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Potential of millions! Over €15,000 only four days after launch!

URL: Privat
First mover in the DACH region// VERY promising shop. No competition

Description

Project Type: E-Commerce
Income Source: Physical Products
Platform: Shopify
Good day, 

We are selling one of our new web shops. 

The shop is being sold because one of the managing directors needs a reorientation and wants to withdraw from the e-commerce business. In order to bring in new structures and to have a clean new start, we want to sell previous assets. 

The offered webshop was launched respectively published on 10.11.22. 

So far, after more than 25 successful shops, we have never had such a successful start!
It is a shop in the gift niche. 

The main traffic source is TikTok Ads. In addition, there is a small amount of traffic via a Google Ad Search Campaign. 

The shop has already turned over more than 15,000€ after four days. 
Day 1: approx. 440€Â 
Day 2: approx. 4100€Â 
Day 3: approx. 4500€Â 
Day 4: approx. 6000€Â 

Despite the very aggressive advertising strategy, the shop was able to achieve a ROAS of over 3.3, even with these high sales right from the start. 

Overall, the shop was then scaled somewhat more slowly in order to avoid delivery problems during the Christmas season. Our estimates and calculations based on the first days tell us that the webshop would have generated a turnover in the range of about 200,000€ in the first month, without considering the supply chain. 

With an advertising spend of just under 11,000€ in the first 30 days, and an exceptional AOV of over 120€, a turnover of around 45,000€ was achieved in the first month - a very good ROAS of over 4! 

In the following two weeks, the scaling was a little less aggressive - 14,000€ turnover with 2,000€ advertising spend - a very respectable ROAS of 7! 

The product costs amounted to approx. 18,100€.

In the first month, the shop generated a gross profit of about 13,000€. 
After that, there were still some organic purchases. 


Shortly before Christmas, the shop was paused. There were difficulties with the supplier at the time. Fortunately, we got in touch with a very diligent agent who was able to initiate a cooperation with a manufacturer who normally does not work internationally. As far as we know, there are no other (reliable) suppliers.

In order not to run into delivery problems again, we first tested the new supplier for a month. In doing so, we turned over about 30,000€ in one month. The profit after all costs and VAT was just over 6,500€ (see P&L Sheet). For the period in which the shop was advertised, we achieved an average monthly net profit of 9500€.

The product is a personalised gift item. 
Production times are 6 - 8 working days - followed by fast shipping times of 3 - 6 working days. 


 Unique Selling Points of the project: 
- First Mover Advantage -> practically no competition in the DACH market yet. 
- Personalised gifts -> high margins 
- Personalised gift item -> cancellation & returns legally excluded 
- Exclusive cooperation with the supplier -> new customers are not accepted because he has no capacity. There are probably no other (reliable) suppliers/manufacturers for this product in the whole of China. 
- So far only use of UGC ads -> creating own promotional material would probably improve sales and margins significantly. 
- Virtually exclusively marketing via TikTok -> great potential for other platforms. 
- Unusual variant of the dropshipping model -> products are only made after receipt of order; accordingly, our customers understand the delivery times.


The industry-standard multiplier for determining value is 35x in the dropshipping sector (see Empire Flippers/ largest American marketplace for online shops). The average monthly profit (with a lot of room for improvement) is €9,500. With the usual multiplier, an evaluation of 332,500€ can therefore be estimated. Due to personal differences between the two founders, it is important to us that the sale/purchase happens as soon as possible, which is why we are open to realistic offers.

Edit: As we already have some interested parties on other platforms, we cannot guarantee that the project will be for sale by next week. We recommend that if you are interested, you make a Zoom appointment as soon as possible. We try to keep all meetings within a week and then decide on the most suitable buyer.

Category

E-Commerce

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qendrim

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Seller: qendrim
Published on:29.03.2023
Seller last active:two weeks ago

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