Overview

Eternal Dries is a women’s fashion e-commerce brand operating on Shopify. With a reported monthly revenue of $101,810 and a profit margin of 71%, the business appears profitable on paper. However, deeper analysis raises concerns about its sustainability and valuation. The business operates with minimal overhead due to automated inventory management and customer service, primarily driven by influencer marketing and email campaigns. Despite an engaged audience and established branding, revenue and profitability have shown signs of decline following an initial spike in August and September.

This report assesses Eternal Dries across five critical areas: website performance, finances, operational efficiency, customer relationships, and legal compliance. We also highlight key risks and opportunities to help our client make an informed acquisition decision.

Key Insights

Website Performance & Metrics

• The website is well-branded and visually appealing, featuring a variety of women’s fashion products.

• The site is built on Shopify, making it easy to manage, scale, and integrate with various e-commerce tools.

• No Trustpilot or Google Reviews are available, raising concerns about brand reputation and customer trust.

• The business has an email list of 8,463 subscribers, which is a strong asset for retargeting and repeat purchases.

• Traffic is driven by influencer marketing and organic SEO, with limited data available on paid ad performance.

Financial Performance

• Revenue Trends: The reported total revenue is $510,554, with monthly revenue of $63,819, but the revenue trend has been declining after an initial spike.

• Profitability Concerns: While the profit margin is 71%, the profit multiple (0.3x) and revenue multiple (0.2x) are extremely low, suggesting undervaluation or an unsustainable model.

• Expenses: Major costs include COGS ($7,120), Influencer Marketing ($13,274), and Payment Processing Fees (2.9% per transaction). The high influencer marketing spend raises concerns about dependency on paid promotions.

• Average Order Value: $128 per order indicates a mid-to-premium pricing strategy. However, the number of orders (3,667) is lower than the number of customers (4,723), suggesting low repeat purchases.

Operational Efficiency

• Business Model: The store runs on Shopify, with automated inventory management and customer service handled by virtual assistants (VAs).

• Operational Complexity: The owner spends 10-15 hours per week managing sales, marketing, and supplier relationships. This is relatively low-effort, making it an attractive turnkey operation.

• Inventory: The business has 500 units of inventory valued at $7,500, which suggests a just-in-time inventory approach but could also indicate slow-moving stock.

Customer Data & Relationships

• Email List: The business has 4,698 email subscribers, but this is significantly lower than the 8,463 claimed on Flippa. The discrepancy suggests either inflated numbers or list decay.

• Customer Base: The business has 4,723 customers and 3,667 orders, indicating that some customers have not completed a purchase.

• Customer Trust Issues: With no Trustpilot or Google reviews, there is no clear indication of customer satisfaction, raising concerns about return rates, product quality, or customer service issues.

Legal & Compliance Due Diligence

• No major red flags are visible regarding compliance, but further investigation is needed into:

  • Supplier agreements and contracts.

  • Customer return and refund policies.

  • Business registration, trademarks, and legal ownership of brand assets.

Challenges Identified

Declining Revenue & Profitability

• The revenue peaked in August and September but has been declining since.

• The profit multiple (0.3x) and revenue multiple (0.2x) are alarmingly low, making this an unattractive investment without significant restructuring.

• The decline suggests possible market saturation, ineffective marketing, or decreasing product demand.

Over-Reliance on Influencer Marketing

• The high influencer marketing spend ($13,274/month) raises concerns about long-term sustainability

• If influencer partnerships stop, sales may drop sharply, indicating a weak organic customer acquisition strategy.

Customer Trust & Retention Issues

• No online reviews (Trustpilot or Google), making it difficult to assess customer satisfaction.

• Low repeat order rate, suggesting that either product quality, customer experience, or pricing strategy may be an issue.

• The discrepancy in email subscriber data raises concerns about inflated marketing claims.

Short Operating History (9 Months)

• The business has only been running since June 2024, making it difficult to predict long-term performance.

• Most buyers prefer businesses with at least 2-3 years of financial history to assess revenue trends.

• The reason for sale is unclear, raising concerns about potential hidden issues.

Recommendations

Conduct Direct Communication with the Seller

• Confirm the true reason for selling and inquire about recent revenue declines.

• Request detailed revenue and profit data from the past two months to verify trends.

• Ask for customer feedback or reviews that were not publicly shared.

Assess Customer Satisfaction & Retention

• Gather real customer reviews and return/refund rates before making an offer.

• Verify order fulfillment reliability with suppliers to avoid potential supply chain issues.

Diversify Customer Acquisition Strategies

• Reduce dependency on influencer marketing by focusing on SEO, paid ads, and social media growth.

• Strengthen email marketing automation to boost repeat purchases.

Adjust Pricing & Marketing to Improve Profitability

• Reduce influencer marketing spend to increase net profit margins.

• Consider introducing loyalty programs or discounts for repeat customers to improve retention.

Perform Legal Due Diligence

• Review all supplier contracts, trademarks, and financial statements to ensure no hidden liabilities.

• Confirm Shopify account ownership transfer process and ensure all brand assets are legally included.

Conclusion

Eternal Dries presents an interesting acquisition opportunity, but significant risks must be addressed before proceeding. While the brand has strong branding, a streamlined Shopify operation, and a solid email list, its declining revenue, high dependency on influencers, and lack of customer reviews raise concerns about long-term sustainability.

The profit and revenue multiples (0.3x and 0.2x) are too low, suggesting either undervaluation or underlying financial weaknesses. Additionally, the short operating history (9 months) makes it difficult to assess long-term potential.

Before recommending an acquisition, we strongly advise direct discussions with the seller to clarify financial inconsistencies, marketing sustainability, and customer satisfaction. A structured growth plan and risk mitigation strategy will be necessary to turn this business into a long-term success.