This document outlines the key aspects of a one-year-old e-commerce business operating two profitable Shopify websites. The business employs a "Free + Shipping" model, where customers only pay for shipping, resulting in over $470,000 in sales with a net margin of approximately 14%. It maintains a substantial database of more than 120,000 customer contacts and is supported by two experienced virtual assistants who manage customer service and marketing. The shipping operations are automated and managed by a fulfillment partner in China.
The business has an untapped potential for expansion, having only primarily targeted English-speaking countries such as the U.S, Canada, UK, and Australia. Current marketing is conducted through Facebook and Instagram, with opportunities for further growth through new markets, marketing platforms, and product categories.
While operating efficiently, the business faces challenges due to payment-processing limitations in Israel, requiring U.S or EU-based processors. The transition to an Israeli processor resulted in a decline in income due to poorer user experience. Despite this, efforts to improve efficiency have kept the business profitable.
The potential for growth is significant, especially for U.S or EU buyers who can better manage payment processing. Expanded markets and product lines, or even maintaining current operations, could provide steady returns with minimal weekly involvement. The current owners are selling due to the constraints faced in payment processing, yet they recognize the tremendous opportunities for expansion under new ownership.
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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