Why the business is so attractive:
THE PRODUCT:
Galaxy Guardian v2.0 is a colorful deep-sky galaxy and nebulae projections device that transforms your room into a starry night sky!
- It is a breakthrough product that entertains and solves problems.
- It can sell worldwide.
- It appeals to various age, sex, and geographic location audience pools, crafted according to the benefits the product offers.
The product is hand-picked among millions because it is:
- Unique but not niche
- An immediate attention grabber
- In an unsaturated market with growth potential
SHOP CONVERSION RATE:
The shop has operated with other home-decor products for 2 months before.
It has operated for 1.5 months with this product - enough to capture the buyers' sentiments of high interest in this product.
Conversion rate from Cold ads only (last 7 days) is above 3%, which puts it in the top 20% of shops.
MARKETS:
Canada and Australia have emerged as the best markets in terms of Sales/CPM balance.
The product can sell worldwide.
THE WEBSITE:
Turnkey solution of Domain - Shopify - Shopify Apps - Email Automation Funnels Ready - Corporate email - Dropshipping Agent - Optimized for conversion Landing Page.
Design is responsive to all devices, and we have created a seamless customer experience. More products can be added to the store.
Customer reviews on site! You know how important Social Proof is for a business. We have already nailed that.
PRICING AND MARGINS:
Researched optimum pricing of $49.90 (there is room for a slight increase).
COGS = 40%
Gross Profit Margin (Markup) = 60%!
Virtually there are no other big expenses except COGS and Ads.
SUPPLIER:
Proven suppliers.
COMPETITION:
Mostly indirect. Going around competitors by:
- Trade name (it makes it impossible for the visitors to search and find similar products online)
- Attractive offers
- Attractive landing page
- Creative copy angles
COMMUNICATION:
Meta Ad Account with a connected pixel that has already gathered precious data.
Meta test sales for slightly above 1 month are already done, which means that we already have:
- Winner creatives
- Winner markets (CA and AU have emerged as the best markets in terms of sales/CPM balance)
- Winner Meta Audiences
Facebook Page with 430 followers (Enough to run ads. With proven tactics, FB followers can be increased 5 times for 1 week).
Instagram Profile.
BOTTOMLINE:
Semi-automated dropshipping e-commerce. Meta Ads are the main sales source.
PLANS FOR DEVELOPMENT
Revenue Potential Monthly Projection
*Ad Spend: 10k/month (120k p.a.)
With ROAS of 2.5, Revenue = 25 000
COGS,40% = 10 000
Gross Profit =15 000
Profit before Tax: 5 000 (60k or ROI1.5 p.a.)
*Ad Spend: 50k/month (600k p.a.)
With ROAS of 2.5 Revenue = 125 000
COGS,40% = 50 000
Gross Profit: 75 000
Profit before Tax: 25 000 (300k or ROI1.5 p.a.)
*Ad Spend: 100k/month (1.2m p.a.)
With ROAS of 2.5, Revenue = 250 000
COGS,40% = 100 000
Gross Profit =150 000
Profit before Tax: 50 000 (600k or ROI1.5 p.a.)
* Meta Ad Spend = Investment. Minimum profitable ROAS = 1.7
PLANS FOR FUTURE DEVELOPMENT
Increasing the AOV. Creating a website conversion funnel.
Cross-selling similar products. Build an astronaut collection.
Introducing new audiences.
Expanding to new countries.
Working with influencers.
Physical product branding.
Improving SEO.
Starting Google Ads.
Scaling.
The vast product features, various benefits + problem solutions, and worldwide delivery - give unlimited market growth options. There is no threat of a saturated market, so you can potentially expand to the moon.
If someone tells you that an online business can be profitable by organic reach only - they probably are not being serious. Currently, an e-commerce business is highly dependent on paid ads (which, however, also give you the opportunity for scaling).
The owner is a strategic marketer and is seeking a partnership with an investor. The owner expects to remain in the business, managing the operations and marketing efforts, so let's discuss!
Please, note that $10 000 is the minimum monthly spend, expected to be invested in Meta Ads for this project.
