Platform: Amazon FBA Business Model: eCommerce Business Age: 3 Years Sell Price: $160,000
EZTool sells watch repair kits via Amazon FBA. They’ve tapped into a niche and the growing direct-to-consumer FBA space. The search power and logistics capability of Amazon has helped them to find a sweet spot. The product is simple and suits the home watch enthusiast! This month EZ Tool Founder Angus Hess successfully found a buyer and has recently completed the sale on Flippa.
What is the product?
EZTool sells two different watch repair kits. Kit one is more conclusive with a wrench and illustrated manual and kit two – the QuickFixxer – is a 16 piece tool kit.
What makes EZTool such a good business?
There’s really two things. Firstly, it’s found a path to popularity in a niche. The product is well supported by a 41 page illustrated guidebook and comes with a 100-day replacement guarantee (nothing like a guarantee to woo customers). Secondly, they’ve successfully leverage Amazon FBA and benefit from cost-effective shipping, storage and world class customer service.
Who is the EZTool customer?
There best selling kit is perfect for watch enthusiasts and connoisseurs alike. Aimed at those who enjoy DIY as well as those looking to save money on pricey jewellers fees the EZTool products sell steadily all year round. And, they’ve found their kits have become very popular gifts.
Why was it so appealing?
Easy to understand this product had significant interest among the Flippa buyer community. Couple that widespread appeal with the FBA model, the strong consumer feedback scores and strong financial results – EZTool was generating between $5-14k profit monthly, which is in part due to low time commitment – and you have a winner.
How did Flippa assist?
The Flippa model has evolved and it’s beginning to suit higher value buyers. That alone is a big win. Flippa now has over 150,000 registered buyers representing a combined purse of over $9bn wanting to be placed. There are not enough sellers. Once they pop up, sellers like EZTool are benefited from the self-service platform, lower success fees than other channels and dedicated account management.
This week we spoke with Madeleine Saric, owner of Dubleup business which is currently for sale on Flippa. Here are some highlights from our conversation with her.
Can you introduce us to Dubleup and tell us how it all got started?
So Dubleup is on an online e-commerce platform and we sell tech accessories for Apple and Android products, phones, tablets, watches. Everything is on there that you can imagine, from power banks to cables and cases. The list goes on.
Your top seller is the credit card power bank charger, so tell us a little bit more about this?
I developed the worlds smallest power bank. It is the size of a credit card and fits into the credit card slot of your wallet. It is essentially designed to give that extra bit of charge for when you are out. That was the idea behind it, I did travel a lot and didn’t need the chunky power bank, I just needed a little bit of extra charge.
Let’s us back up a little bit, who are you and how did all of this come about?
I’m Madeline Saric and this came about when I was doing an internship overseas and the boss I had told me, ‘start something when you are young and you won’t regret it’. So I came back to Australia and whilst I was still studying I came up with the designs for the power bank. Working at Apple, I came to understand what consumers wanted and what was missing from the market. This is what led to the evolution of Dubleup and this small power bank. From there I started working with teams in China, R&D and engineers and coming up with the final product which is the power bank.
Approximately how many units of this product have you sold into the market?
Apple and Android combined we have sold tens of thousands. Apple is obviously a lot more successful and we have Apple certification as well so it is approved by Apple and supports any products that they sell.
Looking at your business, what is there for a potential buyer to take over?
At the moment most of the operations are outsourced, marketing, production, manufacturing etc. You as a purchaser for the business would just simply use your laptop and your phone to run the business. Everything is produced and manufactured in China. It’s a very self-sustaining business with a huge opportunity for growth in terms of building new products and investing in marketing to grow the business. You could get the product into brick and water stores and also grow the online store
Do you own the brand and have the ability to continue with manufacturing in China?
Yes and definitely.
Why are you selling Dubleup?
The first reason is that I wanted to build a business, get it to a stage where I could sell it and differentiate myself from other people. The second reason is I’m a firm believer in doing something that you absolutely love and are passionate about and as much as I love technology, I’ve lost the passion for it.
Madeleine Saric is the founder of eCommerce electronics business Dubleup, which is currently for sale on Flippa.
Today we’re handing the blog over to Jerry Banfield. Jerry is an entrepreneur and teacher who has coached over 80,000 students on everything from Facebook marketing through to time management and productivity.
Last year Jerry built and sold a profitable site on Flippa for $5,500 with no experience and the best part is, he’s put together a step-by-step Udemy Course to share the details on exactly how he did it. Usually $199 – for a limited time, Jerry has dropped the price down to just $25 for all Flippa users. Simply use coupon code: FLIPPABLOG or THIS LINK.
Over to Jerry:
If you are trying to sell your website on Flippa, knowing what works to make a sale can save you a lot of frustration and money. The first two times I posted websites for sale on Flippa, I made my listings and then tried to promote them in complete ignorance of what other sellers were already doing right. No one bid on any of my listings…
When I went to relist my website again, I realized it was crazy to do the same thing I did before and expect different results. For the next few weeks prior to launching another listing, I researched the Flippa marketplace to see what websites were already selling so that I could discover what they all had in common. I found websites that had sold for at least a thousand dollars almost always showed solid proof of income and had verified Google analytics. I also discovered what price to start the bidding at, how to write a compelling listing to attract watchers, how to directly contact potential buyers, how to convert people watching to bids, why every question was worth answering in great detail, and what I needed to do to make it easy to close the auction successfully.
When I used what I learned to launch a new listing on Flippa, the same website that did not attract even one bid when I listed it before sold for $5,500.
You can skip the painful learning process I went through to learn how to sell on Flippa when you take this course. You can see what your website is really worth when you list it the way I listed mine. This course will continue to be useful for you through any improvements Flippa makes because what I teach is based on principles that you can adapt to what you are doing today. You can count on me to answer any questions you have in the course and to add new lectures based on your feedback! Thank you for reading this and I appreciate the chance to serve you as your instructor in this course.
Bitcoin is a virtual currency founded in 2009 by the mythic Satoshi Nakamoto.
It is a cryptocurrency, verifying transactions with the same state-of-the-art encryption used in military and government applications.
Recently featured in Forbes magazine as a sort of a wake-up call to the U.S. Government and Federal Reserve Bank, Bitcoin is now recognized as a legal form of private currency in Germany.
While accepting alternative currencies statistically increases the number of potential clients, Bitcoin in particular provides a number of additional advantages, making them a top choice for ecommerce websites. Alternative currencies bring alternative-minded, often tech-oriented clients who tend to be an impressively loyal group.
So, what can this virtual currency teach us about improving our own website? And is it worth adopting?
1. Involve Your Audience
Bitcoin is an open-source project, which has no official organization. Instead it is led by a vibrant and active Bitcoin community. Members exchange innovative ideas and discuss technical fixes in places like Bitcointalk and Reddit.
If you provide your customers with an outlet and serve them well, you will soon earn their friends, peers, and customers as clients of your own through word of mouth.
Bitcoin takeaway: How do you involve readers at your site? Is there a way you can get them more involved?
2. Leverage the Myth
Having a legend also helps. People are drawn to stories and love to solve a mystery.
The Bitcoin founder Satoshi Nakamoto has spurred a lot of discussion. With a name like Nakamoto, a Japanese auto magnate or female Muy Thai kickboxer might come to mind. But if you do a quick Google search, you’ll discover there are no photos of Satoshi, male or female.
Satoshi Nakamoto is more myth than mythical, but no one can seem to prove it one way or the other. There’s even a website featuring real gambling (SatoshiDice.com), supposedly founded by Nakamoto that sold for $11.5 million dollars (the sale itself is definitely verifiable).
With all this mystery and intrigue, it’s fair to ponder whether or not joining the Bitcoin brigade is financially viable.
Bitcoin takeaway: What’s the story behind your site? Is there a way you can add more mystery or intrigue to get more people talking about you?
3. It’s All about the Exchange
A consideration when accepting alternative currencies is how that currency may be exchanged for standard national currencies such as the U.S. dollar and the Euro. A number of services exist and are being created that exchange Bitcoin for other centralized currencies, with Mt. Gox currently dominating the market with over 80% of the Bitcoin-U.S. dollar exchanges (as of April 2013).
Accepting over 70% of all global currencies, Mt. Gox opens the door to international exchange previously closed to many small businesses. Bitcoin’s fees are considerably lower than institutions processing US dollar transactions, shaving operating costs and enabling local and online businesses to compete with mega-distribution centers and foreign online sales. Mt. Gox has an app so you can do all of this on your smartphone which can be found at m.mtgox.com.
Bitcoin takeaway: Your website doesn’t exist in a vacuum. Who could you partner or co-operate with to create new business opportunities? It’s all about the exchange!
4. Remember the Value
The value of Bitcoins has been designed to always increase, through scarcity and other key economic factors. They are, however, prone to market fluctuations, too.
BitcoinCharts is one service that provides financial and technical data for the Bitcoin network. Exchange rates for the US Dollar, Euro, Chinese Yuan, and many other standard currencies are available with one Bitcoin worth $113 USD at the time of this writing.
“No chargebacks” would be music to any online merchant’s ears, and might seem impossible. But with Bitcoin, there are no chargebacks. Due to the decentralized design and their crypto-security system which includes components such as block chains, miners, and private keys, the system operates without the need for users to make transactions, and then renegotiate.
Because those that use the currency are in essence their own bank, there is no “middle man” to execute chargebacks. According to CoinBase, essentially the PayPal of the Bitcoin world, there is virtually no waiting for Bitcoin transactions, stating that transactions arrive at about the speed of an email.
Bitcoin takeaway: What are the benefits of using your website? How can you add more value to your readers?
5. Be Aware of the Risks
There’s clearly a myriad of benefits in accepting alternative currencies like Bitcoin, but are their risks?
The short answer is always yes, but there are inherent risks in running any form of business accepting any form of payment. These days, it’s excessively easy to add a currency like Bitcoin to your payment options, with very few drawbacks. The Bitcoin community is especially tightknit and loyal, so becoming an early adopter to this currency could engender sincere loyalty within that user base.
Diversification is also almost always a good business tactic, and since Bitcoin transaction and conversion fees are so ridiculously low, it makes loads of sense to give it a go and accept it as payment.
Bitcoin takeaway: What risks do you ask from your readers on your website? How can you reduce that risk by offering more ways for your readers to take action?
Over to You
How great is it that we live in such a virtually focused world these days, there’s a virtual currency to support our cultural evolution? If you’re a business owner that loves the web, in part because it does represent the cutting edge of future technological advances, it’s time to start accepting virtual currencies like Bitcoin.
Do you use Bitcoin in your business? Please let us know your thoughts in the comments!
Today’s blog post is by Mark Collier of DropMining.com. I love his insights into Flippa’s sales data, and hope you appreciate it as well!
Over the last several months I’ve been busy annoying the Flippa tech team gathering data on over 6,500 Flippa sales as part of a comprehensive study to determine what influences the value of a website and it’s sale price on Flippa.
My core goal was to develop a reliable website valuation model but additionally I wanted to delve into the data and answer some of the questions you might have about website flipping and selling on Flippa in general.
Note: this study was independent of Flippa, in fact they weren’t even aware I was conducting it and thus all findings are my own.
I looked at 52 potential influencers of a website’s sale price; mostly the data Flippa provides with their listings as well as some of my own.
I used a statistical analysis technique known as multiple linear regression to determine which of the 52 metrics of a website’s value are statistically significant influencers and which aren’t important.
The key thing to remember about regression is that it isolates each influencer and determines what the increase in a website’s sale price would be if you increased that influencer by one unit e.g. adding $1 to monthly net profit without changing any other metrics for example by cutting costs will likely increase the sale price of your listing by $3.50
It’s pretty easy to buy into a lot of the hype regarding what you can do to a website to make it more valuable.
But a lot of it is just that – hype.
Only 18 of the 52 metrics often used to measure a website’s value are actually statistically significant influencers.
That means that if you spend time and money improving on the other 34 metrics you will likely see no increase in your listing’s sale price.
Take a look at the below graph which shows the importance of the most influential metrics.
Importance is measured through a combination of both the amount a one unit increase will cause the sale price to rise by and the how what scale the metric can be increased to.
For example many Flippa upgrades cause a pretty large increase in sale price, but with many of them you can only buy them once thus their impact on sale price per unit increase might be quite large but the data only shows that metric as having a range of did or didn’t buy.
But while a one dollar increase in monthly profit might not have a massive increase in the sale price, it’s one of the most important metrics because profit can be virtually infinite.
Revenue, profit and traffic are clearly the most important factors influencing the sale price.
Holding everything else constant each dollar increase in monthly revenue and profit will yield a $2 and $3.50 increase in the site’s value respectively.
In practice often two metrics work together, for example a $1 increase in revenue may also lead to a $0.75 increase in net monthly profit thus having a double effect.
Or the number of inbound links to a website may increase the site’s traffic, which increases revenue which in turn increases profit, having a quadruple effect.
If you’re flipping a website, your sole focus should be to increase traffic, revenue and profits in a sustainable manner but with immediate effects.
Any actions that fulfill these criteria will have the maximum positive impact on your listing’s sale price.
I get really excited when data can find clear cut answers to people’s questions.
Interestingly uploading Google Analytics PDFs of your traffic has little or no effect on a listing’s sale price.
While I didn’t have sufficient data to study all of Flippa’s upgrades I did study their screenshot, bold, highlighted and premium upgrades.
Each of the first three upgrades which cost $20, $5 and $10 respectively will likely increase the sale price of your listing by over $500.
While the data is less clear whether using the three in combination will be as effective due to the large margin of error I can highly recommend using each of these Flippa upgrades for what will be an easy win.
Very few people use the $250 premium website listing and as such the data is insufficient to render a concrete judgement, but nonetheless from the available data I would estimate that this upgrade will likely add between $6,500 and $10,000 to the sale price of a listing.
These were probably to two most interesting areas in the study but I also analysed the importance of domains, what listing types do best and more.
Mark Collier is the founder of DropMining.com, a soon to be launched start-up in the expiring domain space, offering premium data on 200,000 daily expiring domains. You can catch more of his data based posts on his blog.