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The Open Book Sale of My $600K eCommerce Store, With Financials

177 点作者 spiredigital超过 11 年前

15 条评论

spiredigital超过 11 年前
Hey all - OP here. I know drop shipping sites tend to illicit some curiosity (as well as a lot of skepticism) online, so I'm happy to answer any questions as honestly as I can here in the comments.
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smoyer超过 11 年前
According to "The Portable MBA", the selling price for a business like this should be about 2X gross profits, so we'd logically expect about four price cuts before someone bites (predicting a sale at $145k).
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chstrcheeto4prz超过 11 年前
The real value in this sale (which the author readily admits) is the organic traffic that he&#x27;ll get from publicizing the sale. Pat Flynn did the same thing with <a href="http://www.smartpassiveincome.com/niche-site-update-new-content/" rel="nofollow">http:&#x2F;&#x2F;www.smartpassiveincome.com&#x2F;niche-site-update-new-cont...</a>. The people reading about how to create niche sites are actually the ones bringing the most value to the author&#x27;s niche site. It&#x27;s a clever model for social seo.
mvkel超过 11 年前
I agree with the other sentiments here on losing the reverse auction. There&#x27;s no need for it; pick a number that&#x27;s objectively fair and leave it at that.<p>I&#x27;m trying to figure out what the incentive would be for anyone to buy this, let alone folks in HN-type circles.<p>Yes, technically it&#x27;s an ecommerce business, but with wages and salaries (outside of the general part-time site administrator) being non-existent, I don&#x27;t see how it can stay afloat. You allocated a portion of the shared infrastructure expenses with the parent company; why is a portion of your salary not also included? Surely work goes into finding and brokering relationships with the motor manufacturers, selecting opportunities, setting the vision, etc.<p>On paper, even if you allocated 100% of the profits to pay for a person&#x27;s salary, it can barely sustain a single person. The only realistic outcome is for it to be added into the fold of an existing company that wants to get into the high-end trolling motor space as a break-even business unit. Potentially serving as a loss leader to sell other higher margin items.<p>This reduces your prospective buyers down to about ten in the entire country.<p>One thing I love in your data: tracking traffic -&gt; revenue. Cool!
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staunch超过 11 年前
How is this more open than just about any auction on Flippa? Basic financials and traffic stats are the norm, not a special example of transparency.
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dingdingdang超过 11 年前
Thanks for the transparency, I&#x27;ll wager that this sort of behavior will become much more naturalized in the business environment at large as pre-internet behavior gradually becomes replaced with post-internet sentiment - for now it certainly reflects very positively on you and your business.
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grimtrigger超过 11 年前
Hey, i highly suggest getting rid of the reverse auction.<p>Imagine X is the highest value any bidder attaches to ownership of the site. Even if the price drops below X, the bidder has an incentive not to bid (since they can potentially wait and scoop it up at a discount). You&#x27;re throwing out money.
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kposehn超过 11 年前
One very important note for anyone looking to purchase this site: a huge portion of his traffic - and revenue! - is from direct visits (no search).<p>That is a fantastic asset to the site and makes it very sticky in the face of Google algorithm changes.
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fatbat超过 11 年前
Thank you for the awesome article and sharing the details! One random question from looking at the charts, how do insurance&#x2F;product liability for drop shipping work? Are they generally not needed or covered by someone else?
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ajiang超过 11 年前
A few questions:<p>* Why is Q4 Projected so low compared to Q1-3? * Why are Gross and SDE Margin % falling consistently from 2011-2013?<p>I think one thing that pops out at me is that while most business get better margins as they scale, your margins are actually declining or stagnant, which seem to be driven by the decline in COGS.
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OhHeyItsE超过 11 年前
Great post and thanks for sharing.<p>How did you get started in this? I mean - why trolling motors? And, how did you find drop-ship suppliers for such a seemingly expensive&#x2F;low volume-product?<p>Good luck!
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seansoutpost超过 11 年前
Will you take bitcoin for the purchase price?
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tslathrow超过 11 年前
Part of the reason this is not a good business is you can&#x27;t amortize advertising. ie no SG&amp;A leverage going forward. unlikely to see decreasing marginal cost<p>why not post cash flow as well?<p>you will also get your ass kicked for posting projected financials without a series 7 &amp; 63
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mrmagoo312超过 11 年前
I&#x27;m skeptical of OP, because I remember him on reddit saying he made over six figures on his drop-shipping sites... Unless he has other successful sites, he flat out lied about his successes, possibly to sell his ebook.
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vpayette超过 11 年前
Can you share the details of the site&#x27;s tech stack?
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