About the business
Tell us a little about yourself. What’s your background? How did you start the business?
Sure, I grew up in the North of England, where I later went on to study, becoming a business graduate. Shortly after graduating, the opportunity arose to migrate to the sandy shores of Perth, Australia, where I have resided ever since.
As a serial entrepreneur, I have owned & operated a few eCommerce stores, with two successful exits. One is a well-known snapback store, which launched in 2015, and continues to thrive.
I love the appeal of drop shipping, so this was a natural model for my next venture. After studying various niches, furniture and homewares really stood out for two key reasons. Established suppliers were readily available and the trends in demand were indicating strong growth.
As an eCommerce business, where are your products made?
Fortunately, I have been able to secure eleven Australian-based suppliers with international ties throughout Asia & Europe.
What can you tell us about your Customer Lifetime Value (CLV) and Customer Acquisition Cost (CAC)
CAC = $50
LTV = $250
How have you marketed the product and where are your customers originating from?
Customers are acquired from various marketing activities.
A prominent Melbourne-based advertising agency manages our Google Ads, Facebook, Microsoft Advertising & Criteo.
Capturing email is a key strategy for acquiring new customers and attracting repeat custom. We leverage many automated email flows to drive engagement and conversion.
Our customer base is Australia-wide, with a 62% female demographic along with a higher percentage of engagement with 25-44 year-olds.
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?
Yes, it is owner-operated with some level of delegation.
Ordering is partially automated, there is approximately 1 hour of manual input per day, which is currently managed by a VA.
Inventory is fully integrated with stock synchronisation.
I operate with a team of 2 customer support agents who handle enquiries and follow-ups. Personally, I handle escalations which can take up to 30 minutes per day to review.
Generally speaking, the business operates with under 2 hours of input from myself per day. Although additional time can be invested in business development activities.
What does someone need to do to continue operating the business in its current form?
Ideally, an understanding of how the dropship model operates and some level of exposure to Shopify or a similar platform.
There is certainly no requirement to be an SME in every aspect of eCommerce – a basic understanding across the key business functions with the skills to delegate when required would have you covered.
Since starting the business, I have established a strong support network with suppliers and specialist partners who are invaluable.
Growing the business
Can you list a few opportunities for a potential new owner to continue growing the business?
Absolutely, the groundwork has already begun for an SEO program with the potential for astronomical returns. This will be scoped and detailed during handover, but with the right investment, I fully expect this asset to break the 8-figure barrier.
There is also the opportunity to work with some exciting brands that I am currently in discussion with.
Some of our suppliers offer international dispatch. The potential to move into European or North American markets is there.
What has been the evolution of this asset since its launch?
Since launching in January 2020, we witnessed month on month growth right through until June 2021 when we started to see huge levels in scale. This peaked in September 2021 when we came close to a $1m month.
How does this business make money? What are the current revenue streams?
We strategically decided to move away from Amazon Marketplace and focus on Shopify. All revenue is generated through homeontheswan.com.au
Except for a post-purchase affiliate marketing campaign, a well-known wine retailer. There is also potential to expand with other partners.
What marketing channels are most profitable for the business?
Consistently and at scale Google AdWords, followed by Facebook Ads.
How does the business currently acquire customers and what is your breakdown for marketing costs?
Our partner agency operates with a management fee (15% of the ad spend). KPIs include a target ROAS of 3.5x taken across all channels. Depending on the scale, we have seen the ROAS fluctuate between 3.3 – 4.5x, averaging a return of 3.7x over the course of 2021
How big is your current team? How many people does it take to run this business?
Myself, Jamie Owner & Operator.
Customer Support, Lyn & Lou, who are based in the Philippines.
Admin, Karen, on an Adhoc basis who also is based in the Philippines.
Along with an extended team of partners, who operate with specific tasks, advertising, email, optimisation, web development, SEO.
What’s the reason for selling your business on Flippa?
The first two years of this business have exceeded our wildest expectations. However, due to personal circumstances, the time has come to hand over the reins to an ambitious new owner who can take the store into the 8-figure bracket. With the rate of growth and the right investment, this business is set to achieve this within the next two years.