For sale is an eCommerce business that creates gag gifts for white elephant parties, music festivals and other places where drinks are expensive and overpriced. The main product, allows customers to drink whenever, wherever they like, discreetly. The company has been in business for 3 years, owns all IP and has the trademark on the main product.
They use multiple merchant sales channels. Shopify is used for the main site and they generate additional revenue from Amazon and eBay. All of which funnels into a shipping system called Shipstation where all of the labels for the various sales channels are printed.
Highlights & Key Assets:
o Trademarked product.
o $20,000 injection mold based in China is a key asset. All of the product is made over there and shipped to the US via ocean/air freight. The manufacturer has the capacity to produce 40,000 units/month.
o Finished product, proven concept, proven market for it selling over 20,000 units over a couple of years.
o High ROI margins – The margins on the site range from 330% to 800% selling at MSRP of $29.95 and product costs around $5 to produce.
o Email lists: The business has an email list (built directly from the website) of over 7,000 customers who have given permission to email them marketing material.
Owner currently handles: uploading tracking, shipping, sending invoices, negotiating deals with potential vendors, negotiating with suppliers for better deals and updating new deals on the website. Making sure there is enough lead-time between when on inventory/sales and making sure that all inventory is accounted for. Much of this (likely except for negotiating with vendors and suppliers) could be outsourced to a VA (virtual assistant).
The customer service is minimal and is all done in house by the operating owner. Most customer services is for customers emailing to ask when their product arrives if they miss the order email with the tracking number.
Full support and training will be provided. This is negotiable depending on your needs. The owner is committed to making it a success for a new owner.
Reason For Selling:
Owners are liquidating multiple businesses to put more focus on the businesses they want to grow. One of the co-founders has a VC backed app business that they need to focus on.
Sale Pending: No
First Seen: Thu, Feb 16th 2017
Last Updated: Sat, Oct 21st 2017