The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success

Need Advice: buying E-Commerce during finance crisis

Remove ads while supporting the Unscripted philosophy...become an INSIDER.

andreysfastlane

New Contributor
Read Millionaire Fastlane
Jul 27, 2020
5
3
14
Germany
Hello everyone,

at first thanks to all for the life changing tips here on forum.

I have a chance to buy an E-Commerce Shop. Its a personalized POD Shop.
It had 15k revenue in 2 months. 30% margin.
He sell it for 12k~ (Seller has no time to run it, because of time, he is student)
FB Ads Roas 3-8
I can optimize many things to improve Customer Lifetime Value. Upsells, Cart abadonment and Marketing strategy.

I did not want to put all balls in one basket. And in this time (covid, potential financial crisis) it not so easy to make a decision.

I gave him an offer to owner finance it. He has accepted it. So i can be sure he is not a scammer. A seller get his money if i make money with his project.

I know it not so easy to give an advice, because nobody knows me here. I would introduce me later.

I know, my english is not the best but im learning fast! Thank you.

with best regards
Andrey
 

Don't like ads? Remove them while supporting the forum. Subscribe.

juresesko

Bronze Contributor
Read Millionaire Fastlane
Speedway Pass
Apr 10, 2020
106
160
140
17
Slovenia
If I were in this students shoes I would stop going to school and focus on whats actually making money for me. Because of that this sounds fishy.

How much did he spend on ads in that 2 months?
Can you add value to the product you will be selling or just to the site?
Was his site in the past year growing or falling?
How did his site do at the corona times?
 

Simon Angel

Bronze Contributor
Speedway Pass
Apr 24, 2016
145
398
193
My presumption, since this is a POD store, is that he landed on a winning design which sold well for a month or so but is now on a downward trend and he's trying to get rid of it to an unassuming buyer. If he's netted near 5K in these two months, and if we just assume that the products will continue selling at the same rate (they never do), he only needs 2 and a half months to net what he's valuing it at.

He's likely more aware than you are that the sales will go down soon, if they haven't started to already.

Is the store running on Shopify? Ask him to screencap his sales graph for July.
 

biophase

Legendary Contributor
EPIC CONTRIBUTOR
FASTLANE INSIDER
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
Jul 25, 2007
7,221
33,573
5,083
Scottsdale, AZ
Hello everyone,

at first thanks to all for the life changing tips here on forum.

I have a chance to buy an E-Commerce Shop. Its a personalized POD Shop.
It had 15k revenue in 2 months. 30% margin.
He sell it for 12k~ (Seller has no time to run it, because of time, he is student)
FB Ads Roas 3-8
I can optimize many things to improve Customer Lifetime Value. Upsells, Cart abadonment and Marketing strategy.

I did not want to put all balls in one basket. And in this time (covid, potential financial crisis) it not so easy to make a decision.

I gave him an offer to owner finance it. He has accepted it. So i can be sure he is not a scammer. A seller get his money if i make money with his project.

I know it not so easy to give an advice, because nobody knows me here. I would introduce me later.

I know, my english is not the best but im learning fast! Thank you.

with best regards
Andrey
2 months is lot alot of time to establish if the business will be successful long term. However, that is reflected in the low asking price.

I would be worried that the business spiked and is now on a downtrend and that the FB ads from 2 months ago are not converting as much anymore.
 
OP
OP
A

andreysfastlane

New Contributor
Read Millionaire Fastlane
Jul 27, 2020
5
3
14
Germany
If I were in this students shoes I would stop going to school and focus on whats actually making money for me. Because of that this sounds fishy.

How much did he spend on ads in that 2 months?
Can you add value to the product you will be selling or just to the site?
Was his site in the past year growing or falling?
How did his site do at the corona times?
Maybe he doesnt know about fastlane?
Or he knows more than he speak about.

He spent 60€ a day
Average daily conversions 4
Basis price 49€
Margin 30%

Revenue:
April 4k€
May 8.8k€
In May He stopped to advertise
June 1k€

I can optimize many things to increase average cart


My presumption, since this is a POD store, is that he landed on a winning design which sold well for a month or so but is now on a downward trend and he's trying to get rid of it to an unassuming buyer. If he's netted near 5K in these two months, and if we just assume that the products will continue selling at the same rate (they never do), he only needs 2 and a half months to net what he's valuing it at.

He's likely more aware than you are that the sales will go down soon, if they haven't started to already.

Is the store running on Shopify? Ask him to screencap his sales graph for July.
Its Not about one Design, its personalized designs for customers. In his best month he stopped to advertise....He begins with his Masters degree, i have googled and found him. Its true.

2 months is lot alot of time to establish if the business will be successful long term. However, that is reflected in the low asking price.

I would be worried that the business spiked and is now on a downtrend and that the FB ads from 2 months ago are not converting as much anymore.
Maybe you can look at it If i send you the Link.
 

Simon Angel

Bronze Contributor
Speedway Pass
Apr 24, 2016
145
398
193
A classic case of "It's on the internet, so it must be true".

He stopped advertising in his highest revenue month for.. no reason at all? Yep, seems legit alright.

You know, I think you probably should actually buy the store. I mean it's an obvious scam, but you seem so oblivious you might as well learn quite a few lessons by getting scammed.
 

ZCP

Legendary Contributor
Staff member
EPIC CONTRIBUTOR
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
Oct 22, 2010
2,818
9,645
2,206
Woodstock, GA
Get Rich Quick often leads to Learn Things Expensive.

good lessons.

what would be the plan for 24 month success with this business?
what would be your exit strategy?
 
OP
OP
A

andreysfastlane

New Contributor
Read Millionaire Fastlane
Jul 27, 2020
5
3
14
Germany
A classic case of "It's on the internet, so it must be true".

He stopped advertising in his highest revenue month for.. no reason at all? Yep, seems legit alright.

You know, I think you probably should actually buy the store. I mean it's an obvious scam, but you seem so oblivious you might as well learn quite a few lessons by getting scammed.
Thats the question, why he stopped to advertise.

Like im already said, seller has accepted my offer to owner finance it. I get it for 0$.
If this shop get revenue, He get his money back, on monthly basis. If not, he get his shop back.

Get Rich Quick often leads to Learn Things Expensive.

good lessons.

what would be the plan for 24 month success with this business?
what would be your exit strategy?
My plan is to improve it and scale it. Spring into fastlane.
Exit strategy, like i said below i offered seller owner financing. Seller get his money from Revenue. If not, he get his shop back.
 

ZCP

Legendary Contributor
Staff member
EPIC CONTRIBUTOR
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
Oct 22, 2010
2,818
9,645
2,206
Woodstock, GA
@andreysfastlane ..... what is YOUR exit strategy?
you do not have a business if you do not have an exit strategy.

for your plan:
what are the first three SPECIFIC things that you will do to accomplish the improve / scale it task?
 

Don't like ads? Remove them while supporting the forum. Subscribe.

OP
OP
A

andreysfastlane

New Contributor
Read Millionaire Fastlane
Jul 27, 2020
5
3
14
Germany
That’s not vague at all. Sounds like a great plan.
Thank you.
Worst case what can be happen, i will lose a little bit money for advertising and time.
Best case i will spring on the fastlane and sell bussines for a life changing sum.

@andreysfastlane ..... what is YOUR exit strategy?
you do not have a business if you do not have an exit strategy.

for your plan:
what are the first three SPECIFIC things that you will do to accomplish the improve / scale it task?
Exit strategy to sell business for a life changing sum.

1. Increase margin and average value order
- I already found less priced supplier. I have only to check quality.
- To increase average value order i will add possibility for upsells. There are more products customers can add to cart with main product.
- Add premium product/variant for better paying customers.
2. Increase conversion
- Add more social Proof like Notifications
- Timer on Website
- Cart abadonment plugin! People often need more time for choosing photo...if they Order later, automatic Notification will sent out with time limited free delivery. "Order today with free Delivery"
3. Happy customers / Activate Mouth to Mouth Marketing
- Edit communication with customers. I read it in one Copywriting book.
One Shop increased their orders only by edit communication with their customers. All the communication was in teatralic style. I think it fits perfectly for this shop too.
- 2 days after they get their order, automatic mail asking for review and give coupon to share with their friends or asking them to tell about it, with social Sharing buttons.

These are first steps i will integrate before start marketing.

4. After all works fine - Automate process. It should works without my activity because im on slowlane bussines so i have not much time. Maybe this changes soon.

Thank you all for help and advices. Im always open for critic and always ready to learn new skills.
Im not euphoric, i only need other view perspectives from fastlaners.
 
Last edited:
  • Like
Reactions: ZCP

juresesko

Bronze Contributor
Read Millionaire Fastlane
Speedway Pass
Apr 10, 2020
106
160
140
17
Slovenia
So where are you now?
How close are you to buying it?
Can you already feel the tension of the spring that will spring you in the fastlane?
 

Create an account or login to comment

You must be a member in order to leave a comment

Create account

Create an account on our community. It's easy!

Log in

Already have an account? Log in here.

Sponsored Offers

  • Sticky
MARKETPLACE Fox's Web Design Guide: Earn $100K this year (Yes, 2020!) and Go Fastlane
How do I sell to a different country with an accent? And a foreign number. Cold e-mails don't...
  • Sticky
MARKETPLACE Kill Bigger Incubator
Hey @Cruiser I just shot you a reply! Amazing product BTW!
  • Sticky
MARKETPLACE Lex DeVille's - Advanced Freelance Udemy Courses!
Well, we made it halfway through the year. Don't know what the rest'll bring, but it's gonna be...
  • Sticky
FEATURED! Introducing... WEALTH EXPO$ED, A Short Story By MJ DeMarco
Not really a teaser but it does employ a fictional story, so that is similiar. This upcoming...
  • Sticky
MARKETPLACE You Are One Call Away From Living Your Dream Life - LightHouse’s Accountability Program ⚡
Dropping a quick note in here to say... if you are on TFL, you are part of an elite group of...



Forum Sponsor

sponsor

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Monthly conference calls with doers
Ideas needing execution, more!

Join Fastlane Insiders.

Top Bottom