The business in question operates a beauty and hair e-commerce store on the Shopify platform, with its primary revenue generated from direct website sales. Starting in 2020 as a dropshipping venture, the business has since transitioned to using a third-party logistics provider (3PL) in the UK to offer next-day delivery. Traffic is driven to the website through paid social media advertising and pay-per-click (PPC) campaigns, in addition to leveraging Instagram influencers for promotions. The main operational activities include ordering inventory from suppliers and managing advertising campaigns on platforms such as Facebook Ads, Google Ads, and Snapchat Ads, requiring 5 to 10 hours of work per week.
The target demographic consists predominantly of women aged between 20 and 50, primarily residing in the UK. Customer acquisition strategies include social media marketing, influencer collaborations, and email campaigns. Financially, the business experiences seasonal fluctuations, with the fourth quarter being the peak due to the gifting nature of the products, whereas summer sales are slower. A lack of cash flow in Q4 2021 impeded sales compared to Q4 2020; however, increased inventory investment could substantially boost future fourth-quarter revenues.
Additional assets included in the sale comprise trademarks, copyrights, digital media, and other intellectual property related to the business. The P&L accounts for a VAT of 20% on revenue in the UK. Operational efficiency is facilitated by minimal owner administration, requiring only two hours daily, with existing virtual assistants remaining during the ownership transition. Current owners are also open to providing extensive transitional and consultancy support to the new buyer.
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