Tell us a little about yourself. What’s your background? How did you start the business?
I’m a 22-year-old marketing graduate who started Warwick Street Clothing as a side-business over the UK lockdown period last March. Since then, it has grown into a good looking brand that I’m very proud of.
As an e-Commerce business, where are your products made?
My products are manufactured by a reputable UK based dropshipping supplier named Inkthreadable
As an e-Commerce business, what can you tell us about your Customer Lifetime Value (CLV) and Customer Acquisition Cost (CAC)
The customer acquisition cost is very little as most of the marketing is done on social media. Baring this in mind, the average customer lifetime value is £35 ($48), and the highest is £94 ($130). So, the margin between Acquisition and Lifetime Value is huge.
How have you marketed the product and where are your customers originating from?
The brand is currently marketed on social media (Instagram, Tik Tok, Facebook etc) as this is the easiest way to position the brand in front of the target customers, who are young people/students based in the UK.
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?
The store is owner-operated, but it is a very low-maintenance business. This is because Inkthreadable does almost all the logistics once the order is placed as it’s a dropshipping business.
What does someone need to do to continue operating the business in its current form?
If the owner can commit to marketing, then the business requires around 2-3 hours of work a week to run the store effectively and bring in new customers.
Can you list a few opportunities for a potential new owner to continue growing the business?
The store gets a lot of attention from the USA, this is to no surprise either as the clothing is of design that is highly fashionable in America because of its English look. Therefore, moving into the American market could be a massive opportunity for the business.
Also, A direction I looked at taking the business in was that there are roads called Warwick Street in almost every major British city, as well as some major American cities and even Australia. This could make for some excellent marketing/product campaigns due to its locational appeal, and grounds to take the brand worldwide if it grew to that height. Inkthreadable ships worldwide, so this globalisation wouldn’t be too difficult to integrate.
What has been the evolution of this asset since its launch?
It started as a very basic website with little design input and no modelling photos. Now, it has modelling photos of almost all products, a beautiful and thoughtful design after changing the Shopify theme. In addition to this, the store has seen seasonal products added to the product portfolio such as beanie hats and summer caps.
How does this business make money? What are the current revenue streams?
Warwick Street Clothing makes money through sales alone. No other revenue streams.
What marketing channels are most profitable for the business?
The main marketing channel Warwick Street uses is social media (Instagram, TikTok, Facebook) as these are low-cost avenues of customer acquisition, any revenue yielded from these customers is highly profitable.
How big is your current team? How many people does it take to run this business?
At its current state, there is no one else needed to run the business. Therefore, the current team is simply 1 person.
What’s the reason for selling your business on Flippa?
I am beginning a new full-time job and starting my own family and can’t see myself being able to take this business to the heights I believe it can go. Therefore, I want to find the right buyer who will be able to take this brand on to do amazing things.