Website Closers® presents a thriving B2B eCommerce Brand that has become a leading Manufacturer and Importer of one-of-a-kind outdoor living, storage and gardening products made of decay-resistant solid wood. The brand is well known in the industry and continues to grow its footprint every year.
Because of the high quality of their products and their strong reputation after more than a decade in the business, the company works with some of the largest retailers of outdoor products in the industry, including Home Depot, Lowes, Target, Walmart, Amazon, Wayfair, Overstock, Houzz, and The Shopping Channel, among others. B2B sales are primarily generated by these Retail Partners via their eCommerce platforms, where the products are listed and sold, and the company dropships directly to consumers on behalf of these Retail Partners. The brand is so popular and sticky that they now maintain a 100% Repeat Customer Rate with their Retail Partners. Everybody that buys from them – buys from them again.
That puts this company in the forefront of the outdoor living niche because these tend to be the first places consumers shop for outdoor living items. This allows the business to use the power of its Retail Partners’ name recognition to develop its brand awareness among consumers without spending any money on marketing. This brand recognition would take a new entrant many years to obtain, but it is available on Day 1 with this acquisition. This year, additional major retailers such as Ashley Furniture, Pottery Barn, Belk Stores and others have reached out to the brand about creating a new partnership
Not one dollar has been spent to promote the brand, which helps keep profitability high, but also provides a buyer with a tremendous opportunity to add Sales & Marketing to the business to scale even faster.
Most of their products are developed in Canada and manufactured for this brand based on their specifications, with all products sold B2B under their brand name. Operating exclusively in three leading niche categories – Outdoor Living, small format Outdoor Storage, and Gardening – the company has top selling products in each category, and up to 30% of those products now represent 70% of their sales. With most orders drop-shipped one unit at a time to individual consumers on behalf of the company’s retail partners, their Average Order size is $350.
This brand is operating within a growing, lucrative vertical. The Outdoor Furniture Market is a highly profitable one, having exceeded $18 Billion in 2021 and projected to grow by 5.9% through 2027. In the past few years there has been a major shift among homeowners toward improving their outdoor spaces and creating more comfortable and appealing gardens, porches, and backyards. That has boosted the sale of outdoor furniture products, and all natural wood products that withstand changes in weather conditions have been particularly appealing.
They set the standard on quality. Launched 12 years ago, one of the company’s strongest achievements has been its drive to set a high standard for originally manufactured items priced at a great value. Most products are manufactured using environmentally and socially responsible materials, crafted of solid wood harvested from the Cypress Tree. Their hammock stands, swings and lounges are made of Larch, a particularly strong timber. Some of their other products are made of Eucalyptus Wood, a renewable resource and one of the most environmentally friendly hardwoods being harvested today. The company prides itself in its ESG efforts.
Planters, greenhouses, plant stands, storage sheds, trash receptacles, benches, firewood sheds, daybeds, picnic tables and reclining lounge chairs are among the many products they market, all created and designed to help people enjoy the time they spend outdoors. They now have 120 SKUs, with new ones being developed and added each year, some as requested by their Retail Partners.
This is a Lean Team. All operations are handled by a 3-member team that includes the current owner and two employees who manage all daily tasks, ranging from product development to order processing, accounts receivable and updating inventory levels. They maintain supplier agreements with each online retailer, and all products are imported directly to their third-party warehouses for order fulfillment. About 80% of orders are within the US, while 20% are in Canada.
While they maintain the same number of clients in 2022 as they had in 2021, there have been some changes to shift to new, larger clients … including Cymax.com and The Shopping Channel Canada, while moving away from a few smaller clients. The company has opted to cooperate with larger clients moving forward to ensure the quality of customer service is maintained at the highest levels.
Because of this and their strong reputation, the company has not focused on generating new leads. Their business model is highly stable and doesn’t depend on marketing for new business from prospective clients.
The current owner is available to stay on post-acquisition to ensure this is a smooth transition and to keep the lines of communications strong with their suppliers.
This brand could scale quickly. They have a branded presence on Amazon, with their own brand store on an A+ product page, which could be developed into a new business in itself, selling a smaller portion of their overall product selection. The company has not focused on DTC sales simply because the growth in the B2B eCommerce side continues to grow organically and there has been no need. Additionally, the team is very small and the current owner prefers it that way. A new owner could hire a few people out of the gate and start adding sales via low hanging fruit, including DTC which is immediately available since the company controls the Manufacturing and R&D process.
The company is well positioned for enormous scale. That would include onboarding more Retail Partners to sell their products on their online platforms, continuing to add new products from various product categories (including in adjacent verticals), and running PPC ads on Google and Amazon to get more of their SKUs in front of consumers doing online searches for DTC sales. The company could also invest in a sales team to handle new B2B retailer client acquisitions. These are just a few of the options available to a growing brand like this one – the sky is the limit.
This brand has created a tremendously profitable operation by creating their own products in a highly lucrative field, and then finding the ideal way to get those products sold, by establishing long-term partnerships with some of the top retailers selling outdoor furniture and gardening SKUs on their websites. The fact that this brand has maintained a relationship with 100% of their big box retailer clients demonstrates how popular their products are with the customers who shop at those websites.
There’s a lot to unpack with this one – but an expert in digital marketing and eCommerce sales would love this deal since DTC and Marketplace sales have not been a focus for current ownership. Contact Website Closers today to learn more about how this company represents an opportunity to secure a serious foothold in a thriving and profitable industry.
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