Website Closers® presents a leading provider of Water Garden & Pond equipment, a specialized but very profitable vertical. The company has 28+ years of experience attracting a vibrant customer base for its specialized garden-related products. It started as a brick-and-mortar store but expanded to eCommerce 15 years ago and has since attracted huge profits on its Amazon and eBay platforms.
As thousands of American homeowners look for ways to make their outdoor space more appealing, this company has grown to 2,500+ SKUs, competitively priced at an Average Order Value of $131.
A key reason for the company’s success is the talent behind this operation. Their 10-member team includes specialists in this vertical who understand the appeal of water gardening and have 60+ years of combined hands-on experience in this field. Customers can instantly recognize the value in their products, which has made this company a leader in this profitable vertical.
The business markets a diverse mix of products, with 99 % sourced from U.S. suppliers, and plenty of discounts made available during peak buying periods. The company maintains two U.S. trademarks to protect its products and is now working to obtain two more.
There are major benefits to the buyer who purchases this business. Not only does it have a long track record of success, but the company’s Amazon platform has been highly successful. The company maintains a Lifetime 99% Positive Feedback rating on both Amazon and eBay and is among the few select sellers on Amazon who are qualified for the “Seller Fulfilled Prime” program, a designation the business first achieved in 2017.
This business represents a clear opportunity for a U.S. Buyer to acquire this evergreen and growing company and then scale it quickly by creating products in new categories such as Hydroponics, sourcing high-volume products from Asia that are known to be popular in the U.S., and expanding its social media presence to enlarge the customer base.
Business Broker Takeaway
Our analysis of this business revealed several key value propositions for a buyer looking for a profitable and highly experienced Amazon-based company marketing appealing niche products, with the ability to continue creating new ones. We are excited about this business for 3 important reasons:
Diverse Product Catalog. The company has grown thanks to an impressive catalog that includes a diversified mix for installing, maintaining and accessorizing outdoor farm ponds, koi ponds, fountains and additional water features that beautify outdoor property. The company has at least 8 top sellers, with the highest-selling product making up 3.24% of sales, so the company is not dependent on a few SKUs for its profits. The products sourced in the U.S. are done so with little to no lead times.
Experienced Team in Place. A lot of this company’s success can be attributed to its experienced and skilled staff, who handle all aspects of the business. Their work has proven invaluable over the years. The company has published articles in national trade and gardening magazines, and given presentations at gardening conferences, and the staff includes graduates with degrees in Horticulture. The buyer gets a team that needs no on-the-job training.
Easy to Scale. Having a track record of two decades of success means this company understands how to market products, and with 2,500+ SKUs, they know how to expand their catalog. The company could continue to expand the scope of its private label offerings on Amazon and other channels, and source some popular products from Asia to sell under their house brand. Digital marketing provides some critical tools, including expanding their social media presence to boost customer engagement and expand PPC ad campaigns on Google and Amazon to drive sales higher.
The Company
The business was initially launched in 1995 and the first eCommerce website was started on eBay in 2006 and Amazon Marketplace in 2010. From the start, the company has remained laser-focused on providing first-rate lawn and garden products including their ponds and water features.
Their typical customers includes homeowners, particularly empty nesters, with disposable income to spend on these types of projects. They attract a healthy mix of both men attracted to new project installation and maintenance, and women who lean more toward decorative and accessory items. Because customers often return to purchase new accessories, their Average Lifetime Value is $5,000.
The company also benefits from having lawn and garden products that enjoy peak sales during times of the year when outdoor gardening activities are at their highest. Their peak season is a lengthy one, starting on April 1 and running through the fall, while over the spring and summer months the company averages 300 orders a day.
Operations & Marketing
Since 2023 the company has increased the number of products that are DropShipped, while also using Fulfillment By Amazon for a percentage of its shipments. Many of the company’s vendors are willing to Dropship for them, and since the company works with 30 primary vendors, it could drive sales much higher by doing so.
The company is now shipping packages daily from its own warehouse, which can range from 20 per day during the slower winter months to 300+ on their busiest days in the spring. To keep up with that demand, they maintain an inventory of 600,000+ over a year, with at least a 4-6 month supply of stock available at all times.
One of the company’s most unique strengths is its in-house design capabilities, which include creating 3D print proprietary components. This gives the company the ability to deliver a wide range of custom products to the market in the future. This has helped strengthen their position in this niche vertical and is an area a buyer could explore even further.
With its strong reputation, the company has not needed to invest much in paid digital marketing and has instead relied on high organic traffic. That has included maximizing their SEO program, which includes a blog on their website, and they have a massive 27,400+ subscribers in their email database that the buyer could tap into for future market purposes.
Their organic traffic, which is growing, has brought them 379,000+ average monthly sessions on Amazon and 19,700+ on eBay.
The company is a well-respected name in its niche industry, thanks to its diverse catalog and skilled staff. The company has negotiated excellent terms with U.S. suppliers, and their in-house design capabilities remain another advantage over competitors. This is an innovative business with a clear track record of success, a loyal customer base, and terrific scale options.
