Back to Listings Listing #44681: Sports & Outdoors

Asking Price : $139,795

Annual Gross Revenue : $194,366

Annual Net Profit : $55,920

Profit Multiple : x2.50

Inventory Value: N/A

R-Index : 145

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From the Broker

This listing is for a dropshipping business created in March 2016 in the sports & outdoors niche. The Shopify site sells products in the survival equipment, martial arts, and collectors niches. The business sells primarily to the UK and dropships products from several vetted quality suppliers to customers worldwide. With a team in place, this business requires minimal hours to maintain.

The Seller has refined their supplier list extensively to narrow down to only the most responsive and high-quality providers who have great feedback. In turn, the business has received fantastic product feedback and reviews. The Seller looks forward to passing these good relationships with the suppliers over to the new owner. Focusing on the most profitable products has also made customer service easier and helped to streamline the business.

The Seller has created Standard Operating Procedures for the Buyer that are comprehensive and organized into a table of contents by section and topic to enable the new owner to learn quickly and provide a comprehensive reference resource. These cover processes and templates for almost every possible customer interaction, processes for adding and sourcing new products (approximately 30 pages of processes and templates), a template for Work Agreement for contractors, a Trello board for task and project management, a Zendesk portal for customer service, and the vetted list of suppliers.

The Seller spends around one hour a day focusing on strategy, training staff, and taking care of website updates. The Operations Manager takes care of product management, sourcing new products, and accounting reconciliations. While the Operations Manager will not be continuing after the sale, the Buyer could train a new staff member or take on some of this work themselves (as no expertise is required, and all tasks can be learned quickly). The second employee fulfills orders via the website, takes care of customer service via Zendesk and Facebook Messenger, and writes blog articles which are posted on the website, and also sent to the email list. This second employee would likely continue after the sale.

The primary traffic strategy is SEO, with the majority of traffic coming organically from Google and other search engines, as well as several articles and forums online which generate organic traffic. As a secondary tactic, the Seller has used Google Adwords. This has generated some sales and has a continually solid return on ad spend.

Social media also generates some traffic, which is all organic. When the Seller uploads new products, they are automatically posted to Pinterest. When the Seller uploads new blog posts, they are automatically posted to Facebook. Social media includes a Facebook account with 2K+ followers, Pinterest with 70K+ monthly views, and Instagram with 6K+ followers.

The business has collected over 3K email addresses from website sign-ups and customers who have purchased. The Seller has started monetizing this list with an email every couple of months and for specials and promotions, but email sales is an opportunity for the Buyer to improve, as there is still a lot more that could be done to generate sales from this list.

In this niche, the competition's websites are generally quite poorly designed. While some have a strong SEO presence and/or good products, their web presence is generally very behind, with hard to navigate, old-style websites that don't work very well on mobile. This business's website runs on a more up-to-date platform and has been heavily optimized by a website usability expert.

*While at one point this site used PBNs, most (possibly all) links have been removed, and are not required for the website continue its current traffic and sales.

*A previously-used domain is 301 redirected to the current domain.

*A small amount of revenue comes in from Amazon Affiliate links on the site's blog posts. These earnings are part of an automated system and have been included in the P&L. The Seller will include their Amazon Associates account in the sale.

Site Highlights

Average Monthly Revenue: $16,197

Average Monthly Expenses: $11,537

Average Monthly Net Profit: $4,660

* We are using the last 12 months to determine the averages.

Assets Included in Sale

Included in the sale of this business are:

  • Primary domain & all site content/files
  • A few other niche related domains (no websites)
  • A Tumblr blog with links to the main site
  • Social Media accounts
  • SOPs
  • Templates
  • Several accounts for business tools
  • Supplier relationships
  • Amazon Associates account

Work/Skills Required

The Seller currently spends around 5 hours per week:

  • Training
  • Working on strategy
  • Taking care of website updates

Reason for Sale

The Seller has recently started a full-time job and doesn't have the time to help the business realize its full potential. The Seller would like to pass it on to a new owner who can continue its growth.

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Listed By

Sale Pending: No

First Seen: Tue, Jul 10th 2018

Last Updated: Thu, Feb 28th 2019

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