Once in a lifetime opportunity for an eCommerce store making HUGE revenue numbers through bulk sales during this odd time in the world.
Watch the video below to learn a bit more about the owner and his business.
Tell us a little about yourself. What’s your background?
Here’s a little video that provides a background:
In short, I started my career back in 2002 as the first Adwords optimization lead at Google after majoring with a focus in internet business at Stanford. I’ve since founded and sold, or acquired, grown, and sold many internet related businesses ranging from SaaS to eCommerce. I’ve sold some of those right here on Flippa and have had great experiences on the Flippa platform where I have been an active member for 16 years!
You have over 2,000 products on your site. Are you working with multiple drop-ship vendors or relaying all products through a single 3PL?
It’s important to note that there are two websites in this asset sale. The B2C website at https://wholesale.masks.com and the B2B website at https://wholesale.masks.com. The B2C website has over 100k URLs crawled by Google because it is where we hosted the crowdfunding initiative (every public school in the USA has its own webpage there). We also have 2000+ licensed, exclusive, mask designs there and 2000+ neck gaiter designs- but those have never been marketed- another huge opportunity. A company called AOP+ does the printing and shipping for those “fashion masks” and they are super high quality, the also come with nose crimps and filters. It is 100% automated from purchase through fulfillment.
I have been wholly focused on the B2B website which currently only sells Hanes masks and some other PPE but could certainly diversify and sell other products. All of those products are drop-shipped by vendors. Shipping and logistics is 100% handled by the vendors. For printed masks, we have Hanes ship them to printers (Both are located in North Carolina) and then the printers ship them to the customers.
According to Google Analytics, the majority of your traffic is arriving via Social Media. Can you dive into this for us?
This is inaccurate in terms of the current business. It’s important to note again that there are two websites- the B2C website and the B2B website. During the crowdfunding campaign (on the B2C website) which was running in July and August – I heavily relied almost exclusively on Facebook ads, and had a but I haven’t run Facebook ads in the past few months. Traffic now is mostly a diverse mix of search engine, direct traffic, PPC ads, and email marketing. Again, all paid marketing is pointing to the B2B website just because that’s all I’ve had time to focus on. The B2C website has gotten no love since the crowdfunding campaign ended but it has gotten 4,000 fantastic new exclusive mask and gaiter designs just waiting for some attention…Those are just teed up ready for someone to come along and market them and the audiences from a well-trained Facebook pixel will be super valuable, as well as the list of 10k+ crowdfunding participants that have never been remarketed to! AND those 90k+ webpages – one for every public school in the USA are just waiting there begging for Round 2 of the Great American Mask Drive crowdfunding initiative.
You’re running this yourself. How much time does it take to run the business, who else is needed on the team, and what is automated?
I’ve been quite obsessive over this business, so I am constantly online and live chatting with customers, nurturing leads, working on the website, answering emails, creating quotes, managing marketing campaigns, doing admin work. So it takes a lot of time- even though it is an outsourced business model in terms of dropshipping products and printing. Bulk masks purchases are often a considered decision and not just an impulse buy, so nurturing leads and forming relationships is key.
The main reason I’m selling the business, quite honestly, is because I have taken it to the maximum amount that a single person can really take it, and I’m not interested in hiring out a team. It is primed to grow super fast with a team. Its success is now limited by the fact that I’m only one individual. My ability to market it properly, form business development relationship, bid on projects, etc is being limited by needing to respond to customers and handle admin work. I have not even been able to focus on the “fashion mask” B2C side of the business at all- so we have these 2000+ beautiful mask designs just sitting there and nobody knows about them- because I’m too busy managing the B2B side. So I would definitely recommend that whoever buys it plans on having different people manage different aspects of the business. Being customer service, tech, finance, sales, and CEO all in one is quite a lot.That said, right now it is an outsourced dropshipping model on the product side. The business relies on great relationships with the mask manufacturers and printers who handle all product fulfillment, printing, and shipping logistics. So (at least as the current business model stands), all of the product related work is done for you – and done really well. Hanes’ team is great and we have a well-established rapport and methodology. Our printers (both on fashion masks and on the bulk mask side) are really good- they print and ship the masks directly.
A critical factor in this listing is the lease terms on the domain. Do you think this business could be just as successful without the high authority domain name?
The reason the business is successful is because of the domain name and Masks.com brand. Hands down, unequivocally one of the most valuable assets in this sale is the opportunity for a potential acquirer to run their business on the Masks.com domain name and with the Masks.com brand. It is some of the most prime “virtual real estate” available in the world, and if it were for sale the price for the domain would no doubt be many millions of dollars. So to be able to acquire the business and grow it, or even establish your own new business on the domain name for perpetuity at a fraction of the cost of domain ownership is a steal for the right acquirer.
The Masks.com name lends authority to the business- when I send a quote out from Masks.com to a business, school, or government agency, the fact that it is Masks.com adds invaluable legitimacy. Customers view Masks.com as an authority on masks- because, “it must be”…I’ve heard this on the phone multiple times. Besides that, it gets a lot of type in traffic just because of the name. Masks.com can become the dominant player in this space and because it already has the built in advantage that no other competitor can touch: it is Masks.com, there is no other. Being able to operate your business on the domain for as long as you want. at a fraction of the cost of owning the domain is a no-brainer for the right buyer.
I want to be sure everyone looks at the lease explainer video in the listing as well so that they are fully aware of the terms of the lease and why it’s a bargain. You can walk away at any time, no penalty no fee… but it’s yours far as long as you make the (absurdly cheap) monthly payments.
Can you list a few opportunities for a potential new owner to continue growing the business?
- B2C website/fashion masks- I had over 2000 designs licensed and created for fashion masks but I have been too focused on the B2B site, and too busy to even build any marketing campaigns around these. It is a HUGE opportunity to do something with these.
- Other brands/quantities/pricing on B2B- On the B2B side, I have only sold Hanes makss and only in Boxes of 500 at $1.50 per mask with rare exceptions. There is no reason why someone can’t sell other brands there (there is no exclusive agreement), and no reason why someone can’t sell other quantities. I’ve done this to keep it streamlined and simple because I’m running the business 100% by myself.
- PPE marketplace – Masks.com could easily become a mega-marketplace for PPE which spans all sorts of masks (disposable, reusable, face shields), plus gloves, sanitizer, etc. It is the most prime real estate online to create that kind of marketplace and leverage the brand name. Again, I’ve just been too busy.
- Purchasing Cooperatives/ Amazon/ Rangeme. Masks.com has now been accepted to sell Hanes on Amazon but I haven’t started doing so yet. It’s also been awarded a contract by the TIPS purchasing cooperatives which has 1000’s of members (school districts, local governments), but I haven’t started selling purchase orders to them yet. Also, you could leverage platforms like RangeMe to get products onto store shelves, again, something I haven’t done.
- Create your own PPE brands. This would be super easy to doProduct diversification
- Remarketing to existing customer list (b2b and retail). I have never reached back out to the 10k+ customers who purchased masks to be sent to schools during the crowdfunding campaign. I have never used the audiences in subsequent marketing campaigns either- they are primed for remarketing in Facebook, etc. I have also barely remarketed at all to existing B2B customers. The acquirer will get both lists and all audiences.