Buying High-Ticket Drop Shipping Stores and What You Need To Know Before You Invest
How do you buy or invest in an eCommerce store?
To buy dropshipping websites, you can check the Shopify market place, empire flippers, sometimes it is on the flipper website. In the future, I will have my own market place for high ticket dropshipping store.
YOU WILL LEARN:
- How to estimate store worth
- How to make an offer
- How to make sure it is going to be a good investment.
- How to scale it so you get your investment back
How to determine the 'multiple' on high ticket dropshipping store?
High ticket drop shipping stores have two main data points
- Monthly average net profit
- How long the store has been around
You combine those two data points, you will get the 'multiple'. You multiply the average net profit every month. That is the value of what the business is worth.
I just purchase a business that is worth $10,000. It was making an average of $350 a month. The store has been around for only 9 months.
- If the store is not been around for 12 months, do the multiple around 12-16x as it does not have a full year data.
- If the store is 12 months or older, use higher multiple, around 20-30x.
- It also depends on how many VAs and suppliers it has. I gave it a higher value because it saves me time to train a VA to do the order entry and customer service. Also, it saves me time in finding suppliers.
- In the last two days, we made 3 sales, about $3000 in revenue. It is doing great. We will be scaling the store. That is the process of how to buy a store.
- Now, to scale a store, you want to make sure you do everything that you do of what you normally do in a store.
WHEN YOU HAVE THE STORE, YOU DO EVERYTHING THAT NEEDS TO BE DONE SUCH AS:
- Conversion optimization
- Lead value optimization
- Optimizing the average order value,
- Putting more assistants to handle sales and customer service.
- Find more suppliers.
- Getting more products
- Redesign the theme
- Make sure the email marketing is done right.
Enroll in our step-by-step High-Ticket Drop Shipping Masterclass where I take beginners from scratch to launch in 30 days and then teach how to scale past 7-figures. Click the link to learn more: https://ecommerceparadise.com/masterclass