5 y/o Drop Ship eCommerce Business

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

Flippa, The #1 Websites Marketplace

Asking Price:$17,000

Cash Flow:N/A

Gross Revenue:N/A





5 y/o Drop Ship eCommerce Business

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Business Description

Seller's Notes
*The Sellers financial statements have been converted from AUD to USD at a rate of .75358. This rate was taken from Oanda.com on 9/12/2016. Please see the attachment below.

This is an opportunity to reinvigorate a site with a good conversion and sales history, including approx. 14,000 customers in a very well defined tech/gadget niche.

Suitable for someone wanting to get a flying start in eCommerce, or as a bolt on for other eCommerce sites with similar or complimentary products.

The trailing twelve months efforts have been focused on other businesses with minimal product renewal and gradual reduction in marketing spend (to 0 spend over the last 4 - 5 months).

In June 2016, a decision was made to sell the site and associated assets but first convert from the ageing OpenCart platform to Shopify, which is a far superior platform, easy to learn, easy to manage and with lots of opportunities for expansion and growth.

Historically the site has focused on the Australian and New Zealand markets, and thestyluscompany.com.au and other associated domains are also included in this sale (see below).

TheStylusCompany enjoys a good reputation as a reseller of quality, branded stylus pens and associated products from well-known brands such as:

Pencil 53
Truglide (Lynktec)
Apex (Lynktec)
Ten1Design - Pogo
Products are sourced either direct from the manufacturer (Lynktec, Ten1Design, Gecko) of from the authorised distributor.s A complete list of suppliers and contacts will be provided to the successful purchaser. Most of the distributors will dropship. The majority of the brands mentioned are also available direct or through reputable resellers in the US and Canada for North American buyers.

This is a complete, turn-key eCommerce site, literally ready to start generating revenue from day 1 of taking control, and with numerous opportunities for immediate growth, including:

Other social media
Email to a 14,000 "clean" customer list
Ebay TheStylusShop
Content creation via affiliate sites (check the list of included URLs)
AdSense revenue
The list of inclusions in this sale is extensive:

Shopify store running as thestyluscompany.com
thestyluscompany.com.au (redirecting to .com)
Facebook page - established and integrated (https://www.facebook.com/thestyluscompany/)
Instagram account
Pinterest account
Twitter account
Payment Gateway - ready to go - Shopify Pay + PayPal (just add your account details)
Google analytics integration and account
Google Web Console
Google Merchant Feed
Mailchimp account and integration
AdRoll - remarketing tool
All products with images (100+)
Product categorisations ("collections")
Extensive supplier list with contact details
Clean and updated email database of approx. 14,000 emails (on CSV file)
4 years transaction history
Customer database (on Shopify)
All pages required to operate the store - ready to edit with your own details
Additional parked domains included:

Some stock can be made available at cost to the successful bidder.

This is an opportunity to acquire an established eCommerce site, on a top quality hosted platform, including every aspect required to start selling immediately upon taking possession!

The seller, who has operated this business for 4 years, offers 14 days support after handover including all aspects of operating the 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

The sale of quality stylus pens for iPads, iPhones, tablets and smartphones through thestyluscompany.com (and .com.au)

3. When was the business established?

May 2011

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

The original owner ran the business for about 15 months, organically building the revenue to approx. AUD 10,000 ($7,565 USD) per month with little or no marketing spend. I acquired the business in September 2012 and continued to grow it to a peak revenue of approx. AUD 45,000 ($34,044 USD) per month.

5. Who is your typical customer?

Small business and professionals using stylus pens for work related tasks such as filling out forms and note taking.
Students and academics using stylus pens for note taking and writing.
General public, typically an older demographic of 40+, using stylus pens for navigating their phone or tablet
6. Are you the original owner of the business? If not, when did you purchase it and how has it evolved since?

Ref. 4, above.

7. Why is the business being sold?

I am no longer interested in operating a business that requires daily operational involvement, even if minimal.

8. Are you looking to sell the company (stock sale) or just the assets of the business (asset sale).

Primarily the assets of the business, although some stock will be made available for purchase at landed cost by the purchaser subsequent to the sale.


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

Primary domains – both currently pointing to the .com:

Related domains that can be used for creating related content and link building:

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

Facebook page - https://www.facebook.com/thestyluscompany/
Instagram - https://www.instagram.com/thestyluscompany/
Pinterest - https://au.pinterest.com/styluscompany/
Twitter - https://twitter.com/TStylusCompany
Youtube channel
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?

Mailchimp, approx. 14,000 email addresses – available as CSV file.

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

Existing customer names are uploaded to Shopify with email addresses. Historical sales data is available in spreadsheet format (Excel).

5. Are there any rights, trademarks, intellectual property included in the sale?



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?

The business did carry inventory, at one stage up to AUD $20,000 ($15,129 USD) worth, but this has been reduced and will be offered separately to the buyer subsequent to the sale.

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?


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, the majority of the products sold can also be drop-shipped.

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

Buyer will need to establish their own process.


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

Products are sourced either from Australian distributors, some products are imported from US based OEM. Approx. a dozen suppliers in total.

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

Yes, from OEM suppliers.

3. Explain your payment terms with your supplier(s)?

Varies – smaller suppliers generally COD, others from 30 to 45 days.

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

All supplier arrangements are transferable, but the purchases will have to enter into their own payment arrangements.

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

Suppliers are paid COD or in due date via Direct Debit or PayPal.

6. What is the average lead time from the day order is placed until the customer receives the good.

Typically 3 – 5 days unless the express option is selected in which case it is 1 – 2 days.

7. Have you changed suppliers in the past, if so, why?

Operating this type of business includes regularly surveying the marketplace for new products and suppliers. Generally, the only time we have changed supplier is when the OEM/brand has changed their distribution arrangements.


1. Please provide a breakdown of ownership and the organizational structure of the business.

[Known to Broker] is a company incorporated in Australia and 100% owned by me. The company is not being sold, only the assets and goodwill associated with TheStylusCompany business.

2. Please provide a breakdown of the operations of your business

Sales and Marketing: 2-4 hours per week
Order processing : 5-8 hours per week
Customer support: max 0.5 hour per day (2.5 hours per week)
Purchasing and supplier liaison: 2-4 hours per week
Accounts and admin: 2 hours per week
Content Management: 3-6 hours per month
On average, the business can be operated with approx. 16 hours per week.

3. Does the owner of the site need any specific skillsets in order to successfully maintain and manage the site?

The site was recently transferred from an older platform to Shopify which is very well constructed and intuitive to use eCommerce platform. It is also very well documented and offers great support resources.

The most important skills required to successfully operate this business is an understanding of retail business and general sales and marketing skills.

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

The majority of support is around order queries, returns, and general product queries. There is minimal technical support required and for more advanced queries the OEM typically have online help available.

On average, there are 3-5 calls and emails per day.

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?

Occasionally, and yes they are accounted for.


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

Organic website traffic
Email campaigns
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?

Shopify is very well structured for SEO and all contents have been set up based on best practice for eCommerce. Following the same guidelines when adding and editing products and product categories will ensure continued SEO performance.

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

No. And we have never engaged in any link building or other risky or dubious SEO tactics.

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

Manage the content well as outlined above.

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

AdWords, Facebook Ads.

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

Currently dormant, but have used AdWords extensively as well as sporadic Facebook ads.

7. How does the site rank for related keywords?

707 Keywords total, 27 in top 10 position 100+ in top 20

Here is a list and position of the first 10:

smartphone pen - pos (1)

stylus for smartphone - pos (2)

stylus shop - pos (2)

stylus pen tips - pos (4)

jot mini replacement disc - pos (4)

touch screen stylus fine tip - pos (4)

gecko gear - pos (4)

fine stylus for android - pos (5)

stylus bluetooth - pos (6)

pressure sensitive tablet android - pos (6)


Please refer to the Product Calculations attachment for detailed information regarding the percentages used in the various financial reports.

1. Which payment processor(s) does the web site utilise?

Shopify Payment Gateway and PayPal

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


3. Are you able to provide live revenue verification?


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

All revenue reports are from the eCommerce platform itself and hence independent of revenue accounting.

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?


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

Gross profit varies from 30 – 40% in general.

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

Approx. 2% - mostly faulty products replaced by the OEM, some incorrect purchase or change-of-mind.

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

Refer to Profit & Loss Attachments

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

No, as Tax Return also includes other business activities.


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


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

Yes, previously used OpenCart

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

Shopify is a fully hosted system and the account itself is transferable.


1. Please describe your main competitors

Stylusshop.com – generally sells non-branded cheap imitations
General electronics and gadget retailers
2. What makes the website better than its competition?

The site is focused on a very well defined niche and sells only quality products from all the recognised brands within that niche.

3. What was the relationship between Thegadgetcompany.com.au and TheStylusCompany.com?

I started TheGadgetCompany.com.au as a separate entity with a much broader range of gadgets and accessories rather than diluting the product range for the TheStylusCompany. The two sites co-existed over a period of 9 months or so, selling different products with minimal overlap.

4. When did you sell Thegadgetcompany.com.au?

The sale was completed in early July 2016.

5. What assets were included in the sale?

The online assets including some social media accounts' directly related to the URL. The stock was sold afterwards but did not include stylus products.

6. Were any assets shared?

No, only the operations were shared.

7. Does the new owner of Thegadgetcompany.com.au have access to TheStylusCompany.com's customer database?

Yes, to approx. 4,000 of the 14,000 total.


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

I own several URL’s that we plan to set up as “turn-key” eCommerce stores to sell, but none will include any of the assets of TheStylusCompany.

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


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 1 month is more than sufficient I believe.

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

First and foremost in the active and effective use of social media, secondly keeping up to speed with new and improved products from the existing vendors and any new entrants into this market. With Apple now offering a stylus with some of their products I believe this will further “legitimize” the stylus as a “must have” accessory.

Secondly, implementing a marketing strategy that directly focuses on the target market segments as mentioned above, including blog posting and advertising/advertorials on online (and possibly offline) media that targets those segments.

Thirdly, smart use of the customer database for remarketing through Google, Facebook and others.

I also believe there is untapped opportunity in focusing on the education market with some of the high-end products.

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)?

Not really, except for supplier arrangements, but all the products sold are generally available world-wide through reputable tech distributors.

Our original intention was to set up drop-shipping for the US market, and we did at some stage actually also ship to the US and approx. 1500 of the customer list are US domiciled.

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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