Overview

Original-Fashion.Store is a UK-based, fashion-focused Shopify business operating on a dropshipping model. The store specializes in testing and scaling apparel and accessories through Google Shopping ads, achieving €1.8M in revenue over its 12-month operation. The business relies on outsourced fulfillment via a Chinese supplier and a remote team handling product research, listing, dispute resolution, and ad management. The company employs a fail-fast methodology, launching up to 50 new products daily, quickly scaling successful items while discontinuing underperformers.

Despite the impressive revenue numbers, the business's valuation metrics suggest underlying risks:

• Profit Multiple: 1.0x (Very Low – Indicates Weak Stability or Short-Term Challenges)

• Revenue Multiple: 0.2x (Extremely Low – Suggests High Customer Acquisition Costs or Declining Growth)

Additionally, severe customer dissatisfaction (100% negative Trustpilot reviews) and operational risks warrant further investigation before proceeding with an acquisition.

Key Insights

Website Performance & Metrics

• Website Speed: Moderate (no reported issues but needs deeper performance testing).

• Product Variation & Number of SKUs: High volume of SKUs (launching up to 50 new products daily).

• Average Order Value (AOV): €62.00 (suggests mid-range pricing).

• Customer Lifetime Value (LTV): Unclear due to lack of repeat purchase data.

• Repeat Customer Rate: Unknown, but negative customer reviews suggest low retention.

• Website Conversion Rate: Needs verification; estimated at ~2.25 page visits per session with a 48.18% bounce rate.

• Website Design & Presentation: Well-structured navigation with gender-based product segmentation.

• Brand Positioning & Customer Sentiment: Poor reputation due to fraud accusations, undelivered items, and poor product quality.

• Marketing & Efficiency: Primarily Google Shopping Ads (~80% of sales), with email marketing contributing ~20%.

• Customer Acquisition Cost (CAC): High due to reliance on paid ads.

• Scalability Potential: High in theory but limited by poor customer retention and reputation damage.

• Product Offering & Marketing Angle: Aggressive testing strategy, but low product quality and misleading imagery undermine trust.

Financials

• Annual Revenue: €1,876,837

• Annual Profit: €343,331 (18% margin)

• Monthly Revenue: €156,403

• Monthly Profit: €28,610

• Revenue & Profit Trends: Growth spiked sharply in December, potentially due to holiday sales rather than sustainable business growth.

• Multiples: The business is priced at an unusually low 1.0x profit multiple and 0.2x revenue multiple, indicating either urgent seller motivation, declining revenue, or hidden risks.

Marketing (Paid & Organic)

• Primary Paid Channel: Google Shopping Ads (high dependency).

• Organic Traffic: Unclear, likely minimal.

• Email List: 74,861 contacts (good potential for retargeting).

• SEO & Content Strategy: Appears minimal—no evidence of strong organic branding.

• Influencer & Affiliate Marketing: No mention of partnerships, a missed opportunity.

Operational Efficiency

• Supplier & Fulfillment: Outsourced to a Chinese supplier.

• Automated Order Processing: Direct sync from Shopify to supplier.

• Customer Support: Managed by a remote team in Bangladesh.

• Return & Refund Process: Extremely poor—multiple complaints about unresponsive customer service and undelivered refunds.

Customer Data & Relationships

• Total Customers: 75,327

• Repeat Business: Unclear but likely very low based on negative reviews.

• Trustpilot Reviews: 100% 1-star reviews (6 total)—major red flag.

• Customer Service Complaints: Fraud allegations, non-working customer service contacts, refusal to process refunds.

Legal & Compliance Due Diligence

• Seller Transparency: The seller has not disclosed any legal disputes but multiple customers have accused the brand of fraud.

• Compliance with UK/EU E-commerce Laws: Risk of regulatory scrutiny if return and refund policies do not meet consumer protection standards.

• Payment Provider Health: High dispute rates could lead to PayPal or Stripe freezing funds.

Challenges Identified

Poor Customer Satisfaction & Brand Reputation

• All Trustpilot reviews are 1-star, citing product misrepresentation, failed deliveries, and nonexistent customer service.

• High refund dispute rate—risk of chargebacks and payment gateway issues.

• Reputation damage makes it difficult to scale through organic traffic or brand loyalty.

Over-Reliance on Paid Traffic

• Google Ads drives 80%+ of sales, making the business vulnerable to ad cost fluctuations.

• No clear strategy for long-term customer retention (email marketing is only 20% of sales).

Lack of Sustainable Differentiation

• Dropshipping model means no control over product quality, fulfillment speed, or inventory stability.

• High SKU turnover (50 new products/day) suggests a lack of brand consistency or core identity.

Financial Volatility & Potential Misrepresentation

• Revenue and profit spiked in December, raising concerns about seasonal dependency or manipulated reporting.

• 1.0x profit multiple & 0.2x revenue multiple indicate low buyer confidence or hidden operational inefficiencies.

Legal & Compliance Risks

• Accusations of fraud and missing refunds could lead to regulatory scrutiny.

• Potential PayPal/Stripe account suspensions due to high dispute rates.

Recommendations

Conduct Direct Seller Inquiry Before Proceeding

• Request detailed revenue & profit data for the past 12 months (to verify December's spike).

• Clarify customer acquisition costs (CAC) and retention rates.

• Confirm refund & chargeback rates—high dispute levels could threaten long-term viability.

• Ask why the owner is selling after just one year.

Assess Turnaround Potential

• Fix brand reputation by resolving pending disputes, issuing refunds, and improving product quality.

• Diversify traffic sources—expand into SEO, social media, and influencer marketing.

• Improve retention by strengthening email marketing, offering discounts for repeat buyers, and reducing reliance on first-time customers.

Evaluate Risk of Chargebacks & Payment Freezes

• Investigate PayPal/Stripe account health to ensure continued access to payment processing.

• Consider transitioning to a hybrid model (dropshipping + in-house fulfillment) for better product control.

Conclusion

Risk Level: HIGH

While Original-Fashion.Store presents a high-revenue, systematized business model with automation potential, its poor reputation, lack of customer retention, and reliance on paid ads create significant risks. The low 1.0x profit multiple suggests hidden issues, and the fraud accusations could lead to legal or financial liabilities.

🚨 Final Recommendation: Proceed ONLY IF:

• Seller provides proof of revenue stability and chargeback mitigation.

• A clear strategy for reputation repair and organic marketing growth is implemented.

• A contingency plan for supplier or payment processor disruptions is in place.

Otherwise, the risks outweigh the benefits, and the acquisition may result in operational and legal headaches rather than long-term profitability.