaigns, like banner advertising or CPA.
The email list is 11,847 strong, managed with Mailchimp. They are contacted 2-3 times per week with discounts and new arrivals. All of these emails were collected from an opt-in popup on the website and from customers who purchased products from the website.
PRODUCTS AND SUPPLIER
There are a number of products available on FashionLike.Me, including:
There are currently over 1,000 products being sold on the store.
All of which are targeted towards women between 18-35 years old located in US, Canada, Europe, Australia and New Zealand.
Most products are added through the Shopify app Oberlo. The lingerie section is a USA dropshipping supplier.
There are no trademarks or patents on the products. The suppliers are liable for any losses in product quality or transit damage.
All Supplier agreements will be transferred to the new owner without any issues.
It is published on the site that refunds are not available unless it has a defect or the size doesn’t fit. View the detailed Refund Policy here https://fashionlike.me/pages/refund-policy
- Brand assets
- Contracts (written or verbal) with customers and suppliers
- Customer databases
- Marketing materials and collateral
- Social media accounts
- Website files, source code and content
- e-Commerce platform accounts
Post sale support
This is support provided by the seller when transitioning the business to a buyer.