The owner of an online business, operational for six years, is seeking to sell due to time constraints related to promotion, especially after starting a family. At its peak in 2005, the business generated a revenue of $57,000, excluding phone and mail orders. The operational process involves minimal time commitment, largely due to the utilization of drop-shippers who handle order delivery, with an order processing time of just two minutes online. The business employs two reliable drop-ship companies, one requiring a nominal annual fee and per order charge, and the other available for free.
Customer service calls are currently minimal due to low traffic, but there is potential for an increase if traffic rises. Email inquiries also remain low. Marketing is primarily done via AdWords, with a conversion rate of 3.3%.
Current business expenses include hosting, phone service, toll-free numbers, AdWords, and merchant account fees, amounting to approximately $70-$90 for AdWords and variable merchant fees based on sales volume. The phone and mail orders count remains low per month. However, revenue could be increased by adding more products from the drop-shippers, such as security cameras. The customer base exceeds 3,500, and their contact information will be transferred to the new owner. Recent monthly revenues are reported for early 2008, with net income figures provided for 2007 and early 2008, illustrating consistent business activity despite limited promotional efforts.
Flippa’s platform is free for buyers. Here are our tips for first-time buyers:
Before making an offer
1. Look for verified sellers. Sellers should verify their email, phone, and government ID. When a seller has completed all verifications, we identify them with a checkmark like this:
2. Review financials. Financials are seller-provided inputs. Always ask for verified financials. Ask for a tax return or request access to their dashboard. if it’s an ecommerce store get a transaction report.
3. Review traffic. Sellers can grant you access to Google Analytics. Ask for read-only access to verify site traffic.
4. Schedule a call. Communication is key. The best way to find out more is to speak directly with the seller. For your protection, keep all communication within Flippa.
5. Make the offer on Flippa. We’re here to help. Flippa does not charge buyers and by making an offer on Flippa you’ll get access to our post-sales support team.
1. Agreements & Contracts.
Connect with a US-based lawyer or purchase asset-specific template legal documents via Flippa Legal.
2. Conduct Due Diligence.
You can conduct this yourself, or use our new official verification and assessment service. We provide a deep analysis, identify hidden risks, and independently assess the value of the business. Packages start at $1,000. Learn More