 What's going on guys and welcome back to another video. So in this one, I want to show you a Shopify store that's currently for sale on Flipper.com for 400,000 US dollars. It is one years old and it turns over a profit every single month of $8,000. When you value a business, the ballpark numbers are usually 2x what the annual profit is. So when you put that into comparison, you could say that this business is overvalued by 100%. However, in this video, we're going to be jumping into the numbers, we're going to be jumping into the products, we're going to be jumping into the ads that they're running and I'm going to let you make your mind up. Do you think this business is worth 400,000 US dollars? So let's start by taking a look at the numbers. This is the primary expenses. Every single month, they spend an in and around $12,000 on advertising and then to fulfill their orders, they're spending nearly 20,000. What's really interesting about this store is it is still current and still active and bringing in a very healthy income. So March of 2023, of course, last month, it made a profit of $25,000 with a turnover of $55,000. However, if we have a look at the month before, they had a revenue of 8,600 with a profit of negative $12,000. Now you might be thinking, well, what the hell are they selling? How on earth did they go into 12k negative? Before we jump on to the Shopify store, I want to give you some background and some contextual information about who they are. So presenting Scont Living, an exceptional e-commerce venture in the flourishing home and garden sector, generating the impressive annual revenue of $300,000, coupled with a remarkable 40% profit margin. Scont Living's robust paid marketing strategy has culminated an average row S of 10x, which to be honest is pretty ridiculous. Even some of my best ad sets have a three to four. So for these guys to be getting a 10x, it must say a lot about the types of products that they're selling and to show you some more information on that. So this is the store as an overview. This data is pulled directly from Shopify. So the seller, the seller is unable to edit it. 1,500 customers from May 26th of last year to April 14th of this year. Total sales of $270,000 USD and $350 orders, only $350 orders. Now what you may have noticed is their average order value is $776. They are not selling cheap products. So let's jump on to their Shopify store and take a look at exactly what products they are selling. Now, unfortunately, what is annoying is I can't see what their best sellers are. However, I have been able to track down the ads, the Facebook ads that they're running. So we'll be able to see which products they're pushing. If we go back to the structure, we can see that the theme they're using is impact. So a really professional and modern looking theme and store in terms of the imagery, that sort of thing they used. Definitely looking at this, just the images that are scrolling across. And this nice little touch with the cursor. So this is my cursor that I'm moving side to side. And what you can see is actually a timer function on that. And when it hits zero, that's when the image changed. So just a pretty cool function and feature are there of the store. Looking at the images though, you probably agree just on the types of images they use. You wouldn't expect them to be selling cheap, plasticky products drop shipped from China. They are indeed selling quite expensive luxurious products just like this sofa and this chair that you're seeing here. So these guys are not, at least to my knowledge, drop shipping from China. They're not getting sofas and chairs and things like that shipped over. I'm from AliExpress. They will most likely be working with local and private independent companies that are selling these products. And they've probably contacted them, maybe even gone in store, certainly spoken to the managers, if not owners of those companies and said, hey, would you mind if we advertise your products on our store and any orders we'll get, we'll obviously ask you to ship it direct to then that customer. Before we go any further, then let's jump onto the ad library and see what kind of ads these guys are running. So all I've done is put their name in. And as we can see, it's the same name with the same logo. So we know it is indeed the same people. And the most popular product seems to be this Scandinavian style type chair. So what I'm going to do is head back into their best sellers and actually find this chair, which they're advertising. And it looks like it is indeed all on one listing. And in fact, here you can select the different color variations of your choice. For all intensive purposes, this is the product. This is their winning product, because they seem to be advertising this product more than any others, apart from, in fact, this coffee table. So we'll track that down in a second and see how much they're selling that for. But what we can see is they're selling this Phil Hemaner chair for five hundred and forty eight pounds, which is give or take about seven hundred dollars. So that kind of matches and marries up with what their average order value. So I would guess that this is the best selling product. So everything is very clean. Everything is very modern and professional, easy drop down. So the consumer can see all of the information that they need to know. They're not hiding their delivery times or they've got the dimensions clearly upfront and honest. So all of the potential questions that consumer might have about this product and it's easy to find the answers to them. They also have Clanner installed, which I think is super important for a store like this that selling these expensive products. Not everybody has five hundred and fifty pound to dump in one go on a chair in comparison to the amount of people that can say make three payments of one hundred and eighty pounds for a chair. Moving down the product page, then they have their shipping policy return policy, which is a 30 day money back guarantee. They have some more recommended items, which are of a similar style. They're selling this Astrid chair for eighteen hundred pounds. And as you can see, no looks reviews installed. It's obviously not that type of store at the bottom. They have lots of different contact information, including their physical address, which is based in London. They have a live chat option. They have a branded email address. And of course they have a telephone number. All these things, obviously, when you're selling these expensive products are imperative trying to get somebody to spend eighteen hundred pounds on one single chair without a single phone call. It's probably going to be quite difficult to do to their creatives, though. And what you see, what you get is just a single image ad. It is a dynamic ad. So there's many functions, many functions, versions. That's what I'm looking for. There's many versions of this ad all that kind of fit under the umbrella of Scandinavian style furnishings. So I'm guessing what they're doing is just running these single image ads, which are typically a lot cheaper to run versus video ads. And they're just letting them run and run and run on relatively small budgets. And they're probably getting customers at a slow pace, maybe three, four or five customers a week. However, when you're selling expensive products like this, you don't expect to be shifting, say, 50 of them on a daily basis, like you would a twenty or thirty pounds dog color or bike light, something along those lines. Let's head back to the best seller's answer if we can find that coffee table. So seven hundred and forty five pounds on a chair, one forty five and a light. As you can see, like in its individual terms, each product is a very, very nice product, five thousand pound bed there. And you never know who you're going to come across. They might see that and think they just have to have it in five thousand pounds. There's not a lot of money for them to dump on a bed. And I don't know what their profit margins in that, but let's say they're working on 50 percent. So the bed costs them two and a half grand for two and a half grand, which is what their margin is to spend to acquire a customer for that. You can reach people in the millions for that sort of money. So that's probably how they're able to make it work and get a 10 X return on their money. So I managed to track down the coffee table that they were advertising. Eight hundred and eighteen pounds, the same product page layout, recommended products, that sort of thing. Obviously a very, very expensive product for what it is. But again, going back to that kind of high ticket marketing strategy that you can afford to use. If they're working on a 50 percent margin, they can afford to spend four hundred pounds to acquire a customer. If you work on a basis of sort of like five pounds for a CPM, then if I've done my math correctly for about four hundred pounds, you can reach 80,000 people give or take. So to find one person in 80,000 that would be willing to buy this coffee table. They're obviously able to make that work. And so with that being said, the guys, I think I'm going to wrap it up. I think I've covered everything I wanted to just kind of summary of the store. Obviously, what these guys are doing is they're working with private independent companies that manufacture and probably keep stock and maybe even have a showroom for some of these products. And they probably developed a relationship with them and said, look, we're pointing together that this store, this is our brand, that this is what we're about. This is what some of the other products we're selling. We really think your pieces of furniture would fit really well. Can we put them on our store? Can we help you sell them? Can we advertise them? And then when they do, obviously, they go into that private independent company and buying it from there. And they may even be getting them to ship it direct to the consumer as well. And so with that being said, that is today's video. Hope you guys enjoyed it. Hopefully I've sparked some new ideas to help you in your dropship and journey. Any questions or anything else I can help you with, just post it down below. I read every single comment, so I will get back to you. Thanks again for watching, guys. I'll see you in the next video on Wednesday. Cheers.