Buy a Business/Cycling Apparel & Accessories eCommerce

Cycling Apparel & Accessories Store

$125,000.00

Executive Summary

 

On offer is a dropshipping eCommerce website specialising in unique and interesting cycling apparel and accessories. The store has fulfilled over 15,000 orders and generated a revenue of $580K+ in its first year of operating. The business is run by one owner with the support and assistance of 2 Virtual Assistants (VA’s) who handle customer service, order fulfilment, content creation and after-sales service.

 

100% of the sales are derived via the business’s website; and in efforts to improve the business's operations, the owner has engaged the services of a digital marketing agency, a conversion optimisation agency as well as met and negotiated directly with the store’s Chinese suppliers. 

 

The number of suppliers has now been whittled down to two main suppliers which has solved many payments and logistical issues typical with drop shipping, therefore, making the business very scalable. The owner has decided to sell because he will shortly be relocating to Hong Kong to progress his career and will no longer be able to focus on/dedicate any time to the business.

 

Why should you buy this business?

 

The business has a strong track record with traffic and revenue; in its first year, the store generated over $588K in revenue and nearly 500K sessions with a conversion rate of 1.9%.

 

The brand has a loyal customer base, an average review rate of 4.3 stars (out of 5) and a 34% customer return rate.

 

In addition to this, the seller engaged the services of a conversion optimisation agency to rebrand the website in Feb 2019 with the aim of further increasing the stores conversion rate and revenues (the business is projected to generate between $750K to $900K in revenue in 2019), and several operational improvements have been made to make the business scalable and sustainable.

 

How can you improve this business?

 

As the new owner, you could either leave the business as it is and reap the benefits from money generating self-sufficient store, or you could take the site to new heights by incorporating your own growth strategy, which could include:

 

  • Further development of Facebook and Google ads – The marketing agency working with the business has developed a strong strategy for 2019, which aims to grow the businesses audience by 15 - 25%.
     

  • Focus on email marketing efforts – So far, not much email marketing has been done, but with the right strategy in place for the ever-growing mailing list (currently at 15000+ subscribers), you could expect to generate an additional $5K to $10K of revenue per month.
     

  • Invest in affiliate marketing – By investing some time and money into affiliate marketing you could bring in up to an additional $10K per month (The current owner has already held meetings with two large affiliate marketing companies).
     

  • Work with fitness and cycling influencers and clubs – Sponsorships and influencer marketing is an area the current owner has not yet explored and will be a great way to reach new audiences and grow revenues.

 

Strengths

 

  • Brand and Community Loyalty

  • High levels of Automation

  • Positive Customer Reviews

  • Scalable Business Model

  • Well Established and Unique Brand

 

Opportunities

 

  • Launch New Products

  • Start Selling into New Markets

  • Improve Current Marketing Efforts

 

Operations

 

The stores daily orders are tracked directly by the two suppliers who have agreed to a monthly invoicing payment setup/payment term. This gives the seller much greater control over the fulfilment process and has helped the issue of payment security which occurs with other websites. 

 

The VA’s are also highly trained in the day to day processes and deal with the suppliers with little to no supervision required. 

 

With the order fulfilment and other general day-to-day tasks being taken care of directly by the suppliers and the VA’s, the owner is freed up to oversee the processes and tend to the following; 

 

Key day-to-day operations

 

  • Bookkeeping

  • Website Maintenance

 

Marketing

 

  • Email Marketing

  • Facebook Advertising

  • Google AdWords

 

Broker's Note

 

This store would be a great opportunity for an experienced investor searching for a business with a steady flow of organic traffic that is scalable and offers the flexibility of active or passive management. 

 

The VA’s will transition along with the business and will continue to perform their roles. The roles and responsibilities handled by the current owner could easily be taken on by the new owner with little to no prior experience or expertise.

 

The sale of this business will include a minimum of 30-days post-sale support and training (if required).

 

List of Assets

 

The sale of this website will include everything owned by the business including, but not limited to;

 

  • Brand assets

  • Customer databases

  • Existing Manufacturing/Supplier Relationships

  • Marketing Material and collateral

  • Social Media Accounts;

  1. Instagram – 2,700 followers

  2. Facebook – 27,000 followers

  • Mailing List – 15,000+ subscribers

  • LinkedIn Social Icon
  • Instagram Social Icon

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Location
London, United Kingdom
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Phone
US: +1 415 992 5980 | UK: +44 (0) 7904401910
Skype
larry.afriyie_1

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