⚠️ November 2023 Revenue Update: Up $405,187 (44.7%)

Revenue Up $405,187 (44.7%)

Hello, everyone! Hope you had a profitable November.

We’ve been very busy with BFCM and integrating the new acquisition. This was also my highest month ever in terms of revenue since I started doing e-commerce in 2017.

Our highest month ever in revenue
Our highest month ever in revenue

We haven’t included in the November results the Amazon aggregator we bought for $1 on November 1st, which did over $150,000 in revenue last month. We’re still transitioning the operations and deciding which brands we will keep and which brands we will liquidate.

Everyone loves holidays fuzzy socks
Everyone loves holidays fuzzy socks

Our CM3/SDE margin is currently at 9.7%. This is normal because we are still in the first 12 months of a turnaround for most brands and have been selling old inventory at breakeven. This quarter is when we finally started reordering with our lower cost of goods. We expected our margin to end at a minimum of 15% for most brands as we optimize them.

📉 Amazon Aggregators vs TikTok/Teemu

Amazon revenues in November are down or flat for most brand owners we have spoken to, ourselves included. This is due to the crazy offers of the TikTok shop and Teemu selling similar products at much lower prices due to rebates with cheaper shipping from China.

This 20-30% decline in revenue was not forecasted, and it does not bode well for the aggregators that have debt facilities coming due in 2024:

 ✈️ Another Aggregator Under LOI for €1

Flying is the perfect time to strategize
Flying is the perfect time to strategize

We have another aggregator under LOI, doing over $5MM in revenue between 3 brands. I have spoken to all the stakeholders, and the SPA has been drafted. We await the debt provider’s approval of the transaction this week. I will need to book a ticket and fly to Europe to sign everything if we move forward, as their board wants to close before Christmas.

Things are accelerating, and we have run out of personal capital to deploy. I will be looking for an institutional investor to support us in our Series A, which we plan to raise in 2 tranches: $2.5MM first, then $10MM once we get more deals under LOI.

Will keep you posted on what happens next Sunday!

Here are some links to stay connected:

Marc Roca
Founder & CEO of Inversal

Marc Roca Founder & CEO of Inversal - Face