About the business
Tell us a little about yourself. What’s your background? How did you start the business?
I work in Finance and in 2018 I decided to give Dropshipping a try. After a lot of trial and error things finally took off. From there on I generated about $500k in revenue in 4 years. I’m now transitioning into becoming an Ecommerce consultant and maybe I’ll start a new Dropshipping store sometime in the future for fun.
As an eCommerce business, where are your products made?
What can you tell us about your Customer Lifetime Value (CLV) and Customer Acquisition Cost (CAC)
I can see many customers returning to the store every year, as 12% of revenue is generated from existing clients. CAC has risen across the board from 2021 onward, at the moment CAC is between $15 and $20
How have you marketed the product and where are your customers originating from?
I use Facebook ads only, targeted exclusively in Germany.
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 is owner-operated. It takes about 1 hour a day. Fulfillment is automated.
What does someone need to do to continue operating the business in its current form?
Answer emails from clients and check in on the ad performance daily.
Growing the business
Can you list a few opportunities for a potential new owner to continue growing the business?
You could decide to open up shop on Amazon.de since we have inventory in Germany. You could pump more money into advertising and thereby forcing more revenue to come in that way. You could go ahead and invest in a backlink profile to generate organic traffic. There are many opportunities here.
What has been the evolution of this asset since its launch?
Revenue is down compared to 2020, which was a top season due to the extremely hot and long summer we’ve had in Europe. Since the cost of advertising has doubled since then, staying profitable is more challenging, however still very much doable.
How does this business make money? What are the current revenue streams?
We sell sunglasses through our Shopify store.
What marketing channels are most profitable for the business?
How does the business currently acquire customers and what is your breakdown for marketing costs?
About 30 to 40 percent of revenue is going toward marketing.
How big is your current team? How many people does it take to run this business?
It’s a one-man operation. It does not take a lot of time to run the business since fulfillment is taken care of. You just need to pay attention to the advertisements and make sure that they are performing well.
What’s the reason for selling your business on Flippa?
I’ve had this business for 4 years now, I’d like to use the money from the sale to set up another brand.