Website Closers® presents a fantastic opportunity to enter the Outdoor Products vertical through the acquisition of this 11-year-old eCommerce business that offers products to enhance the warmth and ambience of their customers’ homes through its indoor and outdoor patio and hearth products. Since they sell both Patio and Hearth products, there is sales continuity year around.
For the patio, the business sells many products that enhance the livability and enjoyment of the outdoor living space, including patio heaters and replacement Parts, fire tables, DIY fire pits & fire features, fire pit parts and fittings for the DIY market, and Fire Pit Glass.
For the hearth: the business sells products that add warmth, beauty, functionality, and convenience to the fireplace including a wide variety of fire glass styles and colors as well as fireplace burner systems and connection fittings.
The brand’s logistics are handled 80/20 through Fulfilled by Amazon (FBA) -80%- and Fulfilled by Merchant (FBM) -20%- allowing it to maximize profit on its diverse revenue streams. Its line of high demand SKUs include fire glass, fireplace burners and patio heaters, among many other options for consumers to choose from. A buyer could see tremendous growth in the business by adding new SKUs to the product line, such as other fireplace accessories or other burner models. They could also advertise improvements to existing models, enhance their supply chain, and much more.
The fact that the brand already has a high standing within the industry, as well as a fully optimized business framework, provides buyers with a fantastic starting point to build upon.
Another great way to scale this company is by adding to its number of online retail channels. It could create international Amazon storefronts to capitalize on its success on the platform, and partner with other sales hubs such as Walmart to make the products accessible to a wider audience.
The company could also dramatically improve its profitability by expanding its inventory size, and by deploying capital investment into larger inventory holds. This would let them last much longer before going out of stock and increase the number of sales in any given amount of time. As all inventory is handled by 3PL and Amazon FBA, this increase in storage and shipping volume could be done without much trouble, and lead to a skyrocketing rate of sales.
Something that makes the brand’s staggering success and popularity among customers even more impressive is the fact that they rely solely on Amazon-sponsored advertising to market their products. Improved SEO on their product descriptions and PPC advertising campaigns could do wonders in putting the company in front of more eyes, and, as a result, bring in more prospective customers.
They could also partner with outdoor designers, restaurant and hotel chains, and resorts, which would showcase the luxury of their products and make them even more appealing for buyers.
Promoting the brand on social media platforms such as Pinterest, Facebook, and Instagram could also both showcase their products even further, as well as build up a loyal following and community.
The current owner enjoys a workload of just 25 hours per week, thanks to a part-time virtual assistant on staff who handles merchant fulfilled order management, and one Amazon agency that’s contracted to handle customer service. The owner’s personal responsibilities consist of purchase management, Amazon sales tracking, FBA stock monitoring and restocking, and all accounting needs. However, this workload could be easily lightened by bringing on an inventory and order manager to handle some of the more time-consuming tasks for the business. With less work to do, the new owner can focus their time and energy on other productive endeavors, such as marketing and building up partnerships.
This business exists in a global market that was worth roughly $16.8 billion USD in 2018, and has only seen exponential growth since then. Given the fact that the acquisition has already made a strong name for itself for its quality patio heaters, above ground and DIY fire pits, and replacement parts, it provides a valuable opportunity for anyone looking to get a head start in such a lucrative market. If you’re interested in this red-hot eCommerce deal, contact Website Closers today to learn more.
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