E-shopping Group with a loss of PLN 188 thousand
The dropshipping sales model, on the basis of which the company runs 7 online stores, translates into the company's sales. The company is responsible for selecting a wholesaler, collecting orders and customer service, while the selected wholesaler is responsible for maintaining stock levels and distributing the order to the target customer. The process of cooperation between the e-store and a given wholesaler is fully automated. An important element of the dropshipping model that allows for reducing operating costs is that the company does not have its own warehouses and suppliers (couriers) but uses the logistics infrastructure of the wholesaler. In Poland, the company runs its own stores, but also sells through marketplace websites (Allegro, Erli, Empik, Ceneo, Velomarket, Vilandy).
– We want to continue to focus on revenue growth, achieving sales with a margin of around 30%. We hope that by the end of this year we will be able to achieve the expected profitability. We are using the potential of synergy between our several e-shops representing various industries. This year, we are focusing on toys, cosmetics, supplements and home & garden accessories. We are working simultaneously on our own brands from these categories and are in advanced talks on cooperation in the area of consumer electronics. We are looking for interesting brands that could increase the scale of our business – says the president of the management board of E-shopping Group SA.
Own brands generate a 70 percent margin
E-Shopping Group is working on a new FMCG private label, which it wants to introduce to the market this year. The company's first private label was the optical brand Bentivolio, launched in 2023. It sells 300 models of men's, women's and children's frames. Unlike the dropshipping model, the company orders products independently and then stores them in its own warehouses, from which they are delivered to customers. Sales are carried out in a hybrid model, i.e. through the online channel and sales representatives cooperating on the basis of b2b contracts and paid with a sales commission. The company currently cooperates with two sales representatives, and ultimately plans to increase this team to 8-10 people. The costs to date amounted to approx. PLN 380,000 to launch the brand, including, among others, developing a trademark in graphic and word versions, its registration, legal costs and purchase of products. The sales value at the end of March 2024 of products under the Bentivolio brand amounted to PLN 230,000 net. The average margin on the sale of these products is around 70 percent.
Recapitalization of the company by the president
On March 18, 2024, the company entered into an investment agreement with the shareholder and CEO – Maciej Nowak. Under the investment agreement, the shareholder undertook to recapitalize the company personally or through entities indicated by him, in an amount not exceeding PLN 1 million within 2 years from the date of conclusion of the investment agreement, by granting a loan or taking up shares in the company during the issue of new series shares. The investment agreement was concluded for a period of 2 years and expires in the event of the shareholder selling all of the company's shares held.
3 full-time employees
E-Shopping Group is a company listed on the NewConnect market, runs 7 online stores in the dropshipping sales model. The company employs 3 people. Previously, the company operated under other names: Sawa Investment SA from 06.02.2014 to 09.09.2015, Cambridge Chocolate Technologies Polska SA from 09.09.2015 to 13.05.2017, Cambridge Chocolate Technologies SA from 13.05.2017 to 18.05.2022, and Etna Software Technologies SA from 18.05.2022 to 28.03.2023.
