Tell us a little about yourself. What’s your background? How did you start the business?
I have a background in Digital Marketing specializing in Lead Generation. I purchased the website as a first foray into e-commerce to learn more about that side of the digital marketing world.
As an e-Commerce business, where are your products made?
All of our manufactures are located in the United States.
As a SaaS business, what can you tell us about your Customer Lifetime Value (CLV) and Customer Acquisition Cost (CAC)
Customer Lifetime Value is a nut we were never able to crack. Since it is essentially a party good store, we had a hard time tracking down repeat customers. If we had to do it again, we would try to focus on building relationships with event planners, senior living facilities, schools, and anyone else who may routinely have events in this space.
Customer acquisition costs are actually pretty low in this niche, margins are good. They’re especially good for us because a bulk of our traffic comes from Organic Search. Facebook is a channel that worked really well for us but caused us a lot of hassle when it came to fulfilment.
How have you marketed the product and where are your customers originating from?
Primarily Organic Google Search, but have used Facebook and some Google Ads as well. Etsy is a huge channel for us as well, but we don’t really run ads there, it’s all organic traffic.
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?
Owner-operated, we only ever had 2-3 college students help with fulfilment part-time.
What does someone need to do to continue operating the business in its current form?
Really it’s pretty turnkey. Absorb the inventory we have on-hand and then set up merchant accounts with our 3 suppliers in the US or just set up a drop shipping model (which is what I would do if I started over tomorrow).
Can you list a few opportunities for a potential new owner to continue growing the business?
Amazon. Seriously, getting these into Amazon will make this business pay for itself (at the $25K BIN price) within less than 12 months IMO. I signed a contract with the previous seller saying I would not sell on Amazon (a very dumb idea) but the new buyer won’t have those concerns.
What has been the evolution of this asset since its launch?
We put a ton of money and time into building up the Organic presence. Check our stats on any major SEM tool. We did it right, and the Organic traffic is very stable and solid. We also narrowed down the product SKUs to focus on only high-margin stuff.
Etsy was a surprise for us with this business. I did not know how successful that would be and it worked out well.
How does this business make money? What are the current revenue streams?
E-commerce sales coming from two channels – Bigcommerce (DTC website) and Etsy.
What marketing channels are most profitable for the business?
Same profitability on Etsy and Bigcommerce
How does the business currently acquire customers and what is your breakdown for marketing costs?
All Organic Traffic. No money is being spent on ads.
How big is your current team? How many people does it take to run this business?
Right now I have a family member doing all the fulfilment.
What’s the reason for selling your business on Flippa?
I have used Flippa in the past as both a Buyer and a Seller and always appreciate the transparency and ease of use.