$1Million+ e-commerce business for $1,000
July 10th, 2008
Payhalf.com: $1Million+ e-commerce business for $1,000 - No RESERVE
Payhalf.com is a US based online retailer in the consumers electronic market.
The Payhalf.com team developed a strong e-commerce platform, online marketing, fulfillment and development channels. The site’s results speak for themselves:
Payhalf.com took in over $1MM in retail orders from it’s launch
With key-relationships with major US manufacturers and distributors, Payhalf.com features a product selection of over 250,000 items without any outlay of cash tied to inventory.
Payhalf.com built its own custom, enterprise class solution from the ground up. The technology is modular and can be expanded upon. It is Web 2.0 ready with a well thought out flow and timely social networking features in the planning. The Payhalf.com platform was built by a first class development & design team at the tune of over $1MM in development costs.
Consumer Electronics sales in the US alone generated $23.9 billion in sales in 2007 second only to Apparel and accessories. With Climbing gas prices, rising labor costs and higher interest rates, the retail industry sales growth is stagnant at 2.2% compared to e-commerce growth as high as 32.6%.
Payhalf.com with its vast product selection and “big box” online retailer appeal feeds this consumer group’s hunger for technology. By offering flexible payment options Payhalf.com offers and edge to shoppers at a time where credit is scarce. (half now, half later, through a third party vendor “Bill me later”)
Organizational and Technology assets:
Traffic stats: Payhalf.com generates over 10,000 unique monthly visitors
(All “Type-in” & organic traffic - See Google analytics report)
At an average cost of $.50 per click the traffic generated is valued at $60,000 per year.
Payhalf.com is heavily indexed by Google
http://www.google.com/search?hl=en&q=payhalf.com&btnG=Google+Search
June Stats
Powerful branding & high value domain name portfolio
In addition to attracting 120,000 unique visitors annually, the Payhalf.com brand offers the opportunity for expansion beyond the US market. With it’s international domain portfolio the Payhalf.com brand can be expanded worldwide, “turnkey” without the expense and hassle of securing each domain in it’s respective country:
The Payhalf.com domain portfolio includes:
Payhalf.com
In addition to it’s powerful branding, Payhalf.com has a strong competing interest in the name from A&E Stores, Inc. A&E Stores, inc trades as PayHalf Stores at 100 locations throughout the East Coast. A&E reported earnings of over $125MM per year since 1991. The value-priced apparel stores occupy spaces of 3,000 sq.ft. to 15,000 sq.ft. in specialty, strip and value centers and urban/downtown areas. Plans call for 15 to 20 openings throughout the existing markets during the coming 18 months. Typical leases run 10 years with options. A vanilla shell and specific improvements are required. Preferred demographics include a population of 60,000 within three miles earning $65,000 as the average household income.
The current online presence for A&E Stores is located at www.payhalfstores.com
The strong branding associated with Payhalf.com along with it’s international domains and strong interest from competing brick and mortar retailervalidates the high value of the domain name portfolio. This digital real estate asset has also caught the attention of international branding companies.
The Payhalf.com mark is clear of any infringements. Payhalf.com has use to the mark since it started using it commercially in 2006.
The Payhalf.com domain portfolio has appraised as high as $550,000 (see appraisal docs)
Pay.com was listed at $2,250,000 in May 2008
Technology Asset:
Enterprise class proprietary platform
Social shopping Web 2.0: Barter platform & Classified listings platform in planning stages
Online Community Platform
Integrated product feeds with all major price comparison search engines:Pricegrabber, shopzilla.com, nextag.com, Ebay
Affiliate programs: Custom built affiliate platform with private labeling
Order Tracking/Status: Real time update tracking of orders
Unique Customer Service Interface: Custom built CRM application - Was integrated with 3rd party call center
Custom built wish list: User can create and save wish lists by selecting individual items
Saved Shopping Cart: Users can save their shopping cart and complete their purchase later
Internal email software manager
The technology is modular and can be expanded on or licensed. It is Web 2.0 ready with social networking features built into an enterprise class solution.
Barter section to where users can list items and barter for free or a fee
Classified section similar to craigslist.
Merchant control center where users can import items from ebay and other sites.
Community section customized in phpbb
Reasons for selling: Victim of it’s own success:
Simply put, at the time of it’s launch, Payhalf.com generated more business then it was able to handle. In an effort to rush to market to capitalize on the Holiday season, it bypassed a vital “Soft launch” necessary to work the initial operational issues. The volume of order created a backflow of customer service issues due to the fact that at the time of launch, the inventory synchronization with it’s key suppliers was not fully automated.
Operations were suspended in mid 2007 with the intent to resume. The management team was hired onto another popular project in the social networking space. Thus Payhalf.com was shelved.
KEYS TO SUCCESS
In order to take Payhalf.com to the next level, the new owner needs to address the following:
Complete real-time integration with fulfillment partners using XML feed
(Feeds previously were in a flat file format which led to discrepancies with live inventory from Payhalf.com suppliers)
Fully outsource the customer service on a “pay per call basis” with no fixed overhead
(We will provide supplier information)
Establish a “soft launch” strategy to work all operational issues before increasing sales volume.
Establish relationship with key-suppliers (we will provide supplier information)
Establish Credit Card merchant account and Paypal account
Update product feeds to price comparison search engines
Establish an affiliate program
FUTURE GROWTH
Future growth of the site will be attributed to its continued access to industry leading products and prices, and the continued expansion of the client database and associated brand awareness.
The company has established an affiliate network to allow affiliates to private label and co-brand their own stores. They also built web 2.0 capabilities into the site to benefit from the social networking trends.
The company has established live feeds with most major price comparison search engines and directories such as: Pricegrabber, shopzilla.com, nextag.com, Ebay
The company could expand by establishing a membership program to generate residual income:
- Customer loyalty or rewards programs
- Newsletters and monthly specials
- Hire Pay Per Click Management Company
- Start a Public Relations push
- Add more resellers
- Add reciprocal link agreements with non-competing businesses
- Additional Search Engine Optimization on key search terms
Continued efforts will result in more sales channels and grow yearly revenues.
Assets:
Payhalf.com Domain Name Portfolio: >$500,000
Payhalf.com Technology: >$1,000,000
Year Established: 2005
Cash invested into the business: >$2.5MM
Employees Needed to operate: 2-5
Relocatable: Yes
Assets Transfer: Domain name and technology transfer only - You will need to host on your own server.
Support/Training: None - Asset sale - Consulting Negotiable
Average Sales Transaction: > $250
Key supplier information: Access the largest drop-ship warehouse and distribution companies (Same used by Buy.com & Amazon)
This is a highly streamlined business with no fixed overhead, that operates 24/7 and is highly AUTOMATED
Operate from anywhere in the world with an internet connection
Each Payhalf.com asset of its own is of great value.
The domain name portfolio whereas used in it’s current form or applied to a new concept, offers a powerful branding opportunity with immediate worldwide expansion potential, all turnkey.
The combination of a powerful custom e-commerce site with strong branding, technology and vendor relationships gives you the opportunity to become a major player in the US consumer electronics market without spending millions.
With the fourth quarter right around the corner, the timing could not be better.
Here is your chance to own prime digital real estate and cutting edge technology at rock bottom price.
The starting bid is $1,000 with no reserve. Buy it now price is set at $500,000
Don’t miss out, Bid now!
Terms and conditions: Cash Sale only (if you are not able to complete the transaction cash within 72 hours of close of the auction, DO NOT BID)
Sale is final, assets sale, as-is. All biding is a legal binding contract. If you can’t close, DON”T BID!!!!)
Ask all questions prior to bidding - You can email sales@bigbangnames.com, post your questions on the listing page or call 305-600-1241 and ask for Michael.
Payment must be completed within 72 hours from the time of closing the auction.
Escrow service is available through Escrow.com - If Escrow option is selected, all fees are the responsibility of the buyer.
Upon receipt of payment, all domain names will be transferred to the new owner and source code will be sent via CD overnight delivery to the buyer. Upon receiving the source code the is considered final.
Again, Cash buyers ONLY, do NOT bid if you are unable to complete the transaction according to our terms.
Additional documentations you can download to review offline:
Payhalf.com Business Plan (XL doc) payhalf_financial-projections
Payhalf.com Sales transactions payhalf_sales
Payhalf.com Prospectus payhalf_docs
Bid early! Click Here
http://www.bigbangnames.com/Payhalfcom–1MM-ecommerce-site-for-1000,name,100291,auction_id,auction_details
