Selling Dropship store in hot selling niche earning average of $5,000/mo

Thank you for your interest in my site. My name is Michelle. I work in the ecommerce industry as a site producer for a major hotel chain here in the Dallas/Fort Worth, Texas area. As a side business, I develop niche sites for my self or to resell.

GamersSeat.com is a 5 month old dropshipping store, earning an average of $5,000 per month in revenue as a retailer of hot selling luxury gaming chairs. I am only asking for 1 month of revenue.

Quick Facts About The Site:

• The site is in the gaming niche.
• Hot selling product
  
• The site is only 5 months old (Launched 2/2/2016)
  
• The site is averaging $5000 per month in revenue.
• Operating at approximately a $100 per month net loss
  
• The site has produced over $25,000 in total revenue
• The average sale is $300
• The markup for the top selling supplier is 15%
• The top selling supplier represents about 95% of total sales
• The top selling supplier offers free shipping
• The top selling supplier enforces MAP pricing
• The domain was registered on Godaddy for 1yr
• The store is hosted on Shopify
• U.S. based store and suppliers
  
• Selling the site for only 1 month revenue

Why The Loss?

The net loss is due to the PLA ad expenditure, which can be turned off to focus on SEO or social media, but I recommend keeping ads on for the following reason...

With the accumulated PLA data, I have gotten a strong start in optimizing the high converting brand specific PLA ad campaign with hundreds of negative keywords and have since turned off the poor converting generic PLA campaign.

Within the last month, I also implemented a search ad strategy that has an all time 14% CTR for a campaign composed of keywords with extremely strong buyers intent. With a sensible daily budget, the buyer is in a very good position, to be profitable from month 1 by maintaining the existing campaigns.

If you'd prefer to focus on free advertising then you can simply turn off Google PLA ads. I am spending a minimum of $500 per month on PLA ads; so if you turn ads off and replace with free traffic then you stand to make at least $500 in profit since that expense is now eliminated.

I personally like PLA because it's quick and easy traffic verses seo and social media, which involves more time commitment and has to be built up over time.

Why I Am Selling:

I am selling because I have recently started another site selling a product I am more passionate about, and the main supplier for the site I am selling has recently changed their policy to require a minimum deposit for cost of goods of $1000. Once the fund is depleted by cost of goods sold it must be reinvested by making another deposit.

Although the turnover for a $1000 worth of product is currently about a week, the 3-day delay for Shopify payments to hit my bank account presents a cash flow strain for me, while trying to get another store off the ground.

Website Features/Installed Apps

• Yotpo: Automatically sends follow-up emails and encourages customers to leave a review
• Klavio: Email Marketing automatically sends abandoned cart emails
• Google Shopping: Automatically submits products to Google Shopping
• Tawk.TO: Live Chat w/ Mobile App
• Delete All Images: Allows you to easily delete all images for a product instead of having to do it one by one
• Alt Text: Automatically ads alt text to product images for SEO boost
• Related Blog Posts: Adds a link at the bottom of Shopify blog to other post for SEO boost
• What Other People Bought: Recent purchases popup for social proof
• Grow Email: Email Popup & Exit Intent Popup

Included Accounts

I will turn over all of the following accounts. Any accounts requiring a credit card will be replaced with a low balance pre-paid credit card as a placeholder until you can add your own cc info.

• Google (All Products)
• Facebook
• Twitter
• Pinterest
• Shopify
• Mailchimp

Time Committment

I only spend about 10 minutes a day placing dropship orders with suppliers when there is a sale. Any other time spent working on the store is completely optional.


SWOT ANALYSIS

Strengths

The $1000 deposit requirement for future cost of goods sold is a barrier to entry to other potential competitors not willing to prepay funds.

Also, there are very few competitors promoting this brand via PLA ads, so clicks are cheap (between 20 and 50 cents).

Weaknesses

The top selling supplier represents about 95% of the sales for the main product type and there are no serious competing products to diversify for the product type.

Opportunities

Related Products: While there are no serious opportunities for suppliers of the main product type, there are additional revenue opportunities selling related products such as chair mats and gaming accessories such as controllers, gaming glasses, video games, gaming mouses, etc.

SEO: There is additional opportunity for someone who is willing to invest more time in SEO, which I have not done. This will allow you to scale back on paid advertising and grow profit from existing product sales.

Youtuber Outreach: There are a ton of Youtubers promoting these chairs for free. There is an opportunity to start an affiliate program and reach out to some of these Youtubers to get them to promote your site for a small commission. Or if you don't want to launch an affiliate program you can simply give them a discount code to offer as a gift to their subscribers. Many will do it just to offer value to their subscriber base!

Social Media Marketing: I have done very little social media. This product is very shareable and a social marketing background will present even more opportunity for growth.

Renegotiation: Finally, now that I have established a sales history with the top supplier, you can reach out to them and negotiate a bigger margin.

Threats

The existing PLA competitors are big players in the online space. There pockets will likely reach further than yours should there be a bidding war, which hasn't happened yet thanks to the low number of competitors.

Why This Is A Good Deal

This is a young site, in a hot niche, that has gotten off to a pretty good start for only being in business a few months. Imagine what you can do with a little elbow grease. If you think you can take this site to the next level, place your bid now!

If you know anything about website sales, you know that you would typically pay 6-12 months of revenue for a site. However, I am selling at a huge discount. This is your chance to pickup a fully developed business with a strong history of revenue after just 5 months at a steep discount. It is perfect for to hold or flip.

I am happy to answer any questions you may have via instant message or you can even reach out to me via the store's live chat for more immediate response (assuming I am not sleep).

I am also happy to do a screenshare walk through of the back end of the store to show proof of transactional history. You are dealing with an honest seller here and I've got nothing to hide. Looking forward to doing a deal together!

 

Are you still selling this? Can you PM more info ?