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Ecommerce buyer memo

Young skincare dropshipping store

Young skincare dropshipping store is a Ecommerce asset with $980 monthly profit and a red risk rating. The first-pass memo is not about upside; it is about whether the buyer has enough proof to avoid a bad purchase.

Red riskPass
85risk
Asking price$24,000
Monthly profit$980
Annual multiple2.0x
Age9 mo

Executive Summary

Young skincare dropshipping store is a Ecommerce asset with $980 monthly profit and a red risk rating. The first-pass memo is not about upside; it is about whether the buyer has enough proof to avoid a bad purchase.

Decision: Pass unless the seller provides stronger evidence and accepts a risk-adjusted price or holdback.

Deal Facts

Marketplace
Acquire-style listing
Traffic
Paid social traffic with limited organic proof
Customers
1.8k orders, no verified repeat purchase cohort
Age
9 months

Risk Score Breakdown

Revenue quality70/100

Revenue proof needs deeper reconciliation and concentration checks.

Traffic quality82/100

Traffic or acquisition depends on channels that can move quickly.

Evidence quality74/100

Listing claims need direct platform access before pricing makes sense.

Transfer complexity76/100

Ecommerce transfer has account, vendor, or platform handoff risk.

Platform dependency81/100

A single platform can materially change revenue after purchase.

Retention / repeatability52/100

Retention concern is moderate relative to the asset type.

Red Flags

  • Core claims are not yet backed by direct, read-only source access.
  • Traffic or demand may be recent, paid, or platform-driven rather than durable.
  • Transfer path could break value if accounts, rights, or platform assets cannot move cleanly.
  • Revenue depends heavily on a platform whose rules the buyer does not control.
  • Missing proof: Chargeback and refund history.
  • Missing proof: Supplier contract or reliability proof.

Missing Evidence

  • Chargeback and refund history
  • Supplier contract or reliability proof
  • Ad account read-only access
  • Contribution margin by SKU
  • Customer repeat purchase data

Seller Questions

  • Can you show contribution margin by SKU after shipping, refunds, and ad spend?
  • What are the refund, chargeback, and supplier failure rates?
  • Can the ad account and creative assets transfer cleanly?
  • Which products depend on one supplier or one paid channel?
  • What exactly happens during transfer, and which accounts cannot be transferred directly?
  • Can you explain any month where revenue or traffic moved more than 20%?

Verification Checklist

  • Reconcile Shopify, payment, ad spend, and bank deposits
  • Verify supplier reliability and fulfillment terms
  • Review refunds, chargebacks, and customer complaints
  • Check brand, product claim, and platform policy risk
  • Reconcile claimed profit against payment, analytics, and expense records
  • Document every asset, login, vendor, and account required for handoff