A new digital marketplace has emerged on a popular ecommerce platform, which saw sales totaling over $895 million in 2012. This platform features around 850,000 independent shop owners offering unique handmade items. Many sellers have started offering digital products like craft tutorials, patterns, and graphics due to the increasing market potential. A service called "CraftHub" assists these sellers by providing premium digital delivery solutions through an API, enabling automatic file delivery, download management, and customer notifications. CraftHub generates revenue through monthly subscriptions and has seen growing financial results since its launch in August 2012.
Despite facing competition from the platform's new free digital delivery feature, CraftHub is preparing to stay relevant by introducing an unreleased feature aimed at attracting even non-digital sellers. The founders of CraftHub, originally starting this as a side project, are selling the company as it has expanded beyond their capacity to manage, particularly after one cofounder received another career opportunity.
The sale of CraftHub includes the website, software, proprietary code, social media accounts, and a trademark. It also includes customer databases and a help desk site. The ideal buyer should possess programming skills for future updates and marketing knowledge within the crafting community. CraftHub anticipates new integrations with other ecommerce platforms, offering a lower-cost digital delivery service due to its efficient use of cloud storage systems. The sale provides an opportunity for further business growth through these integrations with platforms like BigCommerce and Shopify.
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