Pet Brand

VALUATION

$150,000

1. Years and Months Operating: 3 years and 8 months 
2. Reason for Sale: We have a portfolio of ecommerce stores which we own and manage ourselves. This business is ready to be taken to the next level and has so much potential, particularly in terms of easily adding new traffic sources and optimising the site
3. Average Monthly Revenue: $5532 AUD 
4. Trailing 12 Months Revenue: $251,427 AUD 
5. Trailing 12 Months Net Profit: $66,392 AUD
6. Last Months Revenue: $12565 AUD
7. Last Months Net Profit: $5220 AUD
8. Average Monthly Net Profit Margin: 26%, 41% May
9. Marketing Methods: Our primary traffic source since launch has been Google PPC, and we have more or less only targeted keywords related to our hero product. We have not leveraged any organic or paid social media growth, influencer marketing, email marketing or SEO optimisation strategies in this time, leaving enormous room for the new owner to grow the store and the UDG brand. The site was built with basic on page SEO principles which has driven some organic sales and allowed the site to rank relatively well, but again still has plenty of room to grow.
10. Contracts and Registrations: Registration of the business name 
11. Email List Size: 6809 (customers)
12. Product SKUs: Approximately 100 SKUs (1 main hero product)
13. Physical Inventory On Hand: Nil 
14. Future Business Opportunities: We believe there is a significant opportunity for the new owner to grow this business in several ways:

1. Social media platforms, both organic & paid traffic, influencer marketing,  the dog niche is a very loyal and passionate audience. 
2. There is a significant opportunity for an SEO-er to grow the site’s organic rankings and remove the dependency on paid traffic, thereby increasing the site’s profitability significantly. We have laid the foundations for good SEO, with some basic on-page work, and with the site’s age, it is very well positioned to rank well with Google with some more content, backlinks, and some outreach.
3. If the new owner had a product of their own that they wanted to promote, or wanted to build the site out further (even utilising existing suppliers) the brand name (and domain name) is broad enough to add in other dog-related products
4. All Google PPC has focussed exclusively on the hero product; even adding in campaigns focussed on other existing SKUs will see an immediate jump in sales
5. Importing the hero product in larger (more cost-effective) quantities and shipping either traditionally or through a 3PL (see more in the questionnaire regarding the business model)
6. New owner could also better leverage email marketing campaigns to increase CLTV, optimise abandoned cart flows, add a post-purchase review system, focus on store upsells. Possibility to distribute the hero product internationally or via other online marketplaces

15. Supplier Operations and Relationship Description: To fulfil orders, we export a spreadsheet of all recent orders from the backend of WooCommerce and collate orders to be sent through to the relevant supplier. Around 80% of products ordered are for one product so these orders are formatted and downloaded in a CSV file which is emailed through to this supplier. Orders for any other SKUs are then placed, either via email with the relevant supplier or via their relevant marketplace listing. We have worked with our main supplier for several years now and have a wonderful working relationship. Our sales representative promptly processes and dispatches our orders. Any issues such as a delay in transit, or a product lost in transit, or an issue with the product itself, are promptly resolved at the supplier’s cost. 

16. Owner time required to run business per week: Currently, we spend around 1-2 hours a week placing and processing orders, and around a total of 1 hour a week replying to customer enquiries. We spend a few hours each month checking on our Google ads account and optimising our campaigns where we can. All of these tasks could be outsourced.

17. Employees and people working around the business: To date, we have managed all customer service and traffic generation on our own on a very part time basis. 

18. Delivery time of products: Approximately 3-7 business days 

19. Supply Structure:  All products are currently dropshipped from Australian suppliers, directly to our customers. We have had very few issues with supply of our products since our launch almost 4 years ago and we continue to maintain excellent relationships with our suppliers who remain transparent and ensure a consistent supply of inventory. 

20. AOV: $82.30 over the lifetime of the store

21. Chargeback Rate: We have not had any chargebacks for this site during its lifetime.