We are pleased to offer for sale a long-established mail order model railways business. It would be an ideal business for an add-on to a current business within the toys and models sector or for anyone looking to turn their model railways hobby into a business.
The time commitment is relatively low mainly just order packing and basic administration. If you are looking to grow the business some T.L.C. you wouldn’t go amiss! Our main quantity of orders currently come through eBay which is synchronised to the website but there is plenty of scope for anyone prepared to put in the time.
The business is fully functional including an e-commerce website, integrated eBay store with the option to expand to Amazon and a TNT carrier delivery agreement.
The business is being sold to raise cash for investing in another business venture.
Previously the main focus has been on OO and G Gauge model railway collectables, mainly locomotives.
Financials -
Sales turnover for financial year
• Apr 2016 to Mar 2017 £10,200 (inc vat)
• Apr 2017 to Mar 2018 £4,680 (inc vat)
The drop-in sales in the year ending March 2018 vs March 2017 is mainly due to lack of time and attention invested in marketing products and attending events.
Profit -
Most stock is on a good profit margin as it was bought at old prices. Average GP would be around 60%.
Running expenses -
• Web hosting £10 p/m
• eBay shop fee £30 p/m + sales fees
• M2E Pro eBay/Amazon plug-in (currently free due to low sales volume)
• Domain name approximately £10 p/a
Stock -
Approximately £8,400 total stock cost value with an estimated retail value of £21,000 (Inc VAT).
Current stock items mainly consist of consumables with a small stock of locomotives in G, 00 and N gage.
Website -
Fully functional trading e-commerce website (Magento 1.4) with eBay integration fully operational with an option to add Amazon.
The domain has a DA of 14 and PA of 25 and spam sore of Zero (as of 27 Apr 2018).
The sale includes an eBay store with 100% seller rating with over 900 reviews.
Monthly website visitors: 209 sessions (28th of March 2018 to 26th of April 2018) and with a good percentage of organic search.
What’s included In the sale -
Customer base
eBay store
Website (including domain).
Potential -
The business has a potential to incorporate other collectables or modelling such as diecast.
The modelling community is relatively easy to enter providing you are an enthusiast.
Plenty of shows and events which obviously has possibilities to advertise.
There are many specialist magazines such as the Railway Modeller again with plenty of advertising opportunities.
Current Routes to Market -
Organic Search
Paid Search
Potential routes to market -
magazine advertising
What’s expected from the buyer -
It is important for the buyer to be a models enthusiast or at least an aspiring one in order to understand the products and the market.
You are expected to have at least basic business knowledge. Skills include dealing with customers, restocking, picking and packing.