I am selling my ecommerce Shopify business for $77,950.
This is a 2.3x valuation ($66,900) of the company plus ~$19000 of inventory valued at a discounted amount of $11,050.
I am going to be very transparent about this business, so ask any questions you want. If it doesn't sell by January 31, I am taking it off the market. This is because I believe a buyer needs to be in place by February 1 for the buyer to be able to take full advantage of the Spring season upswing, which really starts to take off in February (see revenue chart at bottom).
Business Overview: This is a 7-year-old established Ecommerce business with a niche in American-made cut-to-order mosquito netting that is bigger than anything on Amazon and MUCH better quality than anything on Amazon. These nets are as big as 12 ft x 200 ft.
For the past 3 years, I have been working full-time for biophase and then running this business in the mornings before work and sometimes in the evening after work. I occasionally work on it on the weekends. This is a business that most people could run while still working full-time or part-time if they want to.
98% of orders are through the Shopify website and most traffic is organic. Paid traffic for 2018 and 2019 combined was $4213.35 and SEO expenditure for 2018 and 2019 was $0.00. Average order is over $100 and average profit margin after credit card fees, shipping costs and COGS is 49.40%. Add website expenses, storage costs, and advertising and the profit margin is still a healthy 42.29% profit margin.
By the Numbers
Sales
Average Order Value: $112.40
2018 Revenue: $64,451.24
2018 Profit: $24,422.06
2018 Profit Margin: 37.89%
2019 Total Revenue: $68,631.33
2019 Expenses Breakdown:
Credit Card Fees: $1,929.81
Cost of Goods (including delivery to warehouse): $20,568.08
Packaging: $640.46
Order fulfillment/total shipping costs: $8,086.18
Advertising: $3,035.32
Warehouse: $4,339.79
Website Hosting and apps: $1,010.64
2019 Profit after All Expenses: $29.020.72
Profit Margin: 42.29%
Profit margin increased in 2019 because I increased prices, I optimized shipping services to reduce shipping costs, and I reduced warehouse expenses as much as possible. For someone with a warehouse or 2-car garage, removing that expense alone would increase profits about $4k/year.
Website Traffic
2019 Online store sessions: 43,089
2019 Online store visitors: 39,320
Online store sessions by traffic source
Search: 25,540
Direct: 16,073
Unknown: 780
Social 631
Email 65
Organic Google search makes up most of my traffic. The site ranks on page 1 for all relevant keywords, primarily due to the age of the product pages.
Miscellaneous Info
This business is primarily a summer business, with about 66% of sales between April 1 and July 30.
Employees required: no
Daily hours required: 2 to 3 in summer, 0 to 1 in off-season (October to mid-February)
Space required: I store everything in a 170 sq ft space. A 2 car garage and driveway is ideal. Warehouse space would be a bonus, but not required.
Physical ability: able to lift up to 70 lbs (most of the time, less than 40 lbs), ability to bend, kneel, etc.
95% of the products sold are made in the USA. There is one primary competitor (MosquitoCurtains.com) that sells the exact same products at a much higher price point because they have much higher overhead costs with a big building and many employees.
Cool facts:
In 2017, my business cell rang while I was taking a shit in my bathroom. I answered anyway. That call ended with a $26,500 dropship order profiting over $10,000 and I never touched any product from that order. That netting ended up going to Puerto Rico for use in the aftermath of Hurricane Maria.
Highest-revenue/profit account is SOCOM. They were my very first real customer in 2012, ordering 28 tents from me. Since then, I have supplied all 8 SEAL teams with large mosquito netting panels. I don't ask what they use them for. Lol.
Revenue and Profit Chart
Below is a monthly chart of revenue and profit. Profit margins are higher this year because I increased prices 10% and optimized shipping services to reduce shipping costs.
This is a 2.3x valuation ($66,900) of the company plus ~$19000 of inventory valued at a discounted amount of $11,050.
I am going to be very transparent about this business, so ask any questions you want. If it doesn't sell by January 31, I am taking it off the market. This is because I believe a buyer needs to be in place by February 1 for the buyer to be able to take full advantage of the Spring season upswing, which really starts to take off in February (see revenue chart at bottom).
Business Overview: This is a 7-year-old established Ecommerce business with a niche in American-made cut-to-order mosquito netting that is bigger than anything on Amazon and MUCH better quality than anything on Amazon. These nets are as big as 12 ft x 200 ft.
For the past 3 years, I have been working full-time for biophase and then running this business in the mornings before work and sometimes in the evening after work. I occasionally work on it on the weekends. This is a business that most people could run while still working full-time or part-time if they want to.
98% of orders are through the Shopify website and most traffic is organic. Paid traffic for 2018 and 2019 combined was $4213.35 and SEO expenditure for 2018 and 2019 was $0.00. Average order is over $100 and average profit margin after credit card fees, shipping costs and COGS is 49.40%. Add website expenses, storage costs, and advertising and the profit margin is still a healthy 42.29% profit margin.
By the Numbers
Sales
Average Order Value: $112.40
2018 Revenue: $64,451.24
2018 Profit: $24,422.06
2018 Profit Margin: 37.89%
2019 Total Revenue: $68,631.33
2019 Expenses Breakdown:
Credit Card Fees: $1,929.81
Cost of Goods (including delivery to warehouse): $20,568.08
Packaging: $640.46
Order fulfillment/total shipping costs: $8,086.18
Advertising: $3,035.32
Warehouse: $4,339.79
Website Hosting and apps: $1,010.64
2019 Profit after All Expenses: $29.020.72
Profit Margin: 42.29%
Profit margin increased in 2019 because I increased prices, I optimized shipping services to reduce shipping costs, and I reduced warehouse expenses as much as possible. For someone with a warehouse or 2-car garage, removing that expense alone would increase profits about $4k/year.
Website Traffic
2019 Online store sessions: 43,089
2019 Online store visitors: 39,320
Online store sessions by traffic source
Search: 25,540
Direct: 16,073
Unknown: 780
Social 631
Email 65
Organic Google search makes up most of my traffic. The site ranks on page 1 for all relevant keywords, primarily due to the age of the product pages.
Miscellaneous Info
This business is primarily a summer business, with about 66% of sales between April 1 and July 30.
Employees required: no
Daily hours required: 2 to 3 in summer, 0 to 1 in off-season (October to mid-February)
Space required: I store everything in a 170 sq ft space. A 2 car garage and driveway is ideal. Warehouse space would be a bonus, but not required.
Physical ability: able to lift up to 70 lbs (most of the time, less than 40 lbs), ability to bend, kneel, etc.
95% of the products sold are made in the USA. There is one primary competitor (MosquitoCurtains.com) that sells the exact same products at a much higher price point because they have much higher overhead costs with a big building and many employees.
Cool facts:
In 2017, my business cell rang while I was taking a shit in my bathroom. I answered anyway. That call ended with a $26,500 dropship order profiting over $10,000 and I never touched any product from that order. That netting ended up going to Puerto Rico for use in the aftermath of Hurricane Maria.
Highest-revenue/profit account is SOCOM. They were my very first real customer in 2012, ordering 28 tents from me. Since then, I have supplied all 8 SEAL teams with large mosquito netting panels. I don't ask what they use them for. Lol.
Revenue and Profit Chart
Below is a monthly chart of revenue and profit. Profit margins are higher this year because I increased prices 10% and optimized shipping services to reduce shipping costs.
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