Buy a Business/Streetwear Fashion eCommerce

Fashion eCommerce

$200,000.00

Executive Summary

 

For sale is a fast-growing e-commerce drop shipping business in the ‘streetwear’ niche. The business has been active in 44 countries since its launch in 2017 and has the potential to continue expanding its global reach.

 

The store's popularity has helped the business maintain its steady growth, and whilst the products have a wide appeal, the businesses typical demographic is young men & women aged between 18-30 years old.

 

The business achieved its growth through the implementation of an effective Facebook (25k+ followers), Instagram (24k+ followers) and email (6K+ subscribers) marketing strategy. Its currently managed by its two owners/operators, but the day to day responsibilities could be outsourced to Virtual Assistants.

 

The owners have decided to sell the business so that they can dedicate 100% of their time to a new business venture.

 

How does the business generate its revenue?

 

100% of the revenue is derived through the website and Shopify store, with new customers being acquired through social media advertising (mainly Facebook and Instagram). 

 

As an e-Commerce business, there is immense potential for scaling and continued growth.

 

Why should you buy this business?

 

The business is just under 3 years old but has experienced tremendous year on year growth since its launch in 2017. The growth has been achieved by only running marketing and advertising campaigns with Facebook and Instagram, which leaves a massive opportunity with Google Ads or other platforms to push the business to the next level.

 

The store gained instant popularity from the word go, generating revenues of $111,960 and netting $41,109 in its first 6 months of operation (August to December 2017).

 

The revenues grew to $596,249 in 2018 ($240, 034 in the 6 months to December 2018) with a net profit of $187,677 ($80,696 in the 6 months to December 2018).

 

2019 started with a bang and continuing the growth trend by generating revenues of $113,000 in the 3 months to March 2019. With such a strong start, the business is on track to have another good year.

Strengths

 

  • High Barrier of Entry to Market

  • High-Profit Margins

  • Large Customer Database

  • Passive Revenue

  • Scalable Business Model

 

Opportunities

 

  • Launch New Products

  • Improve Current Marketing Efforts

  • Increase Basket Size Per Customer

  • Expand to New Markets

  • Own stock

  • Expand into other territories (eg. Russia, the US etc)

 

Administration

 

  • Customer support (1-3hrs/day) – The majority of queries are focused around shipping details and return requests. The owners take this as a chance to make customers advocates of the brand by delivering high quality and personalised answers/solutions.

 

  • Planning and purchasing new inventory (1hr/day) - Sourcing new products and suppliers. For current product list, it’s a matter of reordering new inventory in time. The articles are manufactured in China and the lead times can be between one to two months. However, items that are in stock are purchased from Germany and lead times between 5 to 10 days. 

 

  • General Administration (2hrs/month) – Bookkeeping and preparation for the filing of quarterly Dutch sales taxes.

 

Fulfilment and Assembly

 

All orders are fulfilled by a third party. Thank you emails, order confirmations with invoices and emails with tracking information are sent to the customers automatically. 

If products are out of stock, customers are able to sign up to receive a message when the items are back-in-stock, which is sent automatically when the inventory is replenished.

 

Marketing and Business Development

 

  • Marketing (1hr/week) – Reaching out to vloggers, bloggers, influencers and content creators. An affiliate program has been set up. This would be a great way to ramp up marketing and promotion activities.

 

  • Online marketing (4hr/day) – Managing FB and Instagram ad campaigns.

 

  • Business Development – Currently no time is spent on business development. However, there are a few options to explore such as partnering with other e-commerce stores and resellers for other sales channels. The current owners are approached by businesses wanting to partner up every now and then.

 

How can the future owner improve this business?

 

3rd Party Marketplaces – As the new owner, you could expand to other e-commerce platforms to expand the businesses reach and encourage further growth. 

 

Currently, the business only sells products via its website/Shopify store, but by expanding onto platforms like Amazon, eBay, Walmart, or Zulily, the business could increase its sales and revenues significantly.

 

Social Media – With social media is being a significant traffic (and thereby revenue) driver for e-commerce businesses, establishing and growing a social media presence through more platforms (eg. Twitter, YouTube, Pinterest, VK, Google AdWords, etc.) will help attract more traffic and increase conversions.

 

Remaining Inventory

 

Units: 118

 

Value: $2,031

 

Broker's Note

 

This store would be a great opportunity for an experienced investor searching for a new opportunity to add to their portfolio. The business has a steady flow of organic traffic that is scalable and offers the flexibility of active or passive management. 

 

The day to day operations could easily be taken on by the new owner with little prior experience or expertise. Aspects of the day to day operations could also be outsourced to a reliable and experienced virtual assistant.

 

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

 

List of Assets

 

  • Brand assets

  • Contracts (written or verbal) with customers and suppliers

  • Customer databases

  • Domains

  • Hosting accounts

  • Marketing materials and collateral

  • Policy and Process documents

  • Relevant email accounts

  • Social media accounts

    • Facebook: 25K followers

    • Instagram: 25K followers

  • Vendor contacts

  • Website files, source code and content

  • e-Commerce platform accounts

  • LinkedIn Social Icon
  • Instagram Social Icon

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