Facts and Figures
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Note: Traffic data was provided on 31 July 2019. Enquire for more recent data.
The business works by selling K-Pop related clothing and accessories via our online storefront. We use paid traffic from YouTube to generate initial visitors then remarket to them on Facebook, YouTube, Search and Google Display Network. These activities combined generate sales. Once an order is received, we use the shopify app provided by our supplier to place orders. Once our order is placed our supplier acquires goods (if not in stock) from the manufacturer and ships the products directly to our customer.
Once shipped orders in the US & UK are delivered in 4-6 business days in a branded box with our logo which keeps our customers happy and builds loyalty.
How does your business make money?
The store makes money using the dropshipping business model. We drive sales using paid traffic from YouTube and Google Display then fulfill orders using our supplier in China. We profit when our order value is greater than our cost to acquire a customer + product cost .
The products we carry are heavily skewed towards sweatshirts and apparel. Cost of goods for these items range from $10.99 - $16.99 and we retail them from $29.99 - $39.99. We also charge $7.95 shipping per order which helps to increase our margins. A buyer can easily work with our supplier to bring more products into the store.
Why should someone buy this business?
This site is perfect for anyone looking to take over a ready to go successful business. It's extremely to run and the results we had can be replicated. We will provide the buyer with guides on marketing methods we succeeded with to give you a head start.
K-Mall was an excellent business for us, as shown by the exceptional traffic and sales figures in the months active. However, the store has so much more potential as many avenues have not yet been explored. Our main source of traffic was YouTube but we did not successfully market via Facebook or Email marketing as we lacked knowledge in executing on these channels. This provides a great opportunity for a buyer with marketing knowledge as they can leverage our customer data to market to new audiences and cross-sell existing customers.
How can the future owner improve this business?
Leveraging our marketing strategies you can aim to replicate our results with expanded creative to generate a healthy monthly profit.
However there are many other avenues you can take to expand and grow, for example:
- Explore the use of social medias (namely facebook using lookalike audiences)
- Email marketing to existing customers (3K+ customers)
- Add new products
- Rank organically to get free traffic
Traditionally K-Mall has consistently provided a healthy profit margin of 28% - 40% with our largest spend being on paid advertising. Depending on the strategies used by the buyer this can certainly be increased.
Why are you selling this business?Over the past 6 months we have shifted our business model to place a larger emphasis on sites using the high ticket dropship business model. As such, we have not spent time to refresh creative or expand our marketing efforts which led to the decline in traffic and sales volume. This left K-Mall idle while we have been spending time on other sites. Our intention is to re-invest the proceeds from this sale into our other sites. That said, there is an opportunity for the buyer to refresh the creative used for ads(new videos) and/or implement new marketing strategies to pick up where we left off.
- High levels of Automation
- High Profit Margins
- Large Customer Database
- Turn-key Operations
- Overall Market Size
Opportunities for a new owner
- Launch New Products
- Improve Current Marketing Efforts
- Increase Basket Size Per Customer
Key day-to-day operations
- Customer Support / Service
- Order Fulfilment
- YouTube Advertising
- Brand assets
- 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.
About the Seller
Former software engineer delving into the world of e-commerce.