Featured is an outstanding eCommerce opportunity in the large and growing disposable vape pen industry. Operating in the US, but currently managed from Australia, this business is ready to go and can clearly be managed from anywhere in the world. And did we mention they have built the business with zero ad spend?
Watch the video below to learn a bit more about the business.
Tell us a little about yourself. What’s your background? How did you start with this concept?
I hope that getting to know me a little bit will help you understand why I’m selling this business. I’m Malaysian and graduated from University in London in 2018. My passion to become an entrepreneur led me to learn how to run a drop-shipping business. That’s how I came to start this brand.
Being self employed from the beginning makes it very hard to get access to credit from any bank in my country, let alone to have a credit card. I need to have a 3 years of established net income in order to find outside investment, so I’m not available for any investment capital to grow this brand at the moment, which is what has led me to put it up for sale on Flippa.
I hate to see this brand remaining stagnant for so long as I believe in its potential to expand, especially as art supply is a very unsaturated niche. Not able to expand the next new product line now is just crushing my heart.
What caused the spike in April and then a decline leading into 2021?
At that time, the Facebook advertisement that I was running was fully optimized and exposed to millions of audience members, receiving thousands of engaging comments. However, due to the Covid-19 outbreak getting worse at that time, the sales started to drop due to logistic disturbance, so I have to slowly scale down the ads.
Starting in July, I decided to reinvest the money on white labeling the product and start holding the inventory to increase the shipping time. I had to do this to prevent a past mistake – not having enough stock while scaling my ads.
Since the business had the inventory, I wasn’t looking at COGS as much, since that was a sunk cost. The bulk expenses on inventory caused the loss in those selected months.
How much time does it take to run the business, who else is needed on the team, and what is automated?
Basically 6-8 hours a week to check on customer service, payment for expenses and to keep up to date with advertisement analytics. For big single projects like hiring contractors, finding and dealing with influencers, and advertisement set up, these might take a cumulative 48 hours work.
Can you list a few opportunities for a potential new owner to continue growing the business?
I’m very excited to answer this question because if the investment capital was available to me, I know that I would nail it.
So, my plan would be to add two new products which have proven to be winners. These products are desirable because of their ability to become eco-friendly, attracting return customers for the replacement.
There is no other company offering replacements for this kit yet.
The next plan would be focusing on Q4. This brand targets mostly women who love adorable products. Creating limited edition packaging based on seasons like Christmas is the best way to go, and customers are going to naturally spend for their Christmas presents.
For next summer, I would create a complete art travel kit which would be able to create a movement encouraging the customer to be creative on the go.
Adding basic complementary art supplies will help upsell and increase the average order value.
Lastly, hiring a team that has great skills in art will help the social media platform keep active and educational. This will help increase the customer trust and will definitely convert more sales.