The dropshipping business, operating exclusively on a major online retail platform within the home and garden sector, has been running for six years and utilizes Italian suppliers for quick order fulfillment, eliminating the need for internal logistics or inventory management. With a stable turnover over the past two years, it has generated €80,000 in gross revenue and €38,000 in net revenue in the last year, maintaining a strong average order value of €120 across 2,074 orders. The business's logistics are streamlined, with products shipped within two days from established suppliers. Key assets include transferable supplier relationships, email lists, and accounts on both the major retail platform and another online auction site.
The new owner has opportunities to scale the business by implementing automated pricing strategies and optimizing profitability by reducing staffing costs. Current operations require placing orders, updating shipping information, verifying costs, and managing customer care, taking up 21 hours weekly. The customer base consists of shoppers on the retail platform, which accounts for all revenue. The business records a 35% refund rate, largely due to cancellations being processed as refunds.
Financially, the business has consistent margins, with expenses related to a four-person team. Post-acquisition, the new owner has the chance to immediately cut costs as the team will not continue. The business is seasonal, focusing on summer and winter products. The sale includes significant assets such as accounts, an email list, and supplier relationships, which are essential but not trademarked, and can be transferred to the new owner.