What does your business do?
Established in June 2016, this well-established business sells customizable cannabis products along with a mix of pre-designed products used to stock up a smoke shop/vape shop/dispensary.
The majority of sales come from custom orders and around 5% are from repeat customers. It is well-positioned in a booming niche (weed/cannabis/marijuana/branding) that will need these services over the next few years and beyond.
- Little Competition - This is one of the only companies in the space of customized products.
- Most sold product/category: Customized rolling trays
- Scalable - There are many products that can be great additions to the top-line revenue
- One of the Biggest Opportunities: While being in the cannabis niche, it can still run paid ads and use Paypal
- Low Time Commitment to Operate & Easy Management
- Customer support: Mostly via email with many templates set up
- Between 5 & 15 hours p/w
- Outsourcing - Tasks could easily be assigned to VAs
- Average Order Value: $69.7
- High Average Profit Margin: 40%
- Low Refunds/Products Returned rate: 0.5%
- Repeat Customers Rate: 4.80%
- Products featured on many big cannabis publications & collaborations with artists/brands
- Mailing List w. 30k+ emails & 45k+ Followers on SM
- Cannabis Business Approved for Facebook, Instagram & Google Ads
- Also, PayPal approved!
I guarantee you can't find any cannabis businesses doing paid ads. This is one of the only cannabis-related companies that are able to do paid ads on all networks! You can use PayPal too. Good luck finding a business in this niche that is able to take PayPal payments and do paid advertising on major platforms like IG and FB.
This company started from a garage and for the first few years did nothing but a grassroots approach. In the last year and a half, the business went through a totally different change. I changed the eCommerce platform from Yola to Shopify. I started investing money into paid ads and increase the number of products I have. Custom products yield me the most money so I have been focused on that.
The Shopify store is well-developed with a focus on user experience. Speed is very important to me and the right apps. I use non-intrusive plugins that increase average order values. I have spent a good amount of money refining my ads which is why my ad spend is so high but you will be taking over the Facebook ad account so you can continue spending money where it is working most efficiently.
We have been featured on many big cannabis publications (LAWeekly, WeedMaps, DOLA, etc.) and have done many wholesale orders or collaborations with artists/brands like Pink Dolphin, TheSmokingClub, 85SouthShow, Lil Duval, Young Roddy, Tyson Ranch, Breal, Playboy, HUF, and more.
98% of the orders are all in the USA. The Instagram account has almost 40k real followers that have grown through doing giveaways, engaging with the community, and doing collaborations with other accounts. It comes with a 30,000 email list. All current and customers from the same industry.
How does your business make money?
The business makes money in different ways and is very diversified with its monetization strategy. There is a portion of the business where I ship out products and a portion of the business that other companies dropship for me. This has allowed me to increase my product line while keeping my output level to a minimum.
Most of the revenue comes from custom polymer rolling trays. Customer purchases the custom trays on the website and uploads the image they want. I used that image and submit it along with other orders once a week.
I have products throughout the website that I dropship from other vendors. The pre-designed rolling trays are mostly mine. Either I ship out to customers from the website or other websites sell those trays and I dropship for them.
Describe your purchasing and order fulfillment process
If I'm fulfilling the order there are two ways I fulfill orders. For custom tray orders, I submit the artwork to the factory and they ship it out in batches to me. I then ship out each one to the customer in two weeks when I receive it. I usually send the artwork to the factory once a week.
For the products I ship out in stock, I just send them out when I get the order.
For dropship orders, I put the order in with the vendor either thru their website or thru e-mail. I just e-mail them the product and shipping address.