DropShipFoods

https://dropshipfoods.myshopify.com

BUSINESS FOR SALE DropShipFoods is a fictional brand that represents an active, existing business for sale in Ontario. A fictional brand was created to protect customers and vendors during the sales process. The actual company will be revealed to potential buyers that express interest and ability to complete the acquisition with NDA. Contact jayditrich@gmail.com Overview Price: $660,000 Trailing 12 months: $580,000 revenue with $220,000 gross profit Approximately $500/month in fixed overhead (servers+subscriptions) Average 47% Year-Over-Year Growth Consumer packaged goods and foods = “recession proof” Sales exclusively to Canadian market Average 1 hour/day of administrative work (phone+email) Business can be relocated - No employees, leases or contracts Diversified customer base 95% B2C Stream of new customers from automated Marketing programs 11,000+ customer database with 300+ new customers each month Existing demand for new product lines to current customer base WHO IS THIS FOR The most difficult part of starting a business is the uncertainty - how do you know if your unique offer is actually what customers are looking for? What's the best business model? Who are your competitors? Which marketing and advertising channels are worth investing in? Will all your up front investment pay off? All the initial set up is something you're never compensated for, and many one-off decisions or tasks such as branding setup and selecting the best e-commerce platform can take days or weeks but have no bearing on the day-to-day running of the business. A better solution for most would-be business owners is to buy an existing business. An existing business has all the difficult, uncertain questions answered and validated in the most important way - sales and profit. Existing business data allows for greater certainty in making decisions about where to direct your time and energy. Knowing which market and customer segments are most profitable can only be done retrospectively - while business plans and market research are key to starting a business from scratch, the only reliable information is what comes from the market in the real world. Using this real world data, you can focus on growing profitable markets and leaving unprofitable ones. This data is generated in troves and easily accessible in e-commerce businesses, making them ideal for anyone serious about running a company. To prevent being overburdened with the myriad of tasks involved in running a business, choosing one with a simple model and low owner-involvement leaves you with time to focus on the areas that you're strong in, which is what makes dropshipping businesses so attractive. Dropshipping businesses are simpler to run than full businesses, requiring less administrative work than running a company from A-Z. Some margin is given up to the fulfillment partner, however their experience and expertise typically means that they can do things much more efficiently and less expensively than you can on your own. Some of the most difficult aspects are handed off, such as: Payroll and HR / employees Inventory tracking and ordering from suppliers Inventory financing Order packing, manual labour, equipment and facility maintenance/cleaning With these routine, low-skill tasks that don't present strong competitive advantages taken care of, the owner is free to work on high-value tasks such as sales, marketing, customer advocacy, branding, forming partnerships exploring new opportunities. Ultimately, the business can be converted to in-house all the tasks the fulfillment partner takes care of when there's a compelling reason for it. Taking on a commercial lease, financing inventory, hiring workers and operations is much easier with predictable sales and cash flow. Alternatively, a business with established processes and low owner-involvement means the owner is free be absent from the business - able to focus on a full time career or travel abroad. In special cases such as DropShipFoods: travel to certain parts of the world may be a business expense as you "search for new products to import" and "form partnerships" visiting trendy new restaurants becomes "market research" and a "sales expense" potential vendors send free full-size samples of new and exotic foods for you "evaluate" E-Commerce Theory While an average can be presented for the business as a whole, it’s important to realize that each product line and geographic area can be viewed as independent business units that make more sense when considered in isolation. Doing so allows for better decisions about where to focus efforts. Eg. Product lines manufactured in-house and sold within Ontario and Quebec have 2x-4x the profit of imported products sold to the west coast. Sales to the west coast increase overall product turnover and while not wildly profitable, still justify the effort when considering increased volume discounts that decreases costs in profitable markets for product costs, shipping costs, transaction fees and the additional data generated. Reason for Selling Owner is interested in pursuing other interests. Questions? I'd love to answer them and update this page as needed, send an inquiry at jayditrich@gmail.com Q&A Q: Can this be relocated to ________ in Canada?A: This is a dropshipping business - it can be run from anywhere in the world, including third world countries - as long as you have internet access. Even dial up internet access. Technically, even just on a smartphone. Q: How long has this business been active?A: Over 4 years, however there's over a decade of ecommerce experience behind that - there was a significant knowledge base from the start. Q: Will you offer vendor buy-back/financing?A: No. Customer data, marketing/sales data and operating procedures are competitive advantages that can not be re-secured once disclosed to the buyer. This business has been reasonably priced on a cash flow basis. Q: How much warehouse space is required?80% of the products can fit comfortably in 1400 square feet with proper industrial racks. Another 20% is manufactured in-house and requires specialized equipment and is better left to a specialist company to fulfill. Q: What are the products?A: That can't be disclosed without revealing too much information, and is hidden to protect customers and the future owner. It will only be shared with people who are qualified over email. Q: How many products are there?A: There are over 600 products, spread over about a dozen brands/lines. Q: What are some ways to grow the business quickly?A: We regularly survey customers for products they want us to carry that we don't (1400 responses to date), and there are multiple suppliers that can be tapped to bring those products in. There are a number of product lines the website ranks well for that aren't currently stocked. Based on our other product lines, I would estimate another $100k in sales for bringing in about 150 SKUs.

Category: Business & Industrial

City: Toronto

State: Ontario

Country: Canada (CA)

Currency : CAD

Platform: Shopify

Technologies used: Cloudflare CDN

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