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$79,000 USD

CraftsNinja (Multi-Million Dollar Opportunity)

www.craftsninja.net

Appears in Gifts and collectibles , Established stores, Inventory, Business and Franchises under $100,000, eBay, Etsy

General description

► STORY & BACKGROUND

How did CraftsNinja come into existence?

So we had a business tour scheduled last year to visit few Asian countries to attend some masterminds and network with like minded people. So we booked our tickets for March 2017. While traveling we discovered lots of handmade items, talented craftsman & woodworkers and the work they have been doing was amazing. Me & my biz partner saw an opportunity in the market and wanted to capitalize on it. These artisans are hard workers but their talent is not paid well and they are not exposed to the international market, so there you go that is how CraftsNinja was born.

So after attending our mastermind & networking sessions, we decided to stay a bit longer to research some great product ideas and design a prototype and test it out on Facebook.

After a week of research, we were finally onto some designs and some great product ideas. We decided to turn them from paper into reality, so we hired 3 artisans for this job. We gave them instructions, designs and let them do their job. After 2 days we were contacted by them and now we had our prototypes. The reason we wanted 3 prototypes from 3 different artisans was to see the quality difference between the 3. We decided to go with only 1 out of 3 ( in handmade the quality is what matters). We wanted to WOW our customers as their first impression.

Now it was time to do a photoshoot and take some operational videos for our social media test. We had our CANON 70D complete kit so we decided to take some crisp clear pictures and send them to our designer for quick edit. After 2 hours we were ready to create and launch our first Facebook ads test campaign.

My biz partner who takes care of all the marketing, growth & conversion strategies decided to test it out to 4 big countries US,UK,CA,AU with $50 ad budget. He scheduled the new campaign for next day midnight. We were so excited to the results. The campaign went live after few hours, here goes our first sale after 2 hours, followed by the second and third! we jumped out from our chairs like crazy we knew we got the next big thing!! The day ended up with 12 sales making us little over $500 in revenue which was INSANE. Our first test campaign on the very first day without any optimization was sitting at 1000x ROI. People were liking, commenting & sharing like CRAZY, this shows how passionate this niche is once you have a quality product.

As the excitement was on peak, we didn't pause our campaign but we let it run instead without thinking that we didn't had any inventory to ship that time. So I quickly went to the product listing and wrote down that this particular handmade item is a PRE ORDER and shipping takes anywhere from 5 to 10 days but this didnt stop people from buying it. After a week of running the campaign, we had over 100 orders that need to be fulfilled and shipped ASAP, so we slowed down the ads to work on our manufacturing and logistics first. We hired 3 more artisans to work on pending orders and then ship them via DHL so customers get it on time, Although customers do understand that handmade items do take some time to ship them.

We initially started our test run on our existing store because we wanted to test out fast rather than developing a site which takes around 2-3 weeks for a branded site like CraftsNinja and we did good numbers on that and later on after a few weeks once we had setup our manufacturing and logistics process, we launched CraftsNinja ( the brand you will be buying and as a BONUS we will include the other one as well, more on that later).

We also sell some of our items on Amazon FBA and the ROI is crazy, we have got BEST SELLING TAG for one of our products.

We use a fulfilment service to fulfill all our orders. Shipping times on stocked goods are now 2-15 working days ( depending on location US,UK being the fastest ).

The store has an established brand image and our Facebook and Instagram audiences are passionate who love our products. We have millions in pixel data which is rich with thousands in sales, millions of custom audiences ready for the new buyer to take it off.

The potential for growth with this brand is huge, harnessing channels like wholesale, ebay, etsy would take it to the next level.

Profit margins can easily be improved if you know what you're doing. We spent thousands of dollars in R&D, DESIGNING, DEVELOPMENT, SOURCING, BRANDING, AD TESTING on all our products, so you won’t have to spend money on this unless you are branching out with testing new products which is recommended to scale this brand to 8 Figures.

Why are we selling our BABY?

Last year in Nov-Dec 2017, my biz partner who runs all the marketing & growth operations was diagnosed with cancer which ultimately broke his life and he completely went out of business to focus on his medical conditions and to give time to his family which I totally understand and its not easy to give up on your dreams. So all the marketing operations were halted by my partner and now we want to raise money for his medical expenses by selling our baby which we regret but we have no other options as the medical bills are piling up every single day, in addition we want to see our baby grow and want someone to take care of it because the potential in this niche is unlimited. I wish we can continue this but GOD had decided something else in our lives.

NOTE: We will be available to offer the buyer full support and training for 1 month after the sale.

► EXECUTIVE SUMMARY

CraftsNinja is a handmade products brand that sells handmade music boxes in variety of niches but not limited to. One of the strategy of the website has been to offer a FREE music box if a customer buys 4 or more music boxes which increases the AOV and LTV of a customer. The second strategy is asking customers to pay for VIP shipping expense (which ultimately would bring a profit to the store), more strategies will be discussed with the buyer. Thanks to our marketing and branding skills, we have been able to sell over 70,000 music boxes to 120 countries worldwide.

► ANALYTICS (business launched 11 months ago)

Revenues (11 Months) → $1.1 Million ( From all channels i.e. Shopify Stores, Amazon FBA, Wholesale,Etsy)

Profits (11 Months) → $448.960 ( We can provide P/L statement for serious buyers )

Traffic (11 Months) → 1267000 ( 2 shopify stores combined )

Email Subscribers → over 50,000 ( never ever marketed to, HUGE POTENTIAL TO KICK START BUSINESS )

Online Conversion Rate → 3.11%

► WHAT IS INCLUDED?

1 • A Profitable Branded business that Generated $1.1 Million in 11 months (70,000+ music boxes sold)

2 • Our old store on which we had a test run for the music boxes ( around $300k+ revenue), will be revealed to the buyer ONLY.

3 • Branded Domains ( [REDACTED] , [REDACTED] )

4 • Huge Email List of subscribers: Over 50,000 Subscribers

5 • Facebook Ad accounts ( Millions in pixel data, millions of custom audiences, thousands of ad campaigns ready to GO)

6 • Inventory worth $120k retail value ( bought at $30k ) , can be shipped to anywhere in the world.

7 • Sleek logo and brand images & videos

8 • Direct Contact details with artisans & logistics company

9 • Full support via Email, Skype.

10 • A very efficient customer service team that will work only based on the amount of incoming workload: dealing with support tickets, emails, order fulfilment and other relevant services for only $2/hour. Fully automated and no need for training. You can continue working with them or not, there is not fixed term contract in place.

11 • Premium Theme worth $500, designer & dev contacts.

► CURRENT SITUATION

As you can see from the revenue graph, sales have dropped in the last few months. This happened mainly due to lack of advertising (as you can see the traffic decreased proportionally in the same way) as my business partner was diagnosed with cancer so he had to halt all marketing operations but we are still getting sales every single month from organic traffic i.e. Google, FB, IG.

However, the data gathered during the past 11 months can easily help the new owner to restart & re-create new successful ads to run on Instagram and Facebook (based on the same criteria adopted for the past ones).

Moreover, there is a great potential coming from Instagram influencers (which we temporarily stopped using back in June 2017 because of a shift towards FB advertising, but which still had a high potential of bringing great revenues).

Finally, retargeting, DPA and remarketing emails and advertising represent a huge opportunity which we never had the time to explore, having generated more than 319,278 abandoned carts in the last 11 months - the majority of which data can be used for retargeting campaigns.

P.S. You'll notice most stores listed on the Shopify exchange are valued at 1-3x their previous 12 months revenues. We've priced CraftsNinja at a reasonable price as we're looking to raise money for Cancer treatment as soon as possible.

Why is this brand valued at US $358,670 on Shopify? ( screenshot below )

NOTE: This particular valuation is only for this brand, but we are giving you an entire business as a BONUS with this brand which has already done over $300k+ in revenue ( 40% net margins ) plus the inventory ( retail value $120k) which will be shipped to anywhere in the world and other assets.

Value of any business depends on the multiplication of revenue it has generated + value of assets. We have been operating for just the past 11 months and already generated over $1,100,000 in gross revenue with $448,000 in net profit ( before taxes ). We could easily be pitched for at least 2 times of this amount however as this would be a new business for an owner with a learning curve, we have kept the price to simply value our efforts, knowledge you will gain and assets of the business plus we are raising all our money for the medical expenses of my business partner so we have decided our valuation very conservative! We are priced to sell.

PRICE IS ABSOLUTELY NEGOTIABLE

I really want us both to be happy with the transaction :)

Feel free to reach out to me if you have any questions!

Financials and traffic

The more money you pour into the ads the more profit you will have, when 1k is spent on ads a day it usually results in 5-10k sales. Right now we are not spending money on ads due to our marketing operations halted. But we have sales from loyal returning customers and organic rankings on Google.

Average profit/month

$44,896 USD

Average overall profit margin

40%

Average number of sales/month

4,649

Value of inventory

$30,000 USD

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Business Expenses

Advertising costs depends on the scalability of the business, the more you launch new ads the more you will make because our products are proven to sell.

Expense item

Cost

Shopify plan

$79.00/month

Subscriptions (ie. Mailchimp, apps)

$150.00/month

Advertising (ie. Adwords, Facebook ads, etc.)

$15,000.00/month

Inventory warehouse

$350.00/month

Employees (Including contractors and freelancers)

$350.00/month

Domain

$0.00/month

Inventory

Inventory Retail value is around US $120k, and is ready to be shipped to new buyer of this brand.

Located in Florida

Willing to ship inventory

Willing to transfer relationships with suppliers

What’s included in the sale

  • Physical inventory
  • Logo and branding assets
  • Social media accounts
  • Personal support after sale
  • Domain
  • Product photos

Social Media

Facebook

craftsninja

Instagram

craftsninja

Newsletter list

54,000 subscribers

Social media followers

5,000 people

Q & A

Do you work with any employees, freelancers, or contractors?

Main tasks are outsourced to an experienced customer service team, which deals with:

Email responses and FB messages;

Handling support tickets (handling 25-35 tickets per hour);

Dispute management

Order fulfilment and processing. The cost is $2/hour, and is based on current incoming workload - no fixed contract. The future owner is free to continue working with the customer service team or not.

Why should someone buy this store?

We have virtually automated almost the entire business operation except marketing and growth ( which the new buyer has to do ) and set it up for scale. This is a proven store with the numbers to back it up. If you're interested in the branding or know how to maximize the value of customer data through the backend, this is a huge opportunity for you. The brand has been invested heavily into with both time and money, developed to maximize revenue. All the hard & tedious work has been done. Me and my biz partner were operating this business working 30 hours a week. All while traveling Asia, touring China & developing relationships with manufactures, artisans & suppliers. This store can give you that kind of location freedom by allowing you to make money anywhere, with a relatively low amount of time invested. Customer service, order fulfillment, email marketing funnels, content has all been developed already. The foundation is set for you to come in and monetize all our achievements while continuing to grow the business and marketing.

How can the future owner improve the business?

This is the most exciting aspect of acquiring this business...

From a marketing perspective, a lot can be done:

  1. PPC ads (Google Adwords, Bing Ads, Snap ads, Reddit ads)

  2. Influencer Marketing (This could be huge by finding passionate bloggers/ Instagrammers in the handmade niche

  3. Better email marketing (we used one template over and over and didn't do much segmentation in abandoned cart email sequence)

  4. Organic Content/ Creating A Community- Because of the nature of the customers, this is probably the best thing. We never created a sense of community - even though all of my customers are passionate and clearly enjoy connecting around these issues. So doing things like sharing relevant (non-salesy Facebook content), emailing about current products, creating a forum or blog, would help increase word-of-mouth customer acquistion and increase customer loyalty.

  5. Getting these products on Ebay. Shopify has an Ebay integration and I guarantee people are searching for keywords relevant to this niche on Ebay.

  6. Fulfilling orders quickly and staying on top of customer service. The new owner will have a chance to start with a clean slate here. Notifying the customers that the business is under new management will create an instant surge in sales.

  7. Adding new designs and expanding product line.

What work have you put into the store?

We've invested thousands of dollars into R&D, DESIGNING, DEVELOPING, BRANDING, SOURCING, AD TESTING, CRO , FUNNELS which increased revenue by 15% and increased average order values by 25% to over $39 per sale. This has allowed us to scale the business to $20,000+ days, which you will be seeing exactly how. If you are happy with average $15000 revenue a month, all you need is a weekly marketing email to the existing email list. This is an easy to advertise business and through Facebook advertising, and you can expect it to bring 30-40%+ profit every day, irrespective of the amount you invest. So, if you can spend $10,000 a day, its expected return would be $32,500 to $42,500 that day.

How many hours does it take to run this business per week?

30 hours

$79,000 USD

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