For sale is a 4 year old ecommerce business selling trendy fashion items, coupled with a monthly membership that provides great value to customers. The membership follows a similar model to Fabletics.com: members pay $19.87/mo in exchange for a $20 gift card every month and 50% off all products. The math works out so that the business still makes a profit on every order after charging a nominal shipping fee.
This has proven to be a successful business model for the website over 4 years and over 90% of revenue comes from members. With almost everything dropshipped, the business holds about $20k in inventory at the moment only for popular products. Overseas VAs assist the owners with daily operations. Boasting an average member lifetime of 7.5 months, the business retains memberships well for an ecommerce website and requires <10 hrs/week workload. Fulfillment for the inventory on-hand is done in a warehouse in Idaho and integrated through their CRM.
On the financials you will see revenue and profit are way down from 2018 to 2019. This is because the owners spent $350k in advertising in 2018 that was the primary driver of revenue, and no advertising in 2019. The owners have not had the time to focus on this business and are looking for someone who can not only reactivate the paid ads but give the business some TLC (tender love & care) to take it to the next level.
Sale Pending: No
First Seen: Sun, Feb 23rd 2020
Last Updated: Fri, Mar 27th 2020