Featured Listing: Profitable Shopify Store – Women Apparel

About the business

Tell us a little about yourself. What’s your background? How did you start the business?

Saw an opportunity in that industry and started building the business very slowly. Started with very low volumes and then each week we would manage to achieve new highs. We have really put a huge effort into making the business what it currently is.

As an eCommerce business, where are your products made?

Products are made in China. We are using an agent that can talk with all the suppliers, negotiate with them, do quality control and many more. Our relationship is pretty good and she has been very helpful in our journey.

What can you tell us about your Customer Lifetime Value (CLV) and Customer Acquisition Cost (CAC)

The customer lifetime value could be very better. We haven’t been retargeting buyers with new offers since we were focusing on bringing in more volume. Customer acquisition costs on Facebook ads can usually range from $15-$25 (that’s the acceptable CPA). Anything more than that and we scrap it and test new audiences and creatives. Anything under $20 is highly profitable.

How have you marketed the product and where are your customers originating from?

Most of the customers we have attracted are located in the US. To market the product we tried a couple of platforms but found the biggest success with Facebook. Google wasn’t successful but to be honest, we should at least have a google retargeting campaign. Youtube ads not really the platform to sell these. We would really love to advertise on TikTok but unfortunately due to the location that the company is registered in, we are not allowed. TikTok could scale this business to the next level.

Is the asset on your listing owner-operated, how much time does it take to run the business, who else is needed on the team, and what is automated?

It can be run by one person easily but really depends on your priorities. You could have a VA to take care of customer support, comments etc, but that’s all about it. Should take you an hour to fulfil orders + optimize your ads daily.

What does someone need to do to continue operating the business in its current form?

The business is ready to go. You can easily start any Facebook or TikTok campaign and you’ll see results immediately.

Growing the business

Can you list a few opportunities for a potential new owner to continue growing the business?

Market summer products to get rid of seasonability. Get also into the lingerie market and in general mainly focus on home wear for women to make them feel cozy and sexy.

What has been the evolution of this asset since its launch?

Started in November 2020 and until April was making profits. Started building another business in the summer since we found another opportunity so we didn’t deal with seasonability. The winter comes up again, we run ads for the same products and profit immediately.

How does this business make money? What are the current revenue streams?

Bulk emails get good revenue, as well as SMS marketing. Some people organically find us through google, Instagram or from friends. The most revenue is definitely through Facebook.

What marketing channels are most profitable for the business?

Facebook at the moment but we believe TikTok would be the best.

How does the business currently acquire customers and what is your breakdown for marketing costs?

Facebook. Most of our CPA is around 20.

How big is your current team? How many people does it take to run this business?

Takes only 1 but to make your life easier it would be nice to have a VA.

What’s the reason for selling your business on Flippa?

We saw a huge local opportunity and we would love to invest into it.