Overview
This is a five-year old Shopify store specializing in hosiery and medical/sports compression socks. The business runs a hybrid model dropshipping plus selective in-house inventory for fast movers and reports solid unit economics: Annual revenue EUR €68,390; annual profit EUR €32,597 (≈48% margin). The asset includes the domain, Shopify store and files, social accounts, supplier agreements and an email list (~31k). The current financial multiples (profit multiple 1.6×; revenue multiple 0.8×) imply an implied valuation between ~EUR €52k–€55k, which places the listed asking price (USD $58,283) in the same neighborhood subject to currency conversion and verification.
Website Performance & Metrics
Website Speed
Built on Shopify (good baseline). No lab speed test provided must request GTmetrix / Lighthouse / real user metrics from seller. Speed impacts conversion for mobile shoppers (sports/medical buyers often search from mobiles).
Product variation & number of SKUs
Product catalog focuses on compression hosiery and related items. SKU count not provided described as “extensive” via dropship partners with a selective own-stock subset. Ask seller for full SKU list and top 20 SKUs by revenue.
Average Order Value (AOV) & Customer Lifetime Value (LTV)
Reported AOV: EUR €50.00.
LTV not provided. With AOV €50 and modest repeat activity, current LTV likely low-to-moderate needs calculation using cohort data (orders per customer, repeat rate, gross margin per order).
Repeat customer / returning customer rate
Provided numbers raise questions: 31,190 customers vs 1,499 orders implies ~0.048 orders/customer historically inconsistent with normal e-commerce ratios. This suggests either (a) “customers” figure counts email subscribers / prospect list rather than buyers, or (b) reporting mismatch. Clarify with the seller.
Website conversion rate
Not provided. Industry benchmark for health/beauty can be 1–3%. Given AOV and margins, even small improvements would materially increase profit. Require GA/Shopify conversion funnel data.
Website design & presentation
Shopify with user-friendly navigation and product detail pages noted. Product descriptions and medical positioning appear appropriate; however product pages should emphasize clinical benefits, sizing guides, and trust signals (certifications) to increase conversions for medical buyers.
Brand positioning & customer sentiment
Positioned as health/wellness + sports medicine niche higher perceived utility than fashion-only stores. However Trustpilot reviews show mixed sentiment: some customers report long delivery times, missing items and non-response from support; others report satisfactory delivery. This inconsistency undermines trust in medical/health purchases where reliability is critical.
Marketing & efficiency (channels)
Strong email asset (~31,140) and social engagement. Paid channels not specified assume some paid acquisition exists but need CAC, ROAS, ad account access. Email list is an underexploited asset for repeat revenue given reported repeat metrics.
Customer acquisition cost (CAC) & scalability
CAC unknown. With a 48% margin, the business has room to pay for efficient acquisition, but that must be tested. Scalability options: expand paid ads (targeting sports/medical audiences), move into SEO for medical keywords, and B2B channels (clinics, sports teams).
Product offering & marketing angle / repositioning potential
Current angle: functional + wellness. Upside opportunities:
Reposition some SKUs for medical professionals and rehabilitation clinics (B2B).
Introduce subscription models for recurring consumables (compression socks replaced periodically).
Add educational content (fit guides, clinical use) to reduce returns & improve conversion.
Financials
This dropshipping business for sale reports annual revenue EUR €68,390 and annual profit EUR €32,597, yielding a ~48% net margin notably high for a five-year eCommerce operator. Monthly averages are ~EUR €5,699 revenue and ~€2,716 profit. Historical month-by-month figures provided (May 2024 → April 2025) show variability but overall a steady baseline with several months of stronger performance (peaks in Oct/Nov 2024 and Mar/Apr 2025). Using the seller’s multiples, implied valuations are profit-based ≈ EUR €52,155 (profit ×1.6) and revenue-based ≈ EUR €54,712 (revenue ×0.8). The listing asking price (USD $58,283) sits close to these implied values, but currency conversion and the lack of audited statements mean the price must be validated against bank and merchant statements before moving forward.
Marketing
Paid: Unknown spend and channels. If paid acquisition exists, key metrics to request: CAC, ROAS, ad creative library, lifetime spend by campaign, top converting audiences. With 48% margins, doubling down on profitable creatives could scale quickly but only after verifying sustainable ROAS and testing audience saturation.
Organic:
Email: 31k list significant latent value. Current repeat purchases are low; targeted retention flows, replenishment campaigns (subscriptions), and win-back sequences could lift LTV.
SEO: Likely under-optimized for high-intent clinical keywords (e.g., “medical compression socks for varicose veins,” local German medical terms). Long-term, content/SEO can reduce CAC and raise margins.
Partnerships: Opportunity with sports clubs, physiotherapists, pharmacies for referral / wholesale channels.
Operational Efficiency
Fulfillment model: Hybrid dropship + limited stocked SKUs, low fixed cost structure and lean operations.
SOPs & staffing: Single-person manageable; automation via Shopify integrations reported. Ask for SOPs, average fulfillment times, returns process, and supplier SLAs.
Risks: Dropshipping can cause transparency issues (shipping origin, lead times) reflected in negative Trustpilot reviews. Inventory control for in-house SKUs must be reviewed to ensure stockouts aren’t harming conversion.
Customer Data & Relationships
Email list: ~31,140 major strategic asset; segmentation and activation needed.
Orders & customers discrepancy: 1,499 orders vs 31,190 customers requires seller clarification (likely conflates “customers” with “subscribers” or historic leads).
Reviews & trust: Mixed Trustpilot entries indicate both successful deliveries and claimed fraud/poor service. Reputation management and fast customer service are mandatory in health categories. Ask for returns rate, refund amounts, chargebacks, and customer support logs.
Legal & Compliance Due Diligence
Jurisdiction: Germany eCommerce must comply with EU consumer protection, VAT, product safety and GDPR. Request: VAT registration docs, recent VAT returns, and confirmation of VAT handling for EU dropship shipments.
Supplier contracts: Provided in sale package per listing verify exclusivity, pricing, lead times and return terms. Ensure suppliers are compliant with EU product safety (CE or equivalent where applicable).
IP / trademark: No red flags listed, but confirm trademark ownership for brand assets and domain.
Regulatory risk: Since many items could be used medically, ensure disclaimers and medical claims are compliant and that any “medical device” designations are properly handled.
Customer Reviews (Trustpilot)
Trustpilot snapshots show clear inconsistency: some customers report full delivery and correct items, while others allege long delays, wrong/missing items, and non-response from support (with allegations of shipments from Poland and poor communication). For a health-oriented store, delivery reliability and responsive service are critical. These negative reviews could be caused by: supplier fulfillment failures, misconfigured shipping settings, or inadequate customer support processes.
Business impact: negative reviews harm conversion and make medical customers reluctant to buy. They also increase refund/chargeback risk and could inflate CAC (paid ads need to overcome weaker social proof). Required checks: fulfillment logs, merchant chargeback/refund rates, shipping origin per order, customer service ticket history, and the timeline of when negative reviews occurred and whether seller addressed them.
Comment on Monthly Performance (May 2024 → Apr 2025)
Monthly figures provided show variability: May–Aug 2024 were modest months (€4–6k revenue typical), September dipped (~€1.8k), then Oct–Nov saw spikes (€7–8k), December fell again, early 2025 showed recovery with €4–8k months through April. This pattern suggests seasonality and/or marketing cadence (campaigns causing uplifts). Overall trend is stable but variable, not explosive growth consistent with the low revenue multiple. Request complete 12–24 month P&L and bank/merchant statements to validate these figures and to understand seasonality and campaign timing.
Valuation Commentary (Multiples)
Profit multiple (1.6×) → implied value: EUR €32,597 × 1.6 = EUR €52,155.20.
Revenue multiple (0.8×) → implied value: EUR €68,390 × 0.8 = EUR €54,712.00.
Both implied valuations are in the EUR €52k–€55k band. The listed asking price USD $58,283 sits in the same region once FX is considered on the surface, the price appears aligned with the seller’s multiples, but this is conditional on verified financials and absence of hidden liabilities.
Key Insights (Summary)
The business is highly profitable (48% margin) with lean operations and a sizeable email asset.
Hybrid dropship + selective inventory reduces capital lockup and supports margins.
The business is undervalued on paper relative to its margins (multiples are conservative), making it attractive for a buyer focused on cash flow.
Reputation & fulfillment are the primary risks mixed Trustpilot feedback and delivery complaints erode trust in a medical/health context.
High upside resides in retention (activate email list), subscription/replenishment models, SEO, and B2B channels.
Challenges Identified
Data inconsistencies: customer vs orders numbers and revenue-from-orders mismatch (e.g., 1,499 orders × €50 AOV = €74,950, which differs from the reported annual revenue €68,390). Require reconciliation.
Reputational risk: unresolved negative Trustpilot reviews indicating delivery and communication failures.
Unknown CAC & ad performance: inability to evaluate scale and sustainability without ad account access.
Dropship fragility: reliance on external suppliers can cause fulfillment breakages and longer lead times.
Underleveraged email list: large list but low repeat order activity missed opportunity to boost LTV.
Regulatory and product risk: medical claims and product safety standards must be validated.
Recommendations
Immediate due diligence requests (ask seller):
Full P&L, merchant (Stripe/PayPal) and bank statements for the past 12–24 months.
Shopify admin access (read-only) plus GA & Klaviyo access.
Ad accounts (FB/IG/TikTok) and CAC/ROAS history.
Supplier contracts, lead times, fulfillment SLAs, and proof of compliance for medical/health products.
Detailed order CSV (last 24 months) including shipping origin, fulfillment method, refunds, and chargebacks.
Customer support logs / ticket history and a timeline of Trustpilot complaints and responses.
VAT returns and any relevant tax filings for Germany.
Operational & growth moves (post-acquisition):
Immediately execute a reputation cleanup plan: respond to negative reviews, identify root causes (supplier vs internal), and institute SLA penalties with suppliers if necessary.
Activate segmented email flows (welcome, replenishment/subscription, win-back, VIP) to raise repeat purchase rate and LTV.
Test subscription model for compression socks (3–6 month replacement cadence).
Expand into B2B channels (clinics, physiotherapists, sports teams) for larger order sizes and lower CAC.
Improve site product pages with clinical evidence, sizing, and video to reduce returns and increase conversion.
Implement a structured CRO program to lift conversion rate (A/B testing hero, checkout friction, shipping messaging).
Conclusion
Overall, this turnkey online store is a lean, profitable eCommerce asset with strong margins and multiple levers for growth (email monetization, subscriptions, B2B expansion, SEO). Its primary weaknesses are operational transparency and reputation, not product-market fit. On paper the asking price aligns with conservative multiples, but the deal requires thorough verification, especially merchant statements, supplier reliability, shipping origins, and customer service performance before a final offer.
