The business provides a chrome extension for Poshmark sellers with a suite of tools to help grow their sales and organize their online closets. The extension comes with features such as automatically following other sellers and sharing your products to buyers, drag-and-drop closet organization, automatic captcha solving, special offer creation for multiple items, sharing to “Posh parties”, configurable product sharing speed with daily limits to prevent bans, and more – all within a user-friendly interface.
Users
Almost all users are from the US and Canada, mostly coming from organic search results (Google). The closest competitors are multiple times larger and also more expensive for the user to subscribe to and use. The current owner hasn’t actively marketed the business aside from SEO so there is a lot of room for growth.
Asking price reasoning
This business has generated $3,000 in TTM profit and $400 in profit in the past month alone – an 85% profit margin. There is huge room for growth and the business is also almost entirely passive – requiring very little effort to run. All revenue is currently recurring, providing even more cash flow for the owner. With the profit generated, growth opportunities, and social accounts the business is fairly priced at 3.5x the TTM profit ($3k) and 2.5x the current MRR ($360).
Expenses
The primary expenses are the captcha solving API and the Webflow subscription – $60/mo combined. By moving the site over to a static host, the expenses can be halved. Hosting costs $4 a month on firebase, bringing the combined expenses to arond $64 each month.
Growth opportunities
The current owner has not actively marketed the business aside from some simple SEO improvements. The product is much cheaper and easier to use than competitors, so by getting it in front of more potential customers, the likelihood of revenue growth is incredibly high.
Currently, the majority of traffic comes from Google search. By focusing on improving the current SEO setup and creating additional pieces of content within the blog to target lucrative keywords, it should be straight-forward to increase this stream of organic users.
As for the pricing, the subscription prices are much cheaper than the competition, so there is definitely room to increase prices and grow revenue. New features could also be added to a more expensive plan to upsell to users.
Reason for selling
The business owner has a lack of time to work on and grow the business due to a new, more demanding job.
Competitors
Tech stack
- Database: Google Firebase
- Functions: Firebase Functions
- Auth: User + Pass with Firebase
- Chrome Extension: JavaScript, HTML, CSS
- Blog: Webflow CMS
- Captcha API: 2Captcha for CAPTCHA solving
Additional Notes
There is a lot of revenue potential in this SaaS, and the owner has asked me to purposefully price it at a low price point as he would like somebody else to take over it.
If you have any more questions, ask me!
