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I Sold My Drop Shipping Store for $60,000

It's been a crazy journey with dropshipping. I started my first store exactly three years ago and today, I'm officially out of the business. This post is going to answer all of your questions about how and why I sold my store, how much I actually sold it for, what I would do differently if I started over, and the real truth behind if drop shipping is a good business or not.

This post is going to answer all of your questions and show you exactly how I went from not even knowing what ecommerce where I am today, sixty grand richer, and a heck of a lot more experienced. Here's what I'm going to do next, what I'm going to do with the money and what I'm going to do with my other stores.





Selling My Dropship Store:



The highest offer I got for selling my store was actually a bit more at $65,000 but came with the requirement of needing to spend 80 hours to train the new store owner which I don't have the time or patience for. Luckily, my friend who's in my mastermind accidently told a few people I was in the process of selling my store and found me a new buyer.

The guy who ended up buying my store is actually a member of Anton's course and already has a successful store on his own. I knew that since he was already familiar with Anton's method, Shopify, Google Ads, and fulfilling orders, it would be a relatively simple transfer and it was. Instead of taking 80 hours to train the new buyer, explain to him how dropshipping works and how to use everything, it only took us 5 hours total spread over the past week and a half. We started the transfer on May 8th and just finished yesterday.

I'm really happy to see that sales have still be consistently coming in even after switching everything over to his accounts which was kind of a pain but well worth the effort.



Consistent sales from the store after the transfer


Total Price and Profit:



Since the first buyer would have been a huge headache, I decided to take another buyer's offer of $60k minus fees which ended up being $57,635.00 deposited into my bank account. The price was calculated using a 27X monthly profit multiple which means I'm getting paid for 27 months (2 years and 3 months) of profit upfront for the sale of the store. If you do the math, this store made a bit more than $2,000 in take home profit every month after all expenses on average. Our best month ever was a bit over $4,000 while our worst month was just around $1,000 in profit.

In the 2.5 years I've ran this store I've made a total of $80,636.54 in profit plus the sale price of the store giving me $138,271.54 which is pretty crazy as I started this store for less than $1,000 total including buying Anton's course, paying for hosting, domain name, etc. It's especially crazy that I've never had to buy a single piece of inventory since everything is dropshipped. Our total revenue was over $800,000 which is pretty insane as that's well over a quarter million dollars a year in sales.

The thing I'll miss the most from running this store is the crazy amount of travel miles I've been racking up just fulfilling orders and paying for ads.





Why I Sold the Store:





Future Dropshipping Plans:



I've completely walked away from this store which means I no longer have any ownership it in at all and have already gotten paid. While I technically didn't sign a no-compete or non-disclosure agreement but out of respect for the new owner, I'm never going to start another store in the same niche or publicly talk about it as he's a great guy and I wish him all of the success in the world.

His goals with the store are to change the theme to make it mobile responsive and turn on mobile advertising. He's already started getting close to the suppliers and since he's a smart guy that's super easy to like, they are going to continue the relationship with him and not approve more online only competitors which is a great thing for him.

As for me, I'm going to take a few months off to chill out and relax this summer in Europe. My goal is to be able to go on a 12 Day Mediterranean cruise with my parents and sister without worrying about not having internet access. I'd also really like to volunteer in Nepal and eventually make the 30 day walk across Spain via the Camino de Santiago. The only businesses i'm going to start until then are going to be completely digital and passive.

But, keep an eye out on the blog as my plan for November is to invite a group of ten interns or partners to start stores together with the sole intention of selling them after they are built and show profitability for 6 -12 months. More details will come after this year's dropshipping retreat in October but the requirement will be you either need to be a part of Anton's course or have have proven yourself with a profitable store. If you haven't' started yet, what are you waiting for? I was completely broke just three years ago and now I have more money than I know what to do with.








Why I'm Sharing This:



Two and a half years ago when I first wrote my start here post, I was still torn whether or not to share my success with dropshipping or to keep it a secret. Most people keep it to themselves as they don't want to attract unwanted attention or competition and trust me, you get a ton of both. Just by writing this post and not keeping the sale of the store to myself, I'm going to be a ton of hate mail and people saying things like "see dropshipping sucks, even johnny's getting out of it." 

Those people are idiots. I wonder how many of them have been following my journey for over a year or even worse when I first started and realize how much money they've left on the table by not following my advice to do the same. There are a tons of pros and cons of dropshipping, there are just as many for every business out there whether it be working for a boss, starting restaurant, getting into amazon fba, or even being a programmer. If you didn't watch the "why i'm selling my store" video yet, scroll back up and watch it as it'll explain it in detail.

I total I've sold to and served a total of 1,450 customers which the majority were super happy that they bought from us as they received their product super quickly as we ship direct from the manufacture. Customers loved us and the product they received enough to leave positive reviews and reorder multiple times which really shows how satisfied they are. 





The hard facts are, I am now $138,271.54 richer from the monthly profits and sale of one dropshipping stores. 

That doesn't count the other store I still have, (and plan to keep) the knowledge I've learned from starting the business or the income I've generated from my other passive income sources since. I'm so glad I never listened to nay sayers or people who have gave up, failed or worst off, people who never even really started as there's a good chance I'd still be completely broke like i was just a few years ago before I started dropshipping.  

If I had listened to people who have never done it themselves, and let the crabs in a barrel pull me down into their unhappiness I'd still be broke today. Instead I followed my heart, put in the work and ended up much better off financially that I ever could have dreamed of. 


My bank statements from 2013 and 2016


Final Thoughts:



Dropshipping is not easy but it's worth it. Starting a dropshipping store is similar to starting ANY business as in it takes time, money and effort. However, what's incredible about the drop shipping model is the fact that you can do everything from your laptop where ever you are in the world, you don't have to pre-purchase any inventory, sign a 12 month lease, buy equipment or any of the other requirements of starting a physical business.

In general starting a new store takes around 2 months, which I documented in my 30 Day New Store Challenge when my girlfriend at the time and I started a store together last year, is currently worth $64,784.07 if we sold it tomorrow.

Ask me if 2 months of extremely hard work, followed by a few hours maintenance a week afterwards is worth over $2,000 a month in profit and $60k whenever I decide to sell it and I'll tell you if you offered that to me when I was broke, I would have done anything and paid anything for that opportunity. This is why I share my journey, this is why I've spent countless hours helping other people get started. This is why I still recommend Anton's dropshipping course as the best starting point for people to start their first business. 



Update:


Listen to the episode I just did with Anton himself where we talk in detail about selling the store, how it all started, and future plans.





If you want to know more here's a ton of info:



Listen: Episode 10 - The Man Who Made Me Rich


P.S. if you have a decently popular podcast or know of someone who does, I'm more than happy to come on as a guest to share my journey and answer questions! Email me at media@johnnyfd.com

Everyone else, if you have questions, ask me in the comments below! 


Warm Regards,

Johnny FD


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Post a Comment

  1. Nice one! Glad to see you pulling this off and see how your goals changed over time. Still crazy what three years can do!

    ReplyDelete
    Replies
    1. Hey thanks! Three years both flew by super quickly as well as feels like it was just yesterday. Life changes quick!

      Delete
    2. hey johnny, just wanted to say hi. i've only recently found your website and will be coming for the nomadsummit next year

      Delete
    3. Hey Hung, looking forward to seeing you at the 2017 Nomad Summit!

      Delete
  2. How did you originally find a buyer for your site? I recently sold a website on flippa.com but people generally only pay 8x - 10x monthly profit, so hearing you selling for 27x monthly profit is crazy to me. Interested to know how to find buyers

    ReplyDelete
    Replies
    1. Hey congrats on selling your site. Honestly 8x-10x is really low. On average most dropshipping sites sell for between 18X-30X monthly profit but a lot of it depends on the quality of your site, repeat customers, sales vs. refunds/chargebacks, quality of suppliers, etc etc.

      If you have a super high quality store/sales track record, like the one I built following Anton's course, you can get 18-27X wherever you sell your store. But in general I would go with either a private broker or with Empire Flippers, as Flippa usually attracts, cheaper, lower quality buyers.

      Delete
  3. Hey Johnny!

    Im super excited for you brother, you deserve it!

    I hope I get to be a part of your ten interns or partners to start stores together to sell them after they are built and show profitability, :D. I joined Anton's course about 2 months ago with my friend and we are now negotiating deals with suppliers. It's super exciting!

    Thanks for the post again Johnny!

    ReplyDelete
    Replies
    1. Hey Daniel, happy to share Daniel! Good luck getting those suppliers on board! If you ever get stuck feel free to ask me anything in my progress thread on Anton's forums!

      Delete
  4. Congrats, good sale and glad it went smoothly.
    I'm also selling my dropship store, price is quite a bit more (around 180k asking price) if anyone is on the look out drop me a message. Max (at) online click.co.uk

    ReplyDelete
    Replies
    1. Nice Max! Good luck selling your dropshipping store! What's the 12 month average months profit or multiple? You'll have to pop some champagne once you get your $180k check!

      Delete
  5. As a follower of yours for months, I think you made the right decision. I thought to myself, if you're making most of your money from affiliates marketing you should definitely focus on that. It's unfortune to hear that you're moving to europe since I wanted to meet you in real life so bad! Hope I'll have the chance to catch in June.

    ReplyDelete
    Replies
    1. Hey Snir, you'll love Chiang Mai either way! There's a great community here. Just check out my guide to CM on how to get settled in: www.johnnyfd.com/2015/07/johnnys-guide-to-chiang-mai-thailand.html

      Delete
  6. That's awesome, Johnny! I'm interested in being one of your interns this fall. I'll be starting Anton's course this summer, so I'll be ready to make some $$$ with you.

    ReplyDelete
    Replies
    1. Oh and my email is willyzook77@gmail.com. Hit me up, Johnny!

      Delete
    2. Hey William, keep an eye out on the blog for whenever I announce it! It'll make sure to do it at least 30 days before it starts so people can make travel plans. But don't wait for me to get started! Build your store!

      Delete
  7. That's amazing Jonny, well done. Life must be good!

    ReplyDelete
    Replies
    1. Thanks Anthony! Taking a well deserved break!

      Delete
  8. Buying a dropshipping store, for me, sounds more appealing than making one from scratch. Hope you have plenty for sale.

    ReplyDelete
    Replies
    1. It's definitely easier but it's a good idea to start one from scratch too as you learn a ton in the process.

      Delete
  9. Hey Johnny, congrats on the sale. I too would be looking to potentially sell my Supplement brand, where do you recommend buyers? x27 monthly is very good :)

    ReplyDelete
    Replies
    1. Hey awesome, I would list it with Empire Flippers

      Delete
  10. Congratulations Johnny, I hope we can stay in touch I´m interested in what you are thinking about.

    ReplyDelete
    Replies
    1. Just subscribe to the email list, I'll blast out anything important on there =)

      Delete
  11. Awesome news Johnny! It's great to follow you on your journey to a better life while sharing your ups and downs. I'm currently working through Anton's course and hope to have a store up and running in a couple of months.

    You're a great inspiration and I hope to be in your shoes one day. I'll be on the lookout for your internship or partner program.

    Thanks again for sharing this inspirational news!

    ReplyDelete
    Replies
    1. Hey Jopeel, really glad to be able to show my ups and downs and progress! Ask me anything in my progress thread on Anton's forums! Best of luck with your store!

      Delete
  12. Hey Johnny
    I would love to become an intern for a drop shipping store.

    Look forward to seeing when you make it available

    ReplyDelete
    Replies
    1. Keep an eye out for the official announcement in October =) In the mean time, keep crushing it!

      Delete
  13. Many congrats Johnny, have recently started following you, reading your blogs and listening to the podcasts and I think they are great and really inspiring. I'm currently trying to decide whether to start my ecommerce journey with FBA or dropshopping but will certainly be trying to read and listen to as much of your site as possible.

    If you're ever passing through Mexico City let me know!

    ReplyDelete
    Replies
    1. Awesome Martin, either way, best of luck and hope you crush it!

      Delete
  14. Congrats Johnny! Would love to be apart of the project!

    ReplyDelete
    Replies
    1. Awesome Kia! Keep an eye out on the blog for details!

      Delete
  15. Johnny, what is your suggestion for the best app or program to use for accounting? I'm assuming you used your Shopify store and google analytics to prove revenue but I'm curious which accounting software you use to keep track of expenses. Quick books online? Thanks in advance for your advice.

    ReplyDelete
    Replies
    1. Hey Trevor, I just used google sheets and my Filipino VA to update. Then I gave the buyer my credit card statements (use a different card for each store) to prove expenses.

      Delete
  16. Please how can I get the arton's dropshipping course? Ii would be pleased if you can send me a link to purchase the course.

    ReplyDelete
    Replies
    1. You can sign up for his course at www.AntonMethod.com

      Delete

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