Website Closers® presents a 2 Decade Old Global Industrial Supplier that represents an outstanding opportunity for an investor looking to secure a strong footing in this thriving B2B marketplace. This company has a long list of significant assets and accomplishments, which includes 20 years of experience as an online B2B commercial product supplier marketing to a wide variety of customers across various sectors and industries. Their accounts include hundreds of healthcare organizations, educational institutions (school districts, university systems, large universities), government agencies (Federal, State, County, City), Fortune 5000 companies and SMBs.
Stable Performer
This company is all about stability. Through ups and downs in the economy over the last 2 decades, this business has continued to hum along, showing its resiliency and ability to withstand even the harshest of times. It has very little concentration risk in products or sales channels, and has a loyal customer base of corporations, governments and organizations. This is not your average eCommerce business.
With a well-earned reputation for quality products, fast and reliable customer service and quick shipping, the brand now markets to 250,000+ clients and enjoys a rising 35% Repeat Customer Rate.
Their durability has given them far more assets than the immense catalog they have amassed. That includes close and long-standing relationships with a large vendor base. Their suppliers include numerous direct manufacturers and wholesalers providing them with preferred pricing and direct distribution relationships. This has given them a competitive advantage that other businesses operating in this vertical are not even close to replicating.
Operations
The business continues to expand its client base as they provide high-demand industrial products and equipment that customers rely on to maintain and expand their own daily operations, as well as to support, repair and maintain their business, and in some cases, to perform research and production. In service of this market, the business has expanded its offering to a phenomenal catalog of 8 Million+ products from 16,000 manufacturers. Those SKUs come from a hefty 60,000+ product categories, giving the company an unmatched ability to provide business clients, agencies and organizations with virtually any item vital to their operations.
Their success is a prime example of how eCommerce has become so important to a host of industries and agencies that need a comprehensive array of industrial and technology products, laboratory equipment, and related supplies. The company generates an impressively steady cash flow through not only its flagship website, but also multiple online marketplaces that include Amazon, and Newegg. Today literally thousands of small to mid-sized businesses have come to rely on them for industry-related products, enabling this brand to attract an enormously diverse customer base bringing an Average Order Value of $300-500.
No single customer or supplier represents more than 15% of their revenue, no single product represents more than 5% of sales, and they enjoy robust margins and very enviable scale opportunities that should look particularly appealing to a buyer.
The Products
Their catalog covers a wide variety of popular products, including categories such as automotive, electronics and computers, industrial and scientific, office and business supplies, software, sporting goods, and laboratory equipment, at prices that range from $28 to $379,000. Their customers are buying products to use in their own business, and the company has several Enterprise Accounts from organizations with multiple buyers who have purchased from them, giving them a high Customer Lifetime Value. The company also attracts plenty of business from resellers; in fact many of the company’s suppliers regularly buy from the company products they themselves don’t carry.
Sales on their online marketplaces, including Amazon and Newegg, recently started to exceed purchases made on their own website. In 2021, 65% of their sales came from their website, but in 2022, 53% were being made on their marketplaces. This mix varies by month and year. The company is constantly pushing to expand sales in all channels.
Operations
Their experience cultivating a loyal customer base has given this brand an effective and highly scalable infrastructure, with an experienced team that efficiently manages their huge catalog and are experts at automating the brand’s complex workflows. The current ownership employs eight full-time workers who oversee order management, Ops administration, and sales and customer service. An additional 20 full-time contract workers based in Europe perform technology development, content management and operations support, while 10 contractors in India handle accounting and bookkeeping.
Most orders are Drop Shipped from their suppliers, with only 5% of their sales coming from stocked products. Those few selected SKUs are warehoused and shipped from their 3PL. They maintain $250,000+ worth of on-hand inventory.
Marketing
PPC ads on Google have enabled the company to drive profits higher, and now represent 35% of the company’s website sales. Their SEO program, which includes product content optimization, product reviews and online Q&A features designed to encourage more user-generated content, drives 65% of sales from organic traffic.
That SEO program is delivering a massive 350,000+ unique monthly visitors to their website, and the company is now investing further in the most up-to-date SEO to continue expanding those numbers. They are also looking at an affiliate marketing campaign as another source of growth.
Digital marketing is one of the numerous growth opportunities available to the company. With a scalable infrastructure that gives them a foundation for continued growth, profits could skyrocket by expanding their supplier base to increase the range of products being offered, expanding sales to their existing enterprise customers, and increasing their SKU count on Amazon. Everything is firmly in place for tremendous future growth.
This represents an exceptional opportunity for a shrewd investor. Any buyer looking for a profitable, scalable, and firmly established B2B company can look no further than this business’ impressive and lengthy track record of success. The new owner will get an extremely valuable customer list that includes enterprise accounts generating repeat orders, and work being performed by a loyal and dedicated team. Their growth trajectory in the current marketplace is guaranteed. For a new owner, the only question is how quickly they want to scale operations, because the infrastructure and customer base is there to rapidly accomplish it.
