Listing teardown · Ecommerce
Teardown: $26.0K Per Month eCommerce Business in the Children Niche (Empire Flippers #97292)
Short answer: a first-pass read of a live public listing, asking $405,592: 0 red, 6 yellow and 4 green flags from the checker's rules. Every figure comes from the public listing page; nothing here has been verified with the seller.
How to read this. Flags are questions to answer, not findings. A red flag means the listing's own figures or text need an explanation before you spend money on diligence; it does not mean anything is wrong. Sellers often have good answers. Listing details can change after the date above.
Snapshot (as listed)
| Asking price | $405,592 |
|---|---|
| Stated multiple | 2.9× annual SDE |
| Average monthly revenue / profit | $24,368 / $11,655 |
| Latest month revenue / profit | $8,568 / $2,715 |
| Payback (ask ÷ monthly profit) | 34.8 months on the average; 22.8 months on the last 3 months |
| Reported margin | 48% |
| Age | about 101 months |
| Monetization | eCommerce |
| Owner hours (seller-stated) | 20 a week |
| Top traffic channels | n/a |
Red flags
- None from the listing's public data.
Yellow flags
- Volatile monthly profit (CV 1.25). Monthly profit ranged $-1,413–$44,235.
- Asking multiple 2.90× is above the typical range. EF for-sale asking multiples (2026-10-06) for eCommerce: p25 2.08×, median 2.5×, p75 2.83× (n=51).
- Platforms the listing relies on or mentions: Meta/Facebook. Ask how much revenue and traffic depends on each, and whether there has been any past policy or algorithm impact.
- Seller reports 20 hrs/week. Above the checker's default limit of 10 hours a week.
- Customer/revenue concentration not disclosed.
- Generic reason for sale. The Seller would like to explore other opportunities.
Green flags
- The listing shows connected data providers: Shopify. These reduce, but do not remove, the need to reconcile figures to bank deposits.
- About 101 months of operating history (first revenue 2018-05, per the listing).
- Last-3-month average profit $17,786 is 53% above the 12-month average.
- Post-sale support is offered: The seller is willing to support the transition of assets, share details of past experiences, and provide guidance on whatever the new owners need for 60 days.
Questions to ask the seller
- Explain the low months (refunds, annual-plan timing, one-off costs?).
- What justifies pricing above comparable listings (growth, verified retention, moat)?
- What would happen to revenue if Meta/Facebook changed its policy/API tomorrow? Any past incidents?
- What share of revenue comes from the top 1 and top 3 customers (or traffic/affiliate partners)?
- Why sell now, and what would you do with the business if it doesn't sell?
- Provide a month-by-month P&L for the last 24 months with every cost line.
- What exactly transfers (domains, code, accounts, trademarks, email lists, contractor relationships)?
- Has the business ever had a platform ban, penalty, chargeback spike or security incident?
What to verify
- Store and payment-processor reports (Shopify/WooCommerce, Stripe, PayPal, marketplaces) reconciled to bank deposits
- Landed cost per SKU, ad spend and refunds month by month, so the margin can be rebuilt
- Inventory on hand, its valuation and whether it is included in the price
- Supplier, 3PL and contractor agreements and whether they are assignable
- Ad-account history (CPA, ROAS) and analytics by channel for the listing's 12 months
- Trademark, domain and marketplace-account transfer requirements
Payback at the asking price: 34.8 months on the stated average profit, 43.5 months if profit is 20% lower, 58.0 months if 40% lower. This is arithmetic on the listing's figures, not a valuation or a bid suggestion.
Seller statements to check against evidence
Quoted from the listing. Each is a reasonable thing for a seller to say and worth confirming with documents.
- “The brand benefits from a strong organic presence, with at least 90% of traffic originating from organic sources and minimal expenditure on paid advertising.”
- “The business maintains exceptionally strong profitability, with average net profit margins exceeding 50% as of the time of writing, and experiences particularly strong performance during the back-to-school season.”
- “Products are sourced from an established supplier in China that holds a utility patent and grants the business exclusive purchasing and distribution rights for specific product lines.”
- “This represents an attractive opportunity for Buyers seeking an established brand in the Children's niche, with strong organic visibility, healthy profit margins, and meaningful growth potential through targeted advertising, international expansion, and further product line development.”
Risks the listing itself discloses: Inventory mismanagement around back to school seasons could result in missed revenue. Changes in supplier pricing and freight could impact profitability.
Sources
- Empire Flippers listing #97292, public listing data read 13 October 2026.
- FirstPass red-flag rules, the 33 published rules used for the flags above.
Related
FirstPass Memo is independent and buyer-paid. Not affiliated with, paid by or endorsed by Empire Flippers or the seller. Informational screening only, not investment, legal, tax or valuation advice, and not an audit. Figures are the seller's and marketplace's, as listed on the date above. If you are the seller or broker and something here is out of date, email hello@firstpassmemo.com and we will correct it.