Flippa
FOR SALE
Business Name

My Lily Deals

Business Model
e-Commerce
Industry
Health and Beauty

$1

Asking Price
Drop shipping e-commerce store that sells women's shapewear.
This business owner has manually entered their financials

Facts and Figures

Location
United States
Date of Founding
2017
Full-Time Staff
Owner Operated
Annual Revenue
$769,848
Annual Expenses
$689,172
Annual Net Profit
$80,676
Profit and Loss
Note: Where the business is less than 12 months old the annualized data represents total sales for the period of operation.

Business Description

Overview

Mylilydeals.com is a profitable dropshipping store that sells women's shapewear products. The site was started in March 2017. In the 29 months since it started, the site has generated over $1,812,296.77 with a net profit of $194,918.76.

In 2018, the store averaged $64,154/mo in revenue and $7,546/mo in bottom-line profit per month.

YTD for 2019, the store has averaged $35,284/mo in revenue and $3,446/mo in bottom-line profit per month.

Approximately 95% of the store’s orders are fulfilled by two suppliers. (The remaining ~5% of orders are fulfilled by a handful of other suppliers). Orders are filled from within in the United States. Orders ship out within 1 business day and, for US orders, typically arrive within 3-5 days. All of the suppliers are aware that the site is being sold and have confirmed that they will be happy to transfer the accounts to the new owners with the same pricing and terms.

How is the business operated?

The store runs on the Shopify shopping cart platform and has a Virtual Assistant (VA) in place who handles the vast majority of the day-to-day operations, including order fulfilment, customer service and Facebook comments/interactions. The current owners estimate that with the VA in place, the site only requires about 10 hours of owners time per week at its current sales/profitability level, though at peak performance will likely need 15-20 hours. See the Store Operations section below for an overview of the tasks the owners perform themselves. The VA has indicated that she is willing to continue working for the new owners after the sale.

How does your business make money?

B2C e-commerce sales. All products are drop shipped.

Why should someone buy this business?

The store runs on the Shopify shopping cart platform and has a Virtual Assistant (VA) in place who handles the vast majority of the day-to-day operations, including order fulfilment, customer service and Facebook comments/interactions. The current owners estimate that with the VA in place, the site only requires about 10 hours of owners time per week at its current sales/profitability level, though at peak performance will likely need 15-20 hours. See the Store Operations section below for an overview of the tasks the owners perform themselves. The VA has indicated that she is willing to continue working for the new owners after the sale.

The current owners started new full-time employment, this past year, that quickly became increasingly demanding. With the way this site has grown, they simply haven’t had the time to continue managing this online store, which is why we have decided to sell it.

How can the future owner improve this business?

The owners have identified the following areas that a new owner can quickly implement to achieve growth:

  • Start Selling on Amazon, eBay and Other Marketplaces
  • Expand the Product Catalog
  • Start Advertising on Pinterest and Other Women-Focused Sites & Hang-Outs
  • Increase the Average Order Value (AOV) by Implementing Post-Sale Upsell Capabilities
  • Influencer & Affiliate Marketing
  • BONUS OPPORTUNITY! Start Using a 2% Cash-Back Credit Card for Virtually All Expenses

See seller notes for further details on growth opportunities

Why are you selling this business?

The business is owned by two individuals. Both of whom have full-time employment. When they first started, the jobs they were working allowed them to devote more time to the business. Since starting, however, both owners have switched jobs. It has become apparent to them that in order to run the site at peak efficiency, it requires more time than they can devote.

Business Strengths

  • Large Customer Database
  • Length of Operation in Niche
  • Outsourced Order Fulfilment
  • Scalable Business Model
  • Turn-key Operations

Opportunities for a new owner

  • Start Selling into New Markets
  • Improve Current Marketing Efforts
  • Increase Basket Size Per Customer

Key day-to-day operations

  • Content marketing
  • Adwords Maintenance

Marketing

  • Facebook Advertising
  • Google Adwords

Seller Notes

*What happened in May 2018? *

In May of 2018, two key things were taking place: first, it was right when the two owners were switching firms for their day jobs. As a result of this, we were unable to devote the same amount of time to the site. Second, this was right at the time the Cambridge Analytica scandal was unfolding. As a result of this, Facebook was making a lot of drastic changes to their platform, and the result of this was a few rocky months for anyone that advertised on their platform. To combat both of these, we substantially scaled back the level of advertising dollars we had previously been spending, and naturally this correlated to a decline in sales as well.

Why have the sales been low lately?

The long and short of it is that the owners simply do not have the time to manage this site anymore. You can see that the ad budgets have been scaled back, and this business is such that requires the majority of customers to be acquired through paid advertising. The infrastructure and data is in place for the new owner to quickly scale the business back to its peak numbers with a correlating amount of money being spent on advertising.

In looking at your financials, what is included in the “other expenses” tab?

The “other expenses” tab includes all remaining operating expenses. Specifically, it includes our VA, our shopify subscription fee, and all app fees.

Growth Opportunities Continued:

• Start Selling on Amazon, eBay and Other Marketplaces - As of now, the business currently only sells on its own stand-alone website. There is certainly a lot of potential to start selling the products on Amazon, eBay and other high-traffic marketplaces on the web.

• Expand the Product Catalog - The store doesn't have a terribly large catalog. For the types of products the store sells, adding additional brands and styles/colors at different price points would no doubt increase sales and the conversion rate. (It's also worth noting here that the store currently lists its products for a fair amount less than some of the other websites in this niche. The current owners haven't experimented much with different pricing strategies, but think it's quite probable that raising prices 10-15% would have very little impact on the conversion rate and increase the bottom line.)

• Start Advertising on Pinterest and Other Women-Focused Sites & Hang-Outs - The current owners haven't begun advertising on Pinterest yet, but were recently approached by Pinterest’s sales department as a business they would like to cultivate a relationship with. They have now had several conversations with Pinterest's team and have been told that Pinterest only selects a small number of brands each month to receive a dedicated team that would work to grow the site's sales through Pinterest. Especially since the store's target audience is women, Pinterest could prove to be a very lucrative advertising avenue (as could other social sites and hang-outs frequented by women).

• Increase the Average Order Value (AOV) by Implementing Post-Sale Upsell Capabilities - The current owners set up a unique post-sale upselling technology that will allow the store to sell additional, highly related products to customers who have just recently completed an order (i.e. within the last couple days) without requiring the customer to go back through the checkout process or provide their payment information again. Although the current owners hasn’t had the time to implement a post-sale campaign with this new technology, he will work with the new owners to pass on the technology. For similar stores, this strategy has proven to be an incredibly effective way to increase AOV and profitability.

• Influencer & Affiliate Marketing - This is the ideal niche/product line to use "influencer marketing" and/or affiliate marketing to generate additional traffic and sales. There are literally tens of thousands of related but non-competing sites and hundreds of "influencers" (people with tens/hundreds of thousands of followers) relevant to this market who you could pay either a fixed fee or a percentage commission to send visitors to the site.

• BONUS OPPORTUNITY! Start Using a 2% Cash-Back Credit Card for Virtually All Expenses - The current owners use a credit card to earn oodles of airline miles for personal use. If you were to instead switch over to using a 2% cash-back credit card (such as the Capital One Spark Cash credit card), the business would instantly become even more profitable than it already is. If you were to charge the COGS ($19,975/month), advertising costs ($32,893/month), Shopify fees ($553/month) and VA and subscriptions ($1,918/month) to a 2% cash back credit card, you'd instantly add ~$1,107 of pure profit to the bottom line every month!

Final Comments:

The suppliers for the store are very reliable and easy to work with. As mentioned above, this store is 100% drop-shipping based, meaning that the suppliers ship products directly to the customers. This means that you do NOT have to pre-purchase large quantities of inventory, store products in a warehouse, or manually ship out orders yourself. When an order comes in, the VA simply passes on the order to the supplier, and the supplier ships the order directly to the customer. Dropshipping is hands-down the easiest store model and completely eliminates the need for working capital as well as the risk of not being able to sell large stocks of inventory you've pre-purchased.

As explained above, the vast majority of orders are fulfilled by 2 suppliers, with facilities in the United States. With few exceptions, both of these primary suppliers (which account for ~95% of all orders) ship within one business day of when the orders are received. Orders within the US are shipped via USPS with tracking, and typically arrive within 3-5 business days, which ensures high customer satisfaction. Orders to other countries obviously take a little longer to arrive, but shipments are still quite fast (especially compared to other clothing boutiques) for most countries throughout the world. For a slight additional fee, we offer express international shipping, which takes 3-7 business days to arrive and most customers are happy to pay for this option.

All suppliers are aware that the store is being sold and have agreed to give the new owners the same pricing and terms that the current owners has been getting.

Assets

  • Brand assets
  • Customer databases
  • Domains
  • Existing manufacturing relationships
  • Marketing materials and collateral
  • Relevant email accounts
  • Social media accounts
  • Website files, source code and content
  • e-Commerce platform accounts
  • Google Adwords

Social Media

Facebook
68K followers
Instagram
6.1K followers

Post sale support

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

Included

About the Seller

Steven Sabel

Verified Account

United States

Highly entrepreneurial business consultant and attorney. Steven received his J.D. from UCLA School of Law.

Contact