This is the story of an eCommerce store that sold on Flippa for over $32,000 after just two years of being in business. But more than that, it is a story of how to create a highly descriptive listing that entices buyers who are browsing the Flippa marketplace for ripe opportunities.
Looking at the very basics, this is simply a fashion store run over the Shopify platform that targets trendy women in the US and UK between the ages of 18-35. We know this because the listing tells us right up front! We have also instantly learned that it is a drop-shipping store. When browsing eCommerce sites on Flippa, this is one of the most important distinguishing features to let potential buyers know. Is inventory held at a warehouse? Is it paid for up front and shipped by the company itself or are orders sent to a third party who handles the work?
Numbers. Numbers Are The First Step Towards Success.
Then come the numbers. As we talk about in our First Time Sellers Guide, it is critical to include all of your financial information as well as connect your Google Analytics with Flippa in order to find success. Buyers want to see the numbers up front and center, and it certainly helped FashionLike.me that their numbers are phenomenal!
Not only does nearly $8,000 in monthly net profit sound outstanding, but to see fully verified traffic of over 207,000 page views every month as scanned by Google Analytics is just icing on the cake. Plugging in those details was step towards a successful acquisition on Flippa.
This, however, is the easy part of putting a great listing together and finding success on Flippa. The harder part is building a stellar listing description, and they, with the help of a broker, did just that.
The best way to understand just how great this listing was developed is to visit the page itself and read through all of the details.
Front and Center is a Summary of the Business.
FashionLike.Me is a successful and growing Dropshipping store on Shopify. The store sells clothing and apparel targeted at females.
It was built from scratch over a year ago by the owner and has grown significantly getting traffic from a variety of sources, Facebook & Instagram, email marketing, direct and organic traffic (see traffic section for more details).
It makes $7,988.14 profit per month (avg over last 12 months) with a gross profit margin of 64.22% – Suppliers are mostly based in China, but one is from the US
Being a dropshipping business, there is no need to hold inventory in a warehouse, and there is no risk of losing money on unwanted stock.
And this is immediately followed up with a list of incredible highlights including their profit, profit margins, where their drop-shippers are located, how many products they have, how many hours are spent on operations, what sort of marketing has been used in the past, and how many people are on their mailing list.
Then they get into real fun and you should take a look. They include a google doc complete with all of the P&L statements, margins, refund rates, AOV (average order value) and more. They just ask that the potential buyer sends a message to gain access to the doc.
This is an ingenious move for two parts.
1) It gives the buyer an unprecedented amount of information from which they can base the value of the business and,
2) It starts a conversation, and thereby a relationship, between the seller and the potential buyer. This relationship is key to a successful sale as it allows the two parties to talk about the business, dig into the numbers, and form a bond amongst entrepreneurs.
Success Comes From Connection.
Just as important as starting a conversation, this business owner understood the importance of supplying a bit of personal information.
“My name is Oleksandr, I live in Portugal. I’ve been in this market for around 2 years right now. I was studying at a business school but I did not enjoy my course yet I knew I had to do something of my life. The online / internet has always aroused my curiosity, especially the online stores and I decided to dedicate myself to the study of online stores. Over time I realized that I really liked this type of business. I decided to make my job what I like and created this store. The store I created is profitable and stable over months with good history record.”
This is great! Sure, the English isn’t perfect, but that’s no problem at all, after all, we now know that the founder is Portuguese. We know that he went to business school and we know that he is a curious businessman.
People buy from people. We don’t want to purchase something from a faceless entity, we want to do a deal with a real person. While it seems like extraneous information, including these tidbits helps with that human connection and connection leads to a successful sale.
Support, Maintenance, Growth.
Support: The listing for FashionLike.Me goes on to mention that the owner will provide continued support for a month after sale to help the new owner get on their feet. They mention understanding the need to provide a smooth transition and offer to connect the new owner with their Virtual Assistant and more in order to keep the business running smoothly. This provides fantastic peace of mind for a new owner! They won’t just be wading in the deep end, trying to learn everything from scratch.
Maintenance: they run down the list of what is done each month by the owner to keep things running as is. This is just a quick list, but it allows someone to think about the pieces of the puzzle and determine how much time it might take them.
- Fulfill orders
- Customer service enquiries
- Take care of social media
- Update products (add new products, collections…)
- Manage the advertising campaigns
The owner claims this takes around 2 hours per day, and providing the list of daily tasks allows the potential buyer to think about it for themselves. “How much time would this business take me to run?”
Opportunities for Growth: Buyers aren’t typically looking to run things as is. They are looking for a business that they can improve upon. They want something that is already making money, but has the opportunity to make more. FashionLike.me offers 9 different, legitimate ways that the business could be improved upon. Be it affiliate programs, YouTube ads, or even opening a physical location – it gives some ideas and perhaps more importantly, some inspiration to the reader.
Ultimately, this listing could be considered over the top. The amount of information and the detail provided goes above and beyond, but the result was $32,201 in the founder’s bank account and it’s hard to argue with that!