The online business operates on a well-known e-commerce platform and offers full transparency with access to all financial and traffic data. The company’s web traffic largely stems from Google AdWords, Bing, and organic sources. Relevant operational expenses, including cost of goods sold (COGS), shipping, packaging, and advertising, are accounted for in the monthly expense figures. As of December 2016, the inventory is valued at approximately $4,213 at cost. This inventory is included in the sale, though shipping costs for the inventory will fall on the purchaser. Additionally, a restocking order estimated at $3,000 is advised for January to prepare for peak sales in the spring months.
The business, currently operating out of an overly large 2,500 square foot warehouse, has shown profitability since its inception in 2012. With total revenues peaking in 2013 at close to $200,000, the owner has balanced operations part-time alongside another position. The business employs a hybrid model of drop shipping and warehouse shipping, with potential for conversion into a full drop ship or Fulfilled by Amazon (FBA) model. It is also flexible enough to be relocated geographically.
The sale is motivated by the owner’s desire to refocus personal time toward family, an impending job-related relocation, and the need for a house down payment. Interested buyers are advised to sign up for several accounts (e.g., domain, payment gateways, advertising platforms) to facilitate quick transitions. A seamless changeover process within the e-commerce platform ensures continuity post-sale. Expansion opportunities exist on platforms like eBay and Amazon.
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