An established gym fashion brand has generated over $130,000 in sales from 2020 to 2021, sustaining a profit margin of over 45% and averaging an $8,000 monthly profit over the last three months. Operating a dropshipping model, the brand partners with a supplier in China, ensuring the fulfillment of orders and custom packaging. The business maintains an average order value of around $60 with a cost of goods sold of approximately $21 and ships worldwide within 7-14 days, extending to 7-25 days for smaller countries. The brand employs a customer service manager and influencer managers, with the customer service lead earning $180 monthly. Influencers play a crucial role in customer acquisition, receiving commissions and donating a percentage to environmental charities.
The brand has confronted common challenges associated with Chinese suppliers, such as quality and delivery times, and has implemented strategies to address these issues. Their solutions include a rigorous quality control process, custom sizing guides to reduce returns, and a flexible return policy that encourages customer satisfaction.
The business presently relies solely on influencer marketing and sees potential growth through other channels like email marketing and paid ads on social media platforms. Despite its profitability, the owners are selling the business to fund a new venture. They provide assurances of a smooth transition for potential buyers, citing that the business is automated and suggesting numerous strategies for future growth. Buyers with a growth mindset are encouraged to explore expanding the business beyond its current influencer-driven model.
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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