Incredible opportunity for a branded drop-shipping site, complete with a top notch sales/marketing funnel and a product with a high average order value and a solid profit margin. Buy it instead of building it!
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? What brought you to start this business?
My name is Charles Lemon, I’m the owner of a marketing company named Geek Powered Solutions in Utah USA. I have been working in the marketing space for 15 years. Started in affiliate marketing and then started building websites on WordPress, then Shopify and other platforms. Now when I am not working on my main marketing business, I have a side passion for building brands for clients, as well as for reselling them.
Creating a brand around a single product in a funnel is the trend now. People have gotten hip to the drop shipping from China model. Not that it doesn’t work, but it doesn’t have the same marketing appeal to consumers of a brand. This is why I started this business. It solves a problem, inventory is here in the US, and it is a very brandable product. I have tested the product and it is scalable. Outside of the tech and marketing stuff, I truly want to help as many people as I can in my life, and ultimately how I found this product. I am always looking for not just any product to brand, but products that help people by solving their problems, and can make their life easier in some way. That is the key motivation for this business.
What sort of marketing had you been doing for this product? Where did you find your money best spent based on CAC and ROAS?
The marketing went through what I like to call a testing phase, on Facebook. I’m looking for engagement, reach and ultimately return on ad spend. I also tested two types of platforms to see which would work best. One was a single funnel complete with upsells and downsells, and the other a traditional Shopify store.
The funnel out performed the Shopify store, from a data standpoint on Facebook. CPC was lower, but not by much. Where I saw the biggest difference was the ROAS on the funnel was significantly higher than the store. For example the store was running on average a ROAS of 14.6 and the funnel was over 20 and even 45 for some ad sets. There was so much feedback from shares, comments and engagement on the ads it just fueled the whole thing ahead, and I had gotten the data I needed. It was a winning product and there was no doubt about it.
How much time does it take to run the business, who else is needed on the team, and what, if anything, is automated?
I would hire a virtual assistant if possible to help with customer service. When you start doing volume in these numbers, the amount of customer service involved is huge. There are always people needing questions answered and for me customer service is a top priority when running any business. I will take approx 30 hours a week to be effective, however it can be mitigated by hiring help. Shopify has plenty of tools to help automate much of the operation process, but I am so hands on, I like to always make sure things are running smoothly on a daily basis, so new owners should expect to give their full time on this to take it to the next level.
What would someone need to do immediately to get this store up and running again?
The store is already set up to make money. All someone would need to do is start running new ads. They will need a label printer, bags for shipping and a laptop or desktop to work from. The funnel I used, does have some flaws. The funnel after sale process consisted of me adding that new sale into my shopify account so that I could keep track of the sale and so that I could easily print labels. There are definitely some better platforms I would suggest for the funnel part. I have all the assets for the funnel, so it wouldn’t be hard to replicate it on another platform.
Can you list a few opportunities for a potential new owner to continue growing the business?
Here were my plans to grow the business even further:
1- Look at getting on Amazon. Selling on Amazon will create a new stream of income, and zero spend to acquire a customer, because they do all the marketing for you. I would suggest that all or half the inventory currently held be sent to Amazon, so it is ready to sell on their site for spring planters.
2- I would also suggest working with the supplier and branding company that I have already established a relationship with, and finishing rebranding the product and packaging. There are other alternatives like, I was planning on going to Farmers markets to sell the bags personally on the ground, but the country shut down, that is still something to look at.
The ultimate goal and ideal situation would be to get the product in a big box brand like Home Depot and Lowes after it has been rebranded, with new look and packaging.