Niche: Cannabis

Monetization: eCommerce, Shopify
Location: United States
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  • #7435082

    Listing Number

  • $195,000

    Listing Price

  • $22,351

    Monthly Revenue

  • $5,097

    Monthly Net Profit

  • 70.12%

    Cashflow Volatility

  • 31.37%

    Cash Yield

Listing Summary

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.

HIGHLIGHTS

  1. Little Competition - This is one of the only companies in the space of customized products.
  2. Most sold product/category: Customized rolling trays 
  3. Scalable - There are many products that can be great additions to the top-line revenue
  4. One of the Biggest Opportunities: While being in the cannabis niche, it can still run paid ads and use Paypal
  5. 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
  6. Average Order Value: $69.7
  7. High Average Profit Margin: 40%
  8. Low Refunds/Products Returned rate: 0.5%
  9. Repeat Customers Rate: 4.80%
  10. Products featured on many big cannabis publications & collaborations with artists/brands
  11. Mailing List w. 30k+ emails & 45k+ Followers on SM

BEST PART

  1. Cannabis Business Approved for Facebook, Instagram & Google Ads
  2. 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.

  • Business Created

    June, 2016 - (5 years 3 months old)

  • Assets Included in the Sale

    The following are included in the sale of this business:

  • Custom technology
  • Customer databases
  • Domains
  • Social media accounts
  • Website files, source code, and content
  • e-Commerce platform accounts

Fih.com's BRAG Rating

6.60/10
Breakdown of Ratings
  • Brand Reputation
  • 1.60/2.5
  • Risk Profile
  • 1.30/2.5
  • Asset Value
  • 1.60/2.5
  • Growth Potential
  • 2.10/2.5

Earnings

Revenue:
  • Average Revenue: $
  • Total Revenue:  $
Profit:
  • Average Profit: $
  • Total Profit: $

Traffic

Page View:
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Social Media Channels

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Work & Skills Required

  • Low Time Commitment to Operate & Easy Management
  • Outsourcing - Tasks could easily be assigned to VAs
  • Customer support: Mostly via email with many templates set up
  • Between 5 & 15 hours p/w

Other Information

OPPORTUNITIES FOR THE NEW OWNER

  • Partner with wholesalers and distributors in the industry
  • Tradeshows
  • Work with more affiliates
  • Make compelling creatives and spend more on paid ads
  • Call smoke shops / dispensaries / vape shops / CBD to sell them wholesale trays
  • My vendors have more products you can add to the website. There are also vendors I can show that I haven't used yet.
  • Create new lines of products like stash boxes, new rolling tray designs
  • Partner up with more eCommerce smoke shop/head shop stores to have them purchase wholesale/dropship trays from you
  • List on Marketplaces like Amazon, Walmart, eBay, Etsy, OfferUp, and more
  • Find a better social media strategy than my current one. I only do IG but there is room to utilize TikTok, Pinterest, and Facebook
  • Start doing YouTube videos. There is a good opportunity in that.

Inventory (Included in the asking price)

Value: $4,500 (wholesale cost)

Units: 200

  • Alexa Rank: 1,031,108
  • Referring Domains: 251
  • Backlinks: 129k
  • Total Keywords: 1.33k

Seller Support Includes

Reason for Sale

Why are you selling this business?

I am looking to invest in real estate. I have also been very interested in Amazon FBA businesses. I have tried purchasing a few smaller brands but they got away from me. I have successfully grown this company to a point where I am comfortable handing it over to the next owner to take it to the next level.

I am looking to sell this business and invest in a bigger Amazon FBA brand.

Buyers Profiles

Who would this business be perfect for?

  • An existing company/brand looking to expand diversify
  • A couple or a single person/couple looking for a from home business
  • Someone who wants to achieve the true potential of an amazing brand and business

SWOT Analysis

  • Strengths

    • Rare to see cannabis product approved on top marketplaces
    • Scalability via Shopify/Amazon
    • High authority website
  • Opportunities

    • Partner with wholesalers and distributors in the industry
    • Work with more affiliates
    • List on Marketplaces like Amazon, Walmart, eBay, Etsy, OfferUp, and more
  • Weaknesses

    • Low Margin
    • Slowly declining traffic
  • Threats

    • Risk of being suspended by PayPal
    • Being taken off Google & Facebook Ads

Frequently Asked Questions

Answered by the Seller

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