This established two-year-old online retail business, operating primarily through a major e-commerce platform, generates an average net profit of $1,070.82 per month. With a profit margin of 52%, the business is priced at a 4.1x multiple of its earnings. The product is sourced from suppliers based in China and Pakistan with additional backup suppliers available. The item is well-reviewed, boasting 34 reviews and a 4.6-star rating, and holds a competitive position within its niche market.
The business model is characterized by low maintenance requirements and consistent year-round performance, unaffected by seasonal demand fluctuations. Revenue growth potential is attributed to ad optimization and sourcing more cost-effective suppliers. The primary advertising strategy employs the platform's ad system, which is already established, requiring the new owner to manage ad selections and budget allocation.
For individuals new to selling on the platform, guidance is offered, including access to an experienced and affordable virtual assistant who has previously supported the current operations. The major tasks involve ad strategy and responding to market pricing. Inventory management is highlighted as crucial, with a reference to a past instance where growth outpaced inventory, resulting in temporary sales dips despite advertisement scale-backs.
The current owner indicates that managing the business requires approximately 1-4 hours weekly, primarily for ad optimization and price adjustments. The business is described as largely automated, with minimal return rates of 1-2 items per month and positive feedback on returns. The reason for selling is to focus on a consulting venture.
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