Facts and Figures
We are a dropshipping ecommerce website specialising in unique and interesting cycling apparel and accessories. We have done over 15000 orders and generated a revenue of $580K+ in our first year of operating.
We are staffed with 2 VAs who handle customer service, order fulfilment, content creation and after sales service. We also work with a digital marketing agency, and a conversion optimisation agency. In order to improve our operations, we have met and negotiated with our Chinese suppliers and we now operate with 2 main suppliers, and have solved many payment and logistic issues typical with dropshipping, which means we are able to scale.
How does your business make money?
We make money from the sale of our products through our website.
Why should someone buy this business?
We have a strong track record with traffic and revenue. Our first year generated over $588K in revenue and nearly 500K sessions on our site with a conversion rate of 1.9%. We have a loyal customer base and an average review rate of 4.3 stars out of 5 and 34% customer return rate. We have invested in a conversion optimisation agency and totally revamped the website in Feb 2019, which will aim to further increase conversion rate and revenue and our projected 2019 revenue would be between $750 - 900K.
We have worked and made many operational improvements to allow us to be sustainable and scale. We deal with 2 main suppliers who track our daily orders and offer great payment terms. This solves the issue with payment security issues which occur on certain websites, and we have much greater control over the fulfilment process. Our freelancers are already highly trained in the process and deal with the suppliers directly with little supervision needed.
How can the future owner improve this business?
The new owner can either leave the business at it is and reap the benefits from a money generating self sufficient store, or they could take the site to new heights by implementing their own growth strategy. The new owners can:
Further develop our Facebook and Google ads. Our marketing agency partner have a strong strategy in place for 2019, which aims to grow our audience by 15 - 25%.
Focus on our email marketing efforts. So far, not much email marketing has been done and with the right strategy in place for our growing 15000+ subscribers, the new owners can expect an additional $5 - 10K of revenue per month.
Invest in affiliate marketing. We have had meetings with two large affiliate marketing companies, and by investing some time and money in to affiliate marketing the new owners can bring up to an additional $10K per month.
Work with fitness and cycling influencers and clubs. Sponsorships and influencer marketing is an area we have not yet explored
- Brand and Community Loyalty
- High levels of Automation
- Positive Customer Reviews
- Scalable Business Model
- Well Established and Unique Brand
Opportunities for a new owner
- Launch New Products
- Start Selling into New Markets
- Improve Current Marketing Efforts
Key day-to-day operations
- Website Maintenance
- Email Marketing
- Facebook Advertising
- Google Adwords
- Brand assets
- Customer databases
- Existing manufacturing relationships
- Marketing materials and collateral
- e-Commerce platform accounts
Post sale support
This is support provided by the seller when transitioning the business to a buyer.
About the Broker
Founded in 2017 and based in the UK, Astute Growth Consultants provide M&A and business advisory services as well as act as a full-service website broker for established low to mid-market Content, eCommerce, SaaS and Amazon FBA businesses.