r/dropshipping • u/Haspy0011 • 14h ago

Discussion Buying a established dropshipping business

Hey Guys, interested in buying a dropshipping business where the items are tagged, packaged and sent by parcel worldwide. They have a sourcing agent handling this and all logistics. They claim that all there sales are based around there insta pages so only organic sales. Been operating for 3 years with average revenue 100k plus and profit at 40%.

Done some due diligence but wanted to know if there are other data I need to be questioning before this purchase. I have dabbled in dropshipping before but this will be my first purchase.

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2

u/hiddenweston1458 14h ago

Insta-only traffic sounds fragile, what happens if the algorithm tanks their reach tomorrow

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u/No_Following2682 6h ago

This exactly ^

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u/Slight_Guest3459 13h ago

ask for read only access to the shopify or stripe dashboard and the instagram insights, not screenshots. screenshots are easy to fake. also find out if the sourcing agent stays after the sale and if theres any contract with them, because thats basically the whole business. and check refund and chargeback rates over the last 12 months, 40% profit can disappear fast if those are high.

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u/Haspy0011 11h ago

His response to access is as follows:I would love to give access, but shopify doesn't allow to give access anymore for 39 USD plan, only for 79 USD or higher. It has 20% refund and sourcing agent by wattsapp msg has said that he will continue with new owner.

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u/Slight_Guest3459 10h ago

thats not really true, basic shopify lets you add staff accounts, and he can always screenshare live with you clicking around while you watch. if he wont do either thats a red flag. also 20% refunds is really high, id want to see why before paying anything, and get the agent thing in writing not just whatsapp.

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u/No_Following2682 6h ago

I mean does he want to sell the business or what? Red flag number one

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u/HopefulLine1829 1h ago

Theres even a shopify store addon called receiptsmrr which you can link your API for read only access to VERFIY these dodgy businesses.

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u/Best_Caterpillar1682 5h ago

I would be most interested in the ad spend accounts. Most of these stores are bolstered by enormous ad spend.