$8.6K Per Month eCommerce Site in the Equipment Niche
Asking 2.7x annual profit. Comparable Ecommerce businesses sell around 2.4x (1.8 to 3x, 2956 comps). Priced 11% above the median.
- Monthly revenue
- $8,592
- Monthly expenses
- $5,526
- Monthly net profit
- $3,066
- Profit margin
- +36%
- Monetization
- eCommerce
- Niche
- Equipment
- Hours / week
- 2
- Days on market
- 72
Summary
This listing is for an ecommerce business created in 2002 in the industrial equipment niche. The site features a specific tool used by municipalities, industrial sites, and government agencies. The business has been run in a dropship manner, and the Seller has recently transitioned into having the manufacturer hold inventory. The business has been performing well in 2018 and requires minimal work from the Seller. The primary source of traffic is good old fashioned word-of-mouth. This means there are several opportunities for the Buyer to increase traffic as very little marketing has been done by the Seller. Upon buying the business in 2016 the Seller redid the website and updated CAD drawings for the current products. The Seller's only ongoing expenses are professional photos, minor website updates, and design & prototyping of new accessories. *Business was started in 2002 and the current website dates back to June 2004. As the business was bought by the current owner in April 2016, we do not have financial information from before the acquisition. *Though large expenses due to R&D were incurred in Nov & Dec 2017, the Seller believes these will cut down on manufacturing costs and will not be recurring expenses. In any case, this is a benefit to the buyer as the new products are being brought to market this year. *P&L is in cash basis accounting. COGS are normally paid upfront and customers are given 30 days payment terms. *We’ve decided to use a 9-month average of net profit for the valuation because we felt that a 12-month average did not accurately represent the current state of the business.
Reason for sale
The Seller bought this site via a local broker with aspirations of ramping marketing and growing revenue for a turnaround play. As the Seller now has a new day job that is eating all of their time, it's time to sell it. The Seller doesn’t like marketing so they haven’t done any for this site. Passing the site on to someone who is savvy at increasing traffic and marketing would help this business realize it’s potential in the industry.
Traffic, trend, size, and valuation figures here are estimates, not verified by the seller. Always do your own diligence before reaching out or making an offer.