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

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Buy a Business/Baking Tools eCommerce

Baking Tools eCommerce (Shopify)

$25,000.00

Executive Summary

 

Launched in September 2018, this Shopify drop-ship store for baking enthusiasts is only three months old, but has quickly gained traction and experienced strong growth, grossing an average of $9,988 p/mo in sales.

The owner attributes the business' explosive growth to his aggressive marketing strategy and is willing to provide extensive post-sale training and support to ensure all tricks of the trade are fully transferred over to the new owner.

The stores offering (engraved rolling pins) are a great way to add a touch of creativity and uniqueness to baking.

The rolling pins also make for a great gift idea or stocking filler with all orders being processed and fulfilled directly by a supplier based in China.

 

Baking has in recent years become a worldwide phenomenon, from parents seeing it as a great bonding activity to do together with their kids to many people using baking as an activity to help them unwind after a long day/week at work. These rolling pins are the perfect tool to add a hint of creativity to what is already a pastime by millions worldwide.

 

Naturally, there will be a spike during the holiday season, but baking continues to be a popular trend throughout the rest of the year with Google trends showing that although interest does drop after Christmas, it remains high worldwide and in key territories;

 

  • 60 to 70% (worldwide) 

  • 60 to 70% (in the US)

  • 60 to 70% (in the UK)

  • 70 to 80% (in Australia)

 

Additionally, as the rolling pins coming in many different designs, you have the opportunity to benefit from other globally recognised celebrations/events such as Valentine's day and Halloween - The different designs will also increase the chances of repeat customers.

 

Finally, with the right marketing strategy, the store could take advantage of country-specific events such as ‘the Great British Bake-off’ competition which happens every year in the UK and bring along with it another potential spike traffic and sales (in the UK).

 

Highlights

 

Strengths

 

  • The business is new but has already generated almost $30k in revenue and is projected to make over $40,000 in total sales this holiday period.

  • Evergreen Niche

  • Automated business

  • Zero return rate

  • Low time commitment required

  • Simple Drop-ship Model

  • Low-risk business

 

Opportunities

 

  • Expansion into other platforms (e.g. Amazon FBA)

  • Expand product offering

  • Implement other inbound marketing strategies for SEO (e.g. Content marketing (blogs, videos etc.), email marketing)

  • Influencer Marketing

 

Operations

 

Sales for the store are healthy and growing every day. With the holiday season right around the corner, the next few weeks will the best time to scale the ads, establish the brand and grow the business.

 

The business is currently 95% automated with the owner only being required to take care of the following;

 

  1. Customer Support (handled by VA)- 2 to 3 customer queries received per day which is handled by a virtual assistant. General queries include estimated time of delivery and how to take care of the products. 

    The VA is happy to transition along with the business to the new owner at the cost of $200 p/mo.

     

  2. Social Media and Google ad campaigns (2-3 hrs p/wk)- Maintaining ad campaigns and scaling the campaigns as and when required (e.g. during the holiday season) 

    All advertising accounts (e.g. FB pixel account) and ad campaign data will be transferred to the new owner.

 

Packaging

 

The rolling pins carefully packaged in two layers of bubble wrap so that they do not get damaged in transit.

As the business is quite new, the seller has not been able to look into private label packaging yet. However, this is something he is happy to assist you with as he has some experience in this area. He has confirmed that it should only take no longer than a week to create/design and send to the supplier to start using. 

The private label will include care instructions to minimise the number of maintenance queries received
. Furthermore, adding private label packaging will also allow you to easily expand the business and set up an Amazon FBA account.

 

Advertising

 

The seller is currently spending between $4,000 to $5,000 p/mo on advertising and marketing. The marketing costs could be greatly reduced by implementing alternative marketing strategies such as Instagram/influencer marketing and inbound SEO such as adding a blog to the website.

 

Customers

 

Customer profile & segmentation- Majority of the store’s customers are women and pastry/baking enthusiasts who are either purchasing for themselves or as a gift (sometimes both).

 

Customer acquisition- Customers are acquired organically via search engines and word of mouth (customers sharing knowledge of the store with friends and family) as well as social media and Google Ad campaigns.

 

The average CPA is $6 - $10 with 80% of customers always purchasing more than one item.

 

Financials

 

The store's average order value is $42+ and the product’s total cost (including shipping) is $8.5.

 

Net profit of each sale averages $15-20 due of low cost of goods and high average order value.

 

Broker's Notes

 

This storefront presents an opportunity for new and experienced investors searching for an investment that generates consistent and steady passive income with the flexibility of active or passive management. 

 

The day to day operations are 95% automated and the remaining 5% could easily be taken on by the new owner with little prior experience or expertise.

 

The seller has decided to sell the business because him and his team are starting a bigger project and won't be able to keep focusing on or scale the store. 

 

The sale of the store will include 30 days post-sale support and training (if required).

 

List of Assets

 

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

 

  • All sites, domain names and technologies associated with the business (including all textual and graphical content)

  • Transfer of all supplier accounts (or introductions and assistance in setting up new accounts, if applicable)

  • All associated Social Media accounts (FB - 170 followers, Instagram – 379 followers)

  • Mailing list (Mailchimp – 850+ Subscribers)