eCommerce Business Earning $1.2 Million Annually

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

Deal Flow, The #1 Websites Brokerage

Asking Price:$1,800,000

Cash Flow:$530,176

Gross Revenue:$1,174,755





eCommerce Business Earning $1.2 Million Annually

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Business Description

Established Site Selling Popular Athletic Gear and Accessories

Seller Interview:

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
[Known to Broker] is a motivational reminder company that acquires their customers through unique content over social media and word of mouth.

3. When was the business established?
February 2014
4. How has the business evolved since it was first established?
[Known to Broker] started with one bracelet SKU and has grow to be a worldwide motivational fitness brand with over 30 SKU’s.

5. Who is your typical customer?
The typical customer is the fitness market between 18-34 years of age.

6. Are you the original owner of the business? If not, when did you purchase it and how has it evolved since?
Yes, the original owners are selling.

7. Why is the business being sold?
The major reason is partner conflicts.

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

1. Please list all domain names that are included in the sale
[Known to Broker]

2. Are there any social media accounts included in the sale?
Instagram (159,000 followers)
Facebook (45,000 Likes)

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?
Email database with over 35,000 emails ran through campaign monitor.

4. Does the sale include existing customer data? If so, in which format is this provided and how extensive is the customer database?
Yes, website, CSV, or any format needed.

5. Are there any rights, trademarks, intellectual property included in the sale?
There is a pending trademark for the words “[Known to Broker]” on jewelry.

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?
Yes, we carry approximately 10,000 units at any given time. The inventory is included in 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?
The inventory is left at our main office in Frisco, Texas and the lease can be switched over or terminated.

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 it can be in any state.

4. How are shipments into and out of the warehouse / storage units managed?
We use ShipStation as a shipping platform.

1. How many suppliers does the business use and for how long has the business used these suppliers?
We have a total of 5 manufacturers and they have been used since the beginning. One for each category of products.

2. Does the business benefit from any volume pricing arrangements with any of its suppliers?
From our long relation ship we have the best prices for any quantity under 40,000 units at which time it’ll go down.

3. Explain your payment terms with your supplier(s)?
We have net 30 terms with all but one which we pay 50% at start and 50% upon completion.

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

5. How often and through which channel do you pay your suppliers for purchased goods?
We order monthly and pay through bank wires.

6. What is the average lead time from the day order is placed until customer receives the good.
The average lead time is 4 weeks on stainless steel, 5 days on silicon products.

7. Have you changed suppliers in the past, if so, why?
No, we have not.

1. Please provide a breakdown of ownership and the organizational structure of the business.
1) Co-owner 1 (33.333%), CEO, $200k annual salary + 33.3% take of net profit.
2) Co-owner 2 (33.333%), CSO (generate new business ideas and strategy), $140k annual salary + 33.3% take of net profit.
3) Co-owner 3 (33.333%), CBO (Post across social media outlets and withhold the brand image), $100k annual salary + 33.3% take of net profit.

2. Please provide a breakdown of the operations of your business
1) Marketing - Social media marketing campaigns - 40 hours a week.
2) Managing Operations – overseeing the entire business – 40 hours a week.
- payroll;
- providing leadership and training;
3) Customer Support – answering tickets, emails – 12-20 hours a week.
4) Logistics – Shipping– 40 hours a week.
5) Graphic Design – graphics– 40 hours a week.
3) Photographer – photos 40 hours a week.

3. Does the owner of the site need any specific skillsets in order to successfully maintain and manage the site?
It is run on Wordpress and Backspace servers, anyone with a little web experience will be able to run it.

4. How do you handle customer support and what is the average volume?
We use and get about 15-20 tickets 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?
We employ people that are on the Profit&Loss that will be transferred to the new owner if they wanted such workers.

1. What are the primary traffic sources of the site?
Social Media Marketing, Facebook Paid Ads, Instagram Paid Ads, Google Adwords, Amazon.

2. Have you done any Search Engine Optimization? If so, what level of SEO effort is required for the site to maintain its current traffic levels?
Yes, we’re ranked first in relevant fields.

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

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

5. Do you or have you ever purchased traffic? If so, please provide a brief overview
No fake traffic, just paid ads stated above.

6. Do you run any other marketing campaigns, such as display advertising, social media marketing, offline advertising or anything else?
All stated, expos as well as influencer marketing, Amazon.

7. How does the site rank for related keywords?
First in most relevant keywords.

1. Which payment processor(s) does the website utilise?
We use BrainTree by PayPal 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?
Yes, our company bank account.

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 be tracked back through the websites.

6. What is the site’s average Refund/Return rate over the last 12 months? What is the primary reason for the returns?
0.5-1% on average.

7. What are the main expenses of the business (please list any recurring expenses that account for more than 1% of overall revenue)
1) Payroll
2) Rent
3) Advertising

8. If necessary, do you have tax returns available to support your revenue claims?
Yes, 2015.

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

2. Has the website changed platforms in the last 2 years?
We switched over from Shopify in Jan 1st of 2016.

3. Where is the site hosted and does this need to change after purchase?
It is hosted at RackSpace, it can change but I would recommend keeping it there.

1. Please describe your main competitors
Our main competitor is a company called Shields of Strength.

2. What makes the website better than its competition?
They have a more limited market due to their bible verses on their products.

1. Do you own any other internet-based businesses? If so, are any of them related to the website being sold?
Not currently.

2. Are you willing to sign a 3-year non-compete contract in the industry that the website operates in?
Yes, we are in clothing and fitness jewelry.

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, we will aid in transitioning and showing how we operate/market.

4. What are the primary growth opportunities that you see for the business going forward?
The company will expand more into clothing and has way more potential for unique jewelry options we can share with the buyer (kettle bell, etc).

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)?
No, we ship worldwide but avoid shipments to Africa.

Detailed Information

Home Based
This business is Home-Based

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Nick Brown

Business Listed By:
Nick Brown Pty Ltd

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Deal Flow

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