This business is quickly establishing its brand and presence in this budding niche. EFS specializes in food and water storage products and gear - It's generated $220k Gross Rev in 8 months!
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Multiple Growth opportunities
Expand Product Lines
Build Social Media Presence
Let me know if you think this business is a good fit for what you're looking for, and whether you'd like to arrange a conference call with myself and/or the owner to discuss this opportunity in more detail. If you have any other questions please don't hesitate to ask.
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We started EFS in June 2016. We identified an opportunity in the marketplace where folks could come and compare products, get great customer service and a best-price guarantee. So far, our customers have been very happy and we continue to grow. Our typical customers are families and individuals looking to prepare for the unexpected; job loss, natural disaster and even the end of the world for some of our customers. Regardless of the reason, they are buying emergency food and supplies, we are here to help. We are unique in that we offer more than one line of products. While there are competitors out there with different lines, we feel like our buying experience is top notch and we’ve earned the trust of many of our customers.
One of our growing segments is subscription-based customer revenue, We send them product every month and this is a much more affordable way to start a food storage supply and has helped in forecasting revenue and inventory for us. We've gained a few subscribers just in this last week so each month we have $2000-$2200 in orders per month on subscription right now.
We purchase inventory from one vendor and drop ship from the other. We buy inventory because the margins are much better. We have a warehouse and shipper that is more than willing to work with the new owners. We are selling the business to focus on other ventures but we have done all of the difficult work for you to get going right away. This is a turn-key investment with lots of potential for growth while still turning a profit. You’ll spend 5-15 hours per week on this site depending on how much you do yourself. It is a very straightforward model. Most of your time up front should be spent adding additional drop ship products to the site.
We find our customers through CPC and have done very little SEO for the site. We have never been penalized by google and the site has a very high conversion rate. We spend approximately $1100.00 a month in marketing; CPC, Facebook, affiliate, etc. You’ll likely want to plan on this to maintain current revenue levels. All of our Facebook likes are organic and we’ve never paid for traffic.
Your primary opportunity for growth is to increase the product lines on site. Our customers are always asking us for stoves, water purifiers shelving, etc. we simply haven’t had time to dive in and get it on site. The good news is that vendors want to sell with us because of our established customer base. It is not hard at all to get good pricing for new drop ship items.
1. Please state your full name and company name, if it’s a corporate entity selling the website
[Known to Broker]
2. Please briefly describe the business model
Established since June 2016 EFS sells a variety of preparedness products. Many of the products are dropped shipped, however, we purchase inventory from our biggest supplier and pay a 3PL to warehouse and ship the product for us.
3. When was the business established?
In late June 2016.
4. How has the business evolved since it was first established?
We started a website specializing in one product. This was the channel we focused on initially. As sales grew, our customers asked for a broader product line. To accommodate, we rebranded to the current site. We have grown from not only offering emergency food products but now all emergency related supplies i.e. Fire starters, flashlights, etc. There is a great opportunity for the new owners to expand EFS products, most of which could be drop shipped.
5. Who is your typical customer?
The everyday prepper and families that want to be prepared and protected should something happen. A growing segment is our subscription-based customers. These folks want to start preparing but can’t afford to buy it all at once. They sign up for a subscription account and once a month we send it out.
6. Are you the original owner of the business? If not, when did you purchase it and how has it evolved since?
Yes. We are the original owners.
7. Why is the business being sold?
To focus our efforts on other opportunities.
8. Are you looking to sell the company (stock sale) or just the assets of the business (asset sale)?
Selling the company and its assets. EFS is not its own CORP or LLC. It is a DBA of a parent company. We are not selling the parent company.
1. Please list all domain names that are included in the sale
[Known to broker] revealed after completion of the NDA.
2. Are there any social media accounts included in the sale? If so, please list them along with the URLs to such accounts.
Facebook: 250+ organic likes. We’ve never paid to get “spammy” likes.
3. Are there any mailing lists included in the sale? If so, which service providers are such lists held with and how many subscribers do they have?
Yes, we have a MailChimp list of about 430+ people. Average of 3-5 new subscribers per day. We will also transfer ownership of our Share-a-Sale affiliate program account.
4. Does the sale include existing customer data? If so, in which format is this provided and how extensive is the customer database?
Yes, the sale includes our Shopify store which houses all of the information for over 1,200 customers.
5. Are there any rights, trademarks, intellectual property included in the sale?
No trademarks, etc. but all vector files for logos, banners, marketing material, etc. will be provided.
1. Does the business carry any inventory? If so, approximately how much inventory does the business keep at any given time and is any current inventory included in the price?
We typically keep approximately $5,000 of inventory on hand. New owners can drop ship but the margins are not as good for one of our suppliers. The other food supplier offers good margins on a drop ship basis.
2. Where is the business’s inventory kept? If in a third party warehouse or storage unit, can the rental agreement/lease of such warehouse or storage unit be transferred over to the buyer?
We keep our inventory at a 3PL warehouse. We have known this particular 3PL for years and thus do not have a formal agreement. However, we have spoken to them regarding the potential sale of the business and they are more than willing to accommodate the new owners.
3. Is it necessary for the business to keep its inventory in a particular country or a state, in order to retain the current profitability?
Nope. You can store it wherever you’d like.
4. How are shipments into and out of the warehouse/storage units managed?
We rely on our 3PL to handle inbound shipments for our primary product line as well as daily outbound shipments. Many of the products, however, are dropshipped and no shipment is required.
1. How many suppliers does the business use and for how long has the business used these suppliers?
We have two primary suppliers for our food product offering. Other suppliers would like to sell their product on our site but we have been pretty picky as to who we work with. Some products are excellent like solar stoves, backpacks, tents and other gear but since we made the decision to sell we have not moved forward with any dropship agreements to give the new owner the decision-making opportunities. Folks WANT to sell with us. We have a built-in audience. The biggest opportunity for growth is to build out the product line with more options, more suppliers and more content for SEO purposes.
2. Does the business benefit from any volume pricing arrangements with any of its suppliers?
Yes. It makes a lot of sense to buy minimums from our main supplier to get a 20-25% discount.
3. Explain your payment terms with your supplier(s)?
We typically pay vendors once a month by the 15th of the following month. So 30 days terms.
4. Do you have written agreements with said suppliers in place, and are such agreements transferable to the new owner?
Frankly, we do not have written agreements with vendors. If an agreement is desirable, we’d be happy to help coordinate this. It just hasn’t been on our radar. We have talked to both major vendors and can secure agreements for the new owners.
5. How often and through which channel do you pay your suppliers for purchased goods?
We send company checks to each vendor once a month.
6. What is the average lead time from the day order is placed until the customer receives the good?
7. Have you changed suppliers in the past, if so, why?
No, we’ve been very pleased with our vendors.
OPERATIONS & MAINTENANCE
1. Please provide a breakdown of ownership and the organizational structure of the business.
50% Owner: [Known to Broker] Effort: 1-3 Hours per day – Site maintenance. Customer Service. CPC Marketing, affiliate campaigns, blog posts and social media. 50% take of Net Profit.
50% Owner: [Known to Broker] (50%) 1-2 Hours per day – operations, accounting, inventory, supplier relations. AP/ AR, reporting. 50% take of Net Profit.
2. Please provide a breakdown of the operations of your business
A. Site, Sales, and Marketing: 5-10 hours per week
B. Backend, Accounting, Inventory: 5 Hours per week
Most tasks could be outsourced if needed.
3. Does the owner of the site need any specific skill sets to successfully maintain and manage the site?
No, the product is very easy to understand and learn. Questions are normally basic and customers are anxious to buy hence our high conversion rates over the months. SEO, CPC and affiliate marketing experience would be helpful.
4. How do you handle customer support and what is the average volume?
Yes, 2-3 calls and emails per day.
5. Do you employ any people or use any freelancers and if so, are such contracts accounted for on the Profit & Loss Statement and transferable to the new owner?
We have used freelance writers to help with our blog. Their pay is included in expenses on profit/loss. Will send contact info if new owner desires.
TRAFFIC & MARKETING
1. What are the primary traffic sources of the site?
2. Have you done any Search Engine Optimization? If so, what level of SEO effort is required for the site to maintain its current traffic levels?
3. To your knowledge, has the site ever received any search engine penalties (manual or algorithmic)?
4. What level of SEO effort is required for the site to maintain its current traffic levels?
Minimal. Most traffic is CPC
5. Do you or have you ever purchased traffic? If so, please provide a brief overview
Yes. Adwords, Bing, and PLA’s.
6. Do you run any other marketing campaigns, such as display advertising, social media marketing, offline advertising or anything else?
We’ve run the occasional Facebook ad.
7. How does the site rank for related keywords?
The site is still young so not ranking for many keywords.
1. Which payment processor(s) does the website utilize?
Shopify, Stripe, & PayPal.
2. Please confirm that all revenue sources are transferable to the new owner
Yes, all revenue sources are transferable.
3. Are you able to provide live revenue verification?
All sales numbers are in our Shopify account that you can access.
4. Is the website’s revenue kept separate from other businesses and/or personal accounts?
For the most part. We recently transferred to a new PayPal account for PayPal orders to keep it separate. Prior to January 2017, the PayPal orders were joint with orders from other eCommerce operations.
5. Can the website’s revenue be accurately tracked back to the website, i.e. do payment descriptions/details include the website’s name or reference to the website’s products?
Yes. Shopify provides payout reports which can be tracked to each individual order.
6. Please provide a brief overview of your average profit margins and how have they evolved over the last 12 months?
Average Net Profit Margins since June are 26.14%. Although Net margin has decreased in December / January we attribute this to the holidays and the new year. Folks are spending their money elsewhere and are less focused on emergency food. Anticipating this, we decreased our marketing budget over the same period. As new owners increase products on site, increase the marketing budget and reach out to affiliate groups the potential for margin is good.
7. What is the site’s average Refund/Return rate over the last 12 months? What is the primary reason for the returns?
No returns. And very few refunds.
8. What are the main expenses of the business? Please list any recurring expenses that account for more than 1% of overall revenue, see P&L for details of each.
9. If necessary, do you have tax returns available to support your revenue claims?
We do not have a tax return to support revenue claims. We will be as transparent as possible during this process but unfortunately, cannot provide a tax return as the business is less than a year old.
1. What platform does the website use? (e.g. WordPress, OpenCart, OSCommerce, etc.)
2. Has the website changed platforms in the last 2 years?
3. Where is the site hosted and does this need to change after purchase?
No. It is hosted with Shopify.
1. Please describe your main competitors
Food for Liberty, PowerPrepper, other smaller competition.
2. What makes the website better than its competition?
We sell different product lines that give the customers the ability to compare-and-contrast different product lines from various suppliers. There are very few “one-stop-shops” like us out there. And sure we are biased, but the site is welcoming and provides free shipping on every order. We price match and provide some of the best customer services in the business. Our customers can call, email, or chat with us 24/7. Keep in mind, very few if any of our customers are calling us at 2:00 AM but they sure like to know we are there for them. Our customers care a lot about who they are buying from and we have worked hard to build a solid and friendly customer service reputation.
1. Do you own any other internet-based businesses? If so, are any of them related to the website being sold?
Yes. None are related to this venture.
2. Are you willing to sign a 3-year non-compete contract in the industry that the website operates in?
One of our goals down the road is to create our own food storage brand. It will not compete with anything this website is doing. In fact, should we end up starting that line we would love for EFS to sell our product? The non-compete would need to not restrict us from that. We’d be happy to talk with the buyer about this, but at the end of the day could be a great opportunity for them to add product.
3. Will you provide 1-3 months of post-sale support & training, in order to ensure that the buyer is able to fully take over the business and its operations?
4. What are the primary growth opportunities that you see for the business going forward?
5. Are there any geographical limitations to the potential buyer of the business (i.e. do they need to be based in a particular country, region or time zone to handle customer inquiries or to take over the financial and other accounts)?
No, but the United States has been our main customer base.
1. Checking the domain’s history shows a previous business in the same niche run by Ron Arciaga, does your business have any relationship with him?
Nope. I’ve never heard of him.
2. After launching your business in June, what was done that saw revenue jump by almost 5x the following month?
Nothing special. I don’t believe we were live all of June so we were still getting everything up and running. Optimizing our AdWords campaigns etc.
We’ve only officially been in business less than 1 year, but talking to other industry professionals as well as our vendors we believe that summer and early fall is typically a hot buying season for Food Storage.
Also, the election was heating up with Trump v Clinton – and all of that political unrest lead to many customers stocking up and wanting to buy their food storage supply.
3. What attributes to sales dipping in Nov and Dec despite Marketing/Advertising spending staying consistent?
Other than it being year-end and not the “Hot” season to buy food storage we are not sure.
4. How many customers are currently subscription-based with recurring payments set up? Would transferring payment processor accounts interrupt any of these payments?
6 right now totaling $2100 in sales each month. No, we just use a Shopify app for this so you would just need to update banking info. (You need a Stripe account for this specific app to work)
5. Could you grant access to your Shopify account so I’m able to verify monthly revenue numbers?
*Access has been granted to the Broker and revenue verified. Live revenue verification is available upon request to serious buyers.
6. Could you provide me with screenshots of the past three month’s payments received? This can be of your PayPal/Stripe account showing payments being made for EFS.
Please see the attachment section at the bottom of the listing
7. Why was GA only installed from Oct, and were you using anything to track traffic before then? If so, could you provide screenshots of traffic numbers for June - Oct?
Oversight on my part. When we originally started, we were using a different domain. We then moved domains tothe current website and added more products. We were so busy with the transition that I didn’t get analytics properly tracking.
Most of our traffic comes from AdWords or through our affiliate network should we run a deal. But the traffic we get converts at a very high rate and the margins on the product are excellent. So the opportunity is there for someone to build a greater audience and take EFS to the next level.
8. What type of affiliate advertising do you do that’s generating traffic?
The one that did well was a Jacket we sold through www.slickdeals.net and other deal sites. You’ll see the giant spike in traffic with the spill over still happening.
9. What do “Merchant Fees” on your P&L account for?
Merchant fees are the fees we are charged per transaction for credit card processing. We process CC payments direct through Shopify and they charge us a fee.
10. What is the revenue generated from Shipping and Delivery?
At one point, we were charging the customer shipping for any order smaller than $50.00. This is the revenue generated from that. We have since moved to a totally free shipping model.
11. Are the costs for both inbound and outbound shipping included together under “Shipping Expense”? If so, could you separate the two costs to so we’re able to see how much monthly outbound costs are? Do you ship internationally?
Outbound only. Right now, we do not have any material inbound freight as it is included in the cost of fulfillment when an order goes out the door. Our shipping partner receives inventory and we pay for shipping when it leaves the warehouse. NuManna’s manufacturer is in the Salt Lake area as well as our fulfillment partner so it makes this arrangement possible.
|Site Established ?||June 2016|
|Built With ?||—|
|Google Analytics Detected ?||Yes|
|Domain Registered ?||26 September 2016|
|Content Unique ?||No|
|Design Unique ?||No|
|Pages In Google ?||321|
|MajesticSEO Inbound Links ?|
|SEOmoz mozRank ?|
|Alexa Rank ?||1,183,887|