I am selling my ecommerce Shopify business for $77,950.
This is a 2.3x valuation ($66,900) of the company plus ~$19000 of inventory valued at a discounted amount of $11,050.
I am going to be very transparent about this business, so ask any questions you want. If it doesn't sell by January 31, I am taking it off the market. This is because I believe a buyer needs to be in place by February 1 for the buyer to be able to take full advantage of the Spring season upswing, which really starts to take off in February (see revenue chart at bottom).
Business Overview: This is a 7-year-old established Ecommerce business with a niche in American-made cut-to-order mosquito netting that is bigger than anything on Amazon and MUCH better quality than anything on Amazon. These nets are as big as 12 ft x 200 ft.
For the past 3 years, I have been working full-time for biophase and then running this business in the mornings before work and sometimes in the evening after work. I occasionally work on it on the weekends. This is a business that most people could run while still working full-time or part-time if they want to.
98% of orders are through the Shopify website and most traffic is organic. Paid traffic for 2018 and 2019 combined was $4213.35 and SEO expenditure for 2018 and 2019 was $0.00. Average order is over $100 and average profit margin after credit card fees, shipping costs and COGS is 49.40%. Add website expenses, storage costs, and advertising and the profit margin is still a healthy 42.29% profit margin.
By the Numbers
Sales
Average Order Value: $112.40
2018 Revenue: $64,451.24
2018 Profit: $24,422.06
2018 Profit Margin: 37.89%
2019 Total Revenue: $68,631.33
2019 Expenses Breakdown:
Credit Card Fees: $1,929.81
Cost of Goods (including delivery to warehouse): $20,568.08
Packaging: $640.46
Order fulfillment/total shipping costs: $8,086.18
Advertising: $3,035.32
Warehouse: $4,339.79
Website Hosting and apps: $1,010.64
2019 Profit after All Expenses: $29.020.72
Profit Margin: 42.29%
Profit margin increased in 2019 because I increased prices, I optimized shipping services to reduce shipping costs, and I reduced warehouse expenses as much as possible. For someone with a warehouse or 2-car garage, removing that expense alone would increase profits about $4k/year.
Website Traffic
2019 Online store sessions: 43,089
2019 Online store visitors: 39,320
Online store sessions by traffic source
Search: 25,540
Direct: 16,073
Unknown: 780
Social 631
Email 65
Organic Google search makes up most of my traffic. The site ranks on page 1 for all relevant keywords, primarily due to the age of the product pages.
Miscellaneous Info
This business is primarily a summer business, with about 66% of sales between April 1 and July 30.
Employees required: no
Daily hours required: 2 to 3 in summer, 0 to 1 in off-season (October to mid-February)
Space required: I store everything in a 170 sq ft space. A 2 car garage and driveway is ideal. Warehouse space would be a bonus, but not required.
Physical ability: able to lift up to 70 lbs (most of the time, less than 40 lbs), ability to bend, kneel, etc.
95% of the products sold are made in the USA. There is one primary competitor (MosquitoCurtains.com) that sells the exact same products at a much higher price point because they have much higher overhead costs with a big building and many employees.
Cool facts:
In 2017, my business cell rang while I was taking a shit in my bathroom. I answered anyway. That call ended with a $26,500 dropship order profiting over $10,000 and I never touched any product from that order. That netting ended up going to Puerto Rico for use in the aftermath of Hurricane Maria.
Highest-revenue/profit account is SOCOM. They were my very first real customer in 2012, ordering 28 tents from me. Since then, I have supplied all 8 SEAL teams with large mosquito netting panels. I don't ask what they use them for. Lol.
Revenue and Profit Chart
Below is a monthly chart of revenue and profit. Profit margins are higher this year because I increased prices 10% and optimized shipping services to reduce shipping costs.
This is a 2.3x valuation ($66,900) of the company plus ~$19000 of inventory valued at a discounted amount of $11,050.
I am going to be very transparent about this business, so ask any questions you want. If it doesn't sell by January 31, I am taking it off the market. This is because I believe a buyer needs to be in place by February 1 for the buyer to be able to take full advantage of the Spring season upswing, which really starts to take off in February (see revenue chart at bottom).
Business Overview: This is a 7-year-old established Ecommerce business with a niche in American-made cut-to-order mosquito netting that is bigger than anything on Amazon and MUCH better quality than anything on Amazon. These nets are as big as 12 ft x 200 ft.
For the past 3 years, I have been working full-time for biophase and then running this business in the mornings before work and sometimes in the evening after work. I occasionally work on it on the weekends. This is a business that most people could run while still working full-time or part-time if they want to.
98% of orders are through the Shopify website and most traffic is organic. Paid traffic for 2018 and 2019 combined was $4213.35 and SEO expenditure for 2018 and 2019 was $0.00. Average order is over $100 and average profit margin after credit card fees, shipping costs and COGS is 49.40%. Add website expenses, storage costs, and advertising and the profit margin is still a healthy 42.29% profit margin.
By the Numbers
Sales
Average Order Value: $112.40
2018 Revenue: $64,451.24
2018 Profit: $24,422.06
2018 Profit Margin: 37.89%
2019 Total Revenue: $68,631.33
2019 Expenses Breakdown:
Credit Card Fees: $1,929.81
Cost of Goods (including delivery to warehouse): $20,568.08
Packaging: $640.46
Order fulfillment/total shipping costs: $8,086.18
Advertising: $3,035.32
Warehouse: $4,339.79
Website Hosting and apps: $1,010.64
2019 Profit after All Expenses: $29.020.72
Profit Margin: 42.29%
Profit margin increased in 2019 because I increased prices, I optimized shipping services to reduce shipping costs, and I reduced warehouse expenses as much as possible. For someone with a warehouse or 2-car garage, removing that expense alone would increase profits about $4k/year.
Website Traffic
2019 Online store sessions: 43,089
2019 Online store visitors: 39,320
Online store sessions by traffic source
Search: 25,540
Direct: 16,073
Unknown: 780
Social 631
Email 65
Organic Google search makes up most of my traffic. The site ranks on page 1 for all relevant keywords, primarily due to the age of the product pages.
Miscellaneous Info
This business is primarily a summer business, with about 66% of sales between April 1 and July 30.
Employees required: no
Daily hours required: 2 to 3 in summer, 0 to 1 in off-season (October to mid-February)
Space required: I store everything in a 170 sq ft space. A 2 car garage and driveway is ideal. Warehouse space would be a bonus, but not required.
Physical ability: able to lift up to 70 lbs (most of the time, less than 40 lbs), ability to bend, kneel, etc.
95% of the products sold are made in the USA. There is one primary competitor (MosquitoCurtains.com) that sells the exact same products at a much higher price point because they have much higher overhead costs with a big building and many employees.
Cool facts:
In 2017, my business cell rang while I was taking a shit in my bathroom. I answered anyway. That call ended with a $26,500 dropship order profiting over $10,000 and I never touched any product from that order. That netting ended up going to Puerto Rico for use in the aftermath of Hurricane Maria.
Highest-revenue/profit account is SOCOM. They were my very first real customer in 2012, ordering 28 tents from me. Since then, I have supplied all 8 SEAL teams with large mosquito netting panels. I don't ask what they use them for. Lol.
Revenue and Profit Chart
Below is a monthly chart of revenue and profit. Profit margins are higher this year because I increased prices 10% and optimized shipping services to reduce shipping costs.
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Attachments
Last edited:
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today
