The owner of an online patio furniture business started the venture in July 2017, tailoring it to e-commerce with a focus on drop shipping across the contiguous United States. The business, launched in April 2019 after 18 months of preparation, began with a five-month testing phase to gather operational insights before a planned full-scale launch in January 2020. During this test, with a $1500 monthly advertising budget, the company generated over $48,000 in sales, resulting in $1000 net profit. A strategic shift lowered gross margins from 19% to 10-13% to capture greater sales volume; however, funding constraints halted advertising efforts by January 2020.
Despite this, since April 2020, the business reported organic sales revenue of $21,000 in May and similar figures halfway through June, solely reliant on search engine visibility. The platform showcases over 500 products and has gained nearly 3000 followers on a social media platform, despite limited capital to sustain advertising.
The business operates efficiently, requiring about 15 to 30 minutes per order to manage customer inquiries, order processing, and communication with manufacturers. The typical customers are homeowners aged 35 to 65, frequently engaging in outdoor space renovations. Although the patio furniture market is seasonal, the business has identified opportunities to diversify into complementary products like fire pits, potentially moderating seasonal sales fluctuations. Business evaluations estimate the company’s value at $12,000 to $15,000, offering scalability potential for those willing to invest effort in marketing and product enhancement.
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 trusted network of industry-leading due diligence partners. They can provide in-depth analysis, identify hidden risks, and independently assess the value of the business. Learn More