Back to Listings Listing #44069: Apparel & Accessories

Asking Price : $1,620,712

Annual Gross Revenue : $3,397,950

Annual Net Profit : $589,349

Profit Multiple : x2.75

Inventory Value: -

R-Index : 134

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From the Broker

This listing is for an ecommerce, dropshipping, and Amazon FBA business created in October 2013 in the apparel & accessories niche. This business sells a variety of fashion accessories on Shopify and via Amazon FBA (US & CA). The majority of the traffic is driven by Facebook advertising, retargeting, and email blasts to their customer base. Some additional traffic comes from organic searches since the business ranks high for a number of keywords.

While the business has previously sold on two separate Shopify sites (one for US and one for CA), the sellers are in the process of transitioning the business so that all traffic and sales are redirected to one main site — the US .com domain. While most of this business' sales take place on Shopify, a small amount of revenue is earned from Amazon with the FBA side of the business. The Amazon Seller Central accounts for US and Canada are included. The business has also previously had its products sold via deals sites like Groupon & Living Social and some wholesale orders.

As far as fulfillment goes, the business uses a combination of dropshipping for some products and a fulfillment service that holds inventory/ships products for the rest. Of course, the Amazon FBA inventory is held and fulfilled by Amazon.

The business has 3 outsourced customer support employees that the new owner may wish to continue employing. One of the 3 customer support employees manages the other two, and is very organized and loyal. They each work 20 hours per week.

These employees primarily answer customer inquiries and contact customers when there are any issues with their order. They also help do a lot of time-consuming tasks like segmenting email lists, custom inventory counts, staying in touch with our suppliers to get an update on inventory arrival, and many other tasks.

Product development and marketing are the most important parts of the business when it comes to revenue growth. The sellers have found that for every 10 products they've tested, 1 of them will work really well for the business and generate $100K-$5M in revenue. The sellers have just finished developing 15 new product designs for Q1 2018, so the new owner will likely have at least one strong product from this group to start marketing with.

When it comes to social media, there are profiles set up for Facebook, Instagram, Twitter, YouTube, Pinterest, and Snapchat.

  • The Facebook has close to a million subscribers and is used to get feedback on product designs and drive traffic to the store.
  • The Instagram account is used to build brand awareness and solidify the brand messaging. The sellers have tried to avoid selling on this channel.
  • Snapchat is a perfect platform to keep the customers updated with new product launches. The sellers try to create a Snapchat video once per week showcasing their new designs, encouraging subscribers to engage by sending in their video feedback.
  • Pinterest is used to drive more sales to the website.
  • The YouTube channel showcases product videos.

 Site Highlights

Average Monthly Revenue: $283,163

Average Monthly Expenses: $234,050

Average Monthly Net Profit: $49,112

* We are using the last 12 months to determine the averages.

Assets Inlcuded in Sale

Included in the sale of this business are 2 domains (CA and US), site content/files, 2 Shopify accounts (CA and US), 2 Amazon Seller Central accounts (CA and US), email accounts, email list, and social media accounts (Facebook, Instagram, YouTube, Pinterest, Snapchat, and Twitter).

Work/Skills Required

The sellers put a lot of focus on marketing products on various advertising channels that include Facebook, Instagram, Google and Amazon. They try to design a new collection each month. This includes writing descriptions, photographing products, cropping the image, and uploading it to the Shopify backend. They then make ad images and videos for these products and set up advertising campaigns.

There is also some monthly simple bookkeeping work done on a monthly basis.

The business requires 2 people that work 40 hours each week.

Reason for Sale

The sellers have decided that they would like to each start their own businesses, instead of working together and building this business.

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Listed By

Sale Pending: No

First Seen: Mon, Mar 5th 2018

Last Updated: Tue, Mar 6th 2018

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