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Dropship eCommerce Business Netting $2,000/Month
Asset Sale Description
Clothing eCommerce business with 22,000 monthly pageviews
Seller Interview: UrbanMen.co BUSINESS 1. Please state your full name and company name, if it’s a corporate entity selling the website [Known to Broker] 2. Please briefly describe the business model Clothing drop shipping website. Advertise on Facebook, fulfil orders through aliexpress and ship to the customer. Most revenue comes from advertising a free product such as sunglasses or watches, charging 9.95 for shipping and profiting off of that. 3. When was the business established? February 24th, 2016 4. How has the business evolved since it was first established? Business has scaled with success through spending more on ads. Revenue is directly related to how much is spent on FB ads per day. I don’t have time to fulfil the amount of orders that I received in April and May and have had to scale back the FB ad spend. 5. Who is your typical customer? 18-24 YO Male 6. Are you the original owner of the business? If not, when did you purchase it and how has it evolved since? Original owner. 7. Why is the business being sold? I don’t have time to run this as well as my other projects, and would like more capital to put towards them. 8. Are you looking to sell the company (stock sale) or just the assets of the business (asset sale). Asset sale. PACKAGE 1. Please list all domain names that are included in the sale urbanmen.co 2. Are there any social media accounts included in the sale? If so, please list them along with the URLs to such accounts. Urbanmen facebook page 3. Are there any mailing lists included in the sale? If so, which service providers are such lists held with and how many subscribers do they have? No, however one could be created with the 3,465 customer orders. 4. Does the sale include existing customer data? If so, in which format is this provided and how extensive is the customer database? Woocommerce database, 3465 customer orders including name, email and mailing addresses. 5. Are there any rights, trademarks, intellectual property included in the sale? No. INVENTORY/SUPPLIER RELATIONS 1. Does the business carry any inventory? If so, approximately how much inventory does the business keep at any given time and is any current inventory included in the price? No inventory, all dropshipped through aliexpress. 2. How many suppliers does the business use and for how long has the business used these suppliers? Whatever store in aliexpress the product comes from. 3. Does the business benefit from any volume pricing arrangements with any of its suppliers? No 4. Explain your payment terms with your supplier(s)? Pay per order. 5. Do you have written agreements with said suppliers in place, and are such agreements transferable to the new owner? No 6. How often and through which channel do you pay your suppliers for purchased goods? Per order. 7. What is the average lead time from the day order is placed until customer receives the good. 7-10 days 8. Have you changed suppliers in the past, if so, why? No OPERATIONS & MAINTENANCE 1. Please provide a breakdown of ownership and the organizational structure of the business. I do everything involved with business. 2. Please provide a breakdown of the operations of your business [Manage FB ads] - [adjust budget, create new ones] - 3 hours / week - write copy - adjust budget [Process Orders] - [fulfil orders through aliexpress] - 21 hours / week -order is placed through site -order is placed on aliexpress with customer information 3. Does the owner of the site need any specific skillsets in order to successfully maintain and manage the site? Some FB ads knowledge would be advantageous, however I will help with thos and give them my audiences which are working. 4. How do you handle customer support and what is the average volume? Through email, couple per day when selling high amounts. 5. Do you employ any people or use any freelancers and if so, are such contracts accounted for on the Profit & Loss Statement and transferable to the new owner? No TRAFFIC & MARKETING 1. What are the primary traffic sources of the site? Facebook ads 2. Have you done any Search Engine Optimisation? If so, what level of SEO effort is required for the site to maintain its current traffic levels? No 3. To your knowledge, has the site ever received any search engine penalties (manual or algorithmic)? None 4. What level of SEO effort is required for the site to maintain its current traffic levels? None 5. Do you or have you ever purchased traffic? If so, please provide a brief overview No 6. Do you run any other marketing campaigns, such as display advertising, social media marketing, offline advertising or anything else? FB ads 7. Why is the traffic volatile? Do you turn of Facebook ads from time to time? If so, why? I turn off facebook ads when I know I wont have time to fill orders. This results in less than optimal FB ads and so if the client that purchases the site can run FB ads 24/7 they will see even better conversion rates as FB favors ads that are left running longer. This can be seen by the drops in traffic as you have noted. FINANCIALS 1. Which payment processor(s) does the website utilise? Paypal, Stripe 2. Please confirm that all revenue sources are transferable to the new owner Yes 3. Are you able to provide live revenue verification? Yes 4. Is the website’s revenue kept separate from other businesses and/or personal accounts? No 5. Can the website’s revenue be accurately tracked back to the website, i.e. do payment descriptions/details include the website’s name or reference to the website’s products? Yes 6. Please provide a brief overview of your average profit margins and how have they evolved over the last 12 months? Profit margin on free item with shipping is usually 70-80%. Margin on clothing is 40-50% 7. What is the site’s average Refund/Return rate over the last 12 months? What is the primary reason for the returns? ~5% due to longer shipping times than major ecommerce websites. 8. What are the main expenses of the business (please list any recurring expenses that account for more than 1% of overall revenue) Facebook advertising COGS 9. If necessary, do you have tax returns available to support your revenue claims? No 10. Why was revenue much higher in March, April and May than the rest of TTM? Revenue is directly tied to ad spend. 90% of traffic comes from facebook ads and the more I spend the more revenue I receive. I was spending much more in those months as I was focusing on the project full time, but had to stop spending as much as my time was taken elsewhere. 11. How did the business earn $1,438 in 4 days in February while only spending $92 on advertising? I posted on several subreddits including r/deals r/dealsreddit etc to get free traffic. I also posted my site on several shopping deals sites. I semi-regularly just drop a link on reddit to my site and can see anywhere from 20-100 sales from each post. TECHNICAL 1. What platform does the website use? (e.g. WordPress, OpenCart, OSCommerce, etc.) WordPress, woocommerce 2. Has the website changed platforms in the last 2 years? No 3. Where is the site hosted and does this need to change after purchase? GoDaddy, no COMPETITION 1. Please describe your main competitors violentgentlemen.com gentlemenjoggers.com 2. What makes the website better than its competition? Customer support MISCELLANEOUS 1. Do you own any other internet-based businesses? If so, are any of them related to the website being sold? No 2. Are you willing to sign a 3-year non-compete contract in the industry that the website operates in? Yes 3. Will you provide 1-3 months of post-sale support & training, in order to ensure that the buyer is able to fully take over the business and its operations? Yes 4. What are the primary growth opportunities that you see for the business going forward? Spend more on FB and revenue will skyrocket. 5. Are there any geographical limitations to the potential buyer of the business? No
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