3 y/o Dropship eCommerce Netting $25,000 Annually

San Francisco, CA (San Francisco County) (Relocatable)

Flippa, The #1 Websites Brokerage

Asking Price:$55,000

Cash Flow:N/A

Gross Revenue:N/A





3 y/o Dropship eCommerce Netting $25,000 Annually

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Business Description

100% Dropshipped Website with 120,000 Monthly Pageviews


1. Please state your full name and company name, if it’s a corporate entity selling the website

[Known to Broker] - Guitar Kit World.

2. Please briefly describe the business model

Guitar Kit World is a drop shipping business selling unassembled kit electric guitars via our website. All orders are sent to our manufacturing partner in China every Friday. The manufacturer sends us an invoice within 3 days of the orders being placed. The manufacturer then sends the guitars directly to our customers using our branded packaging.

3. When was the business established?

The website was established in 2013. It was transformed into an eCommerce store in 2014

4. How has the business evolved since it was first established?

The website started as a blog, generating income via Adsense and Amazon. I contacted suppliers in China once I had a better understanding of the market and moved to a drop ship eCommerce model.

5. Who is your typical customer?

We have two types of customer.

Professional Luthiers, looking to save time and money by having us manufacture what they would normally do more expensively. These customers know what they want and require very little after sales support.
First-time guitar builders who have no experience building guitars. These customers generally have more questions and require some after sales support.
6. Are you the original owner of the business? If not, when did you purchase it and how has it evolved since?

Yes, I built the website and established the supplier relationship.

7. Why is the business being sold?

I have recently become accredited in a new field that has been a life long passion and would like to sell the business to finance this career change.


1. Please list all domain names that are included in the sale


2. Are there any social media accounts included in the sale? If so, please list them along with the URLs to such accounts.




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?

Mail Chimp (941 subscribers at time of writing)

4. Does the sale include existing customer data? If so, in which format is this provided and how extensive is the customer database?

The site uses Woo Commerce which contains historical data including best selling guitars etc. I have also kept a Google drive spreadsheet which shows an average number of days for delivery, average shipping costs per country, product pricing and money paid to suppliers. I also have a record of all invoices issued by suppliers.


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 is kept.

2. Where is the business’s inventory kept? If in a third party warehouse or storage unit, can the rental agreement / lease of such warehouse or storage unit be transferred over to the buyer?

No inventory is kept.

3. Is it necessary for the business to keep its inventory in a particular country or a state, in order to retain the current profitability?

No, but there is the opportunity to hold and sell stock guitars as our competitors do which can then be delivered much faster e.g. 7-10 days as opposed to our current delivery window of 60 days.

4. How are shipments into and out of the warehouse / storage units managed?

Guitars are made to the customer's specifications and then shipped via Ali Baba Logistics. All orders are placed under Ali Baba Trade Assurance which ensures the manufacturer must comply with terms agreed upon in regard to timely delivery and quality of workmanship.


1. What are the primary traffic sources of the site?

Google, some social traffic, and some direct traffic

2. Have you done any Search Engine Optimization?

Yes, the site currently ranks in position 2 (does move around between 1 and 3) for its primary keywords:

Guitar Kits (5400 monthly searches)

Guitar Kit (3600 monthly searches)

Electric Guitar Kits (1600 monthly searches)

Guitar Building Kits (880 monthly searches)

Along with an additional 900+ keywords that bring traffic.

3. To your knowledge, has the site ever received any search engine penalties (manual or algorithmic)?

Definitely not, in the rare cases, I have done link building it has been via outreach. I have never gone against Google’s TOS.

4. What level of SEO effort is required for the site to maintain its current traffic levels?

Very little, the on page SEO and user data e.g. dwell time, time spent on site are strong enough to remain ahead of the majority of our competition without additional work. Very little additional SEO has been performed on the site in the past 1-2 years.

5. Do you or have you ever purchased traffic? If so, please provide a brief overview

Yes, Adwords. Data is available via Google Analytics as conversion rate tracking has been set up.

6. Do you run any other marketing campaigns, such as display advertising, social media marketing, offline advertising or anything else?

None, we have a presence on the major social channels but these have never been utilised. We do have social sharing buttons on all product pages which do help bring in around 100 visitors per week from social traffic.

7. How does the site rank for related keywords?

Very well, position 1-3 for all major keywords targeted.

Why is there no traffic data prior to Nov 2014? Did you switch analytics accounts or is this when analytics were first installed? Do you have other analytic data prior to Nov 2014?

Yes, I was forced to switch accounts after selling two previous sites that were on the same Analytics account.


1. Which payment processor(s) does the website utilize?

Stripe and PayPal

2. Please confirm that all revenue sources are transferable to the new owner

I believe so, however the bank account associated with the business is based in Australia so this would need to change if sold to a non-Australian based resident. It would simply be a cause of transferring the Stripe and PayPal accounts to the new owner who can then attach their own bank accounts to each.

3. Are you able to provide live revenue verification?

Yes, I would be happy to provide any information requested.

4. Is the website’s revenue kept separate from other businesses and/or personal accounts?

Yes. There is a primary bank account that is only used for Guitar Kit World, along with a Paypal business account and stripe payment gateway that is only used for this business.

What date did the site switch from an Amazon affiliate to an eCommerce site generating revenue?

We made our first product sale in July 2014, prior to that date the site was an affiliate site.

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 it can.

6. Please provide a brief overview of your average profit margins and how have they evolved over the last 12 months?

It’s difficult to provide an accurate estimation as this is based on the custom options customers choose but on average we take between $60 - $100+ dollars per sale.

7. What happened to the revenue in May, June, July this year?

We were forced to shut the shop as the supplier was not keeping up with orders.

8. What is the site’s average Refund/Return rate over the last 12 months? What is the primary reason for the returns?

6.8% (From July 1 2015 - July 1 2016)

0% (July 1 2016 - Current Day)

I acknowledge this number is high however almost all of these were canceled prior to the order being delivered and not due to quality issues or poor workmanship. Our previous supplier simply could not keep up with the value of orders we were sending them and as a result, I offered refunds to all customers who’s orders were overdue. This situation has now been rectified as we are now using a new supplier and all orders are placed through Ali Baba’s Trade Assurance program (http://tradeassurance.alibaba.com/). The Trade Assurance program ensures the business against late orders, product quality, and payment protection.

9. What are the main expenses of the business (please list any recurring expenses that account for more than 1% of overall revenue)

We pay the manufacturer for the guitar for each order. They can vary from $150 (USD) through to $350+ including shipping.

10. If necessary, do you have tax returns available to support your revenue claims?

I have a Google Spreadsheet showing all orders for the previous financial year and the payments made to the supplier.

11. Why did the business generate zero revenue between January and April 2015?

We changed suppliers, I needed 3 months to order samples from various suppliers before making a decision on who to use going forward.


1. How many suppliers does the business use and for how long has the business used these suppliers?

We have used a total of four suppliers since being in business. Our current supplier has been with us since July 1, 2016.

2. Does the business benefit from any volume pricing arrangements with any of its suppliers?

No. but my supplier has offered discount pricing if ordering in bulk e.g. stock guitar containers.

3. Do you have written agreements with said suppliers in place, and are such agreements transferable to the new owner?

All orders are placed through Ali Baba’s Trade Assurance program. This agreement covers the business and not myself personally. A contract has also been drawn up which covers all aspects of the business including delivery times and specifics regarding workmanship and quality standards. The contract is available upon request.

4. How often and through which channel do you pay your suppliers for purchased goods?

I use Ali Baba Trade Assurance to pay the suppliers and am invoiced for each order. This is done weekly (Friday).

5. Anything else worth mentioning?

My supplier handles shipping. I pay a combined amount for the guitar and shipping, packaging etc.

If needed, the average cost of shipping from China to the USA is approx. $93 and carton cost is approx. $4.60


1. How much time, in average, does it take to operate and maintain the site, per week?

It does vary, but on average 10 - 15 hours

2. Please list all owner’s responsibilities

Answering customer enquiries via live chat and email.
After sales support if the customer has an issue with assembly.
Managing supplier invoicing and payment
Managing supplier delivery times (we receive quite a few status updates from customers)
SEO (this has evolved to just tracking keyword positions and monitoring traffic and associated data)
3. Does the owner of the site need any specific skill sets in order to successfully maintain and manage the site?

You would need to have a good working knowledge of electric guitars and guitar assembly and finishing. We also have an agreement with the supplier if there are any customer questions that require more detailed information. This is included in the contract mentioned above. The manufacturer has 48 hours to answer any such queries, however, it is expected that the majority of questions are answered in-house.

4. How do you handle customer support and what is the average volume?

2-7 emails per day on average. The majority of emails are regarding custom options outside of what we offer or current customers enquiring about delivery times.

We are also often asked specifics about the guitars e.g. what type of hardware or pickups are supplied etc. In some cases, I need to go back to the supplier and request this information which can take a day or two. I then add these to our FAQ section so as not to trouble the supplier too much with customer support questions.

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, I do not employ anyone.


1. What platform does the website use? (e.g. WordPress, OpenCart, OSCommerce, etc.)

Wordpress, Woo Commerce and a variety of plugins

2. Has the website changed platforms in the last 2 years?


3. Where is the site hosted and does this need to change after purchase?

The site is currently with Rackspace on my own reseller account. I would prefer it was moved post purchase but would be happy to negotiate continuing to host the site.


1. Please describe your main competitors




2. What makes the website better than its competition?

We offer a range of custom options that our competition cannot match as they don’t ship direct from the factory. Having options appeals to our customers.

Unlike our competition, we never run out of stock as all guitars are made to order.

We outrank our competitors for the majority of keywords targeted online giving us a greater presence on Google.


1. Do you own any other internet-based businesses? If so, are any of them related to the website being sold?

Yes I own several websites, however, none are connected to guitarkitworld.com

2. Are you willing to sign a 3-year non-compete contract in the industry that the website operates in?

Yes, I am.

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?

I’d prefer to limit this as I will be very busy once the business is sold, however, am happy to negotiate.

4. What are the primary growth opportunities that you see for the business going forward?

I see many opportunities for growth that I have been unable to act on due to time constraints or because I haven’t had sufficient faith in our delivery times and didn’t want to scale a problem.

For one I have never contacted our mailing list of over 900 subscribers and have rarely utilised social media in any capacity.

I had a number of plans to do this including advertising on Facebook to our competitor's followers as we offer more custom options than they do. I would have also tried selling the product via eBay and Amazon and even writing a book on guitar assembly and set up and selling or giving away for free onamazon.com to increase awareness of the business.

In short, I have relied on SEO, there are many marketing channels as yet untested.

5. Are there any geographical limitations to the potential buyer of the business (i.e. do they need to be based in a particular country, region or time zone to handle customer enquiries or to take over the financial and other accounts)?

Being based in Australia has been difficult as the majority of customers are based in the USA making it difficult to offer speedy responses to customer questions. I’m convinced this costs us sales on a regular basis.

We also experience declined transactions (I can show records of this) due to the primary bank account being based in Australia whereas the majority of our customers are not. I have written confirmation of this from my payment gateway provider (Stripe)

6. Do you have anything to add to the above?

I believe this is a very good opportunity for the right person but they would require some knowledge of electric guitars as some of our customers are very knowledgeable.

The supplier side of things can be difficult, although thanks to utilising Ali Baba Trade Assurance this has become far less of a problem. Managing delivery times is the most challenging aspect of the business and one I feel could be improved upon with some creativity.

It should also be noted our current supplier does excellent work. While they have only been with us since July 1 we have received no customer complaints and I have purchased several sample guitars from them and found them to be of a very high quality in comparison to previous suppliers.

I believe someone with more of a business background (My skill set is SEO and online Marketing) could solve the supplier/late delivery issue by meeting the supplier face to face and strengthening the relationship and/or exploring options such as pre-manufacturing elements of the guitars.

Detailed Information

Home Based
This business is Home-Based

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Nathan Vannoy

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Nathan Vannoy


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