Recently Sold!
Cannabis Products Ecommerce Business
Asking Price: $400,000
Description
This business is one of the leading ecommerce sites in the cannabis head shop and vape niche. Originally started in late 2017 and purchased by the current owner in 2019, it has been growing steadily since the time of acquisition and still has tremendous upside potential.
The website focuses on quality and high end smoking and vape products of which 60% are dropshipped from the supplier and 40% are shipped from a 3PL. Orders and clients are managed and maintained by 1-2 part time contractors. They know the systems and products and are able to handle order processing + client inquiries and issues.
The site has focused on higher end products and brands. Higher end products have solid margins that have enabled the site to increase its success with moderate effort! There are several opportunities to expand existing lines as well as adding other lines of products. In addition, private label opportunities can easily be grown from these early stages.
The site utilizes one of the most popular ecommerce platforms currently available, Shopify. This platform is solid and robust, offering many features to both new and experienced site owners. The site utilizes several of the Shopify apps features as well as a couple customization apps to enhance the user experience and increase sales.
Key Benefits Include:
- Good Margins - ~35% Gross Profit Margin
- Passive Income- the website can be as hands on or off as desired
- Homebased Opportunity
- Ranks and converts well in its niche
- Sales up 38% in 2021 over 2020
- Current team members will remain & work with new owner
- Private Label line of products that has taken off and is in early stages, presenting huge opportunities to a new owner
- Recent Website Enhancements to Increase Sales:
- Removed products that were dead, unavailable or not selling
- Enhanced the site speed and layout to improve user experience
- Added several new product lines which have increased the bottom line significantly
- Expanded original product lines and worked with manufacturers to create new products
- Reviewed all costs and expenses and found ways to optimize and decrease expenses by over 25%
- Increased relationships with drop ship organizations in this vertical that has expanded new company lines
Financial Overview
| Gross Revenue |
$331,516 |
| Cash Flow |
$126,928 |
| Archive Date |
04-24-2022 |
| Status |
Archived |
| Year Established |
2017 |
| Employees |
0 |
| Inventory |
Not Included in Asking Price |
Other Information
| Category |
Ecommerce |
| Industry |
Cannabis |
| Location |
USA, Delaware (Select County) |
| Home Based Business |
Yes |
| Seller Finanacing Available |
Yes |
| Income Sources |
Products/Services |
Growth
With its established foundation, there are numerous opportunities to scale the business. Strategies for future growth include:
- Focus on Marketing efforts
- Implement a social media strategy
- Enhance SEO efforts both onsite and offsite
- Increase available dropshipping opportunities for both products and brands
- Build more supplier relationships
- Increase and expand affiliate program
- Capitalize on new states that legalize the use of cannabis in any of several ways
Competition
This business has the competitive advantage by focusing on higher end items with increased profit margins compared to other sites. The site is attractive and easy to navigate and receives many comments about its mascot!
Interested? Let's get in touch!