Website Closers® presents an SBA Pre-qualified eCommerce business with a thriving presence on Amazon. The company sells 200+ diverse products in highly in demand niche categories, including Sports, Health, and Home Goods. The company has healthy long-term relationships with 50 suppliers and now operates a business that is automated and requires very little working capital. With 13 years in business, the company has established a number of protocols, systems and relationships that will transfer well to new ownership.
Having identified high ticket priced products that customers have been eager to buy for over a decade, such as infrared saunas, hockey tables, volleyball net systems, and much more, their Average Order Value is a high $1,500 with a healthy mix of items, many of them targeted to different seasons, to reduce the risk of concentration.
While this online business has been around for many years, the current owner has more than three decades’ worth of experience selling items in these niche verticals and has cultivated strong ties to manufacturers, factories, and buyers. Some of their products are sold only on their select platforms through negotiated terms with the vendors. These relationships by themselves are highly valuable.
More importantly, over the years this company has made 2,000+ SKUs available. While the current owner chose to limit the listings to a manageable 200, there are opportunities to dramatically expand what is being sold across their multiple sales channels. That gives a buyer the opportunity to take control of a business with phenomenal scale options.
This is certainly a fast-growing industry that the company is operating in. Products created for use inside or outside the home are experiencing record sales as the real estate market has been booming and more and more homeowners are investing in home renovation and improvement projects.
Profits within the home improvement industry are skyrocketing, and this industry is now stronger than it has been in more than ten years. Homeownership is a significant portion of the world economy, and homeowners place a high value on making their homes more attractive, functional, and enjoyable. Cookie-cutter homes are out of style as people look for ways to make their personality and individual traits stand out.
The home improvement industry has been increasing each year in most parts of the world. With a nationwide shortage of housing and record-high home prices, more homeowners are staying put rather than moving, and focusing on upgrading the house they live in. Today nearly half of American homeowners are living in the first home they bought, and studies show that for those who have lived there for longer than six years, 61% plan to renovate, remodel, or redecorate. That has sent this industry’s profits to stunning new heights.
This company has recognized the need for a wide assortment of products in the home, including for recreation and relaxation. A closer look at how they built their success will help demonstrate what a smart investment this company would be.
Launched in 2009, the business has provided online sales with products provided by multiple suppliers, who drop ship orders directly to buyers. With products available in multiple best-selling categories and their high AOV, the company averages $2 million in yearly sales.
The company markets its products in the U.S., with all their vendors located in the lower 48 states. Their selection of high quality infrared saunas have become their top selling product, representing half of sales, but their many other SKUs represent an additional 35%, while 15% are a mix of other brands sold based on the seasonality of the products.
They have a reputation for quick deliveries, having maintained a 0% late shipment rate and a 0% order defect rate over more than a decade. While sales peak in the fourth quarter around the holidays, they attract strong sales through the rest of the year as well, with their typical customer being a family purchasing these products for their own enjoyment.
Their products were chosen because the categories they are in have proven to be traditionally recession proof.
Initially an Amazon seller, that site still represents 85% of their sales. The company operates on Seller Central and has used PPC ads on the platform to expand their customer base. It’s working, since the company now has a 92% Positive Seller Rating.
The company has expanded, though, and now sells on Overstock, the site for quality home products, which is now 10% of their sales, and on their Shopify website. The company has added eBay and PayPal as additional options for buyers.
With more than 2,000+ SKUs available to be added to their product line, the company already has an established presence on enough sales channels to drive profits exceptionally higher, and they have the additional option of putting their SKUs on new sites such as Walmart and Target.
This is a simple business to operate, one that has steady revenues from the 99% of products drop-shipped from vendors. The company’s long-standing relationships with its vendors could easily get transferred to the buyer, and the current owner is available for up to 30 days after the sale to assist the new owner.
This is an easy business to scale, simply by broadening the number of SKUs available from current vendors and acquiring exclusive products through special buys. The company could also take advantage of Fulfillment By Amazon to handle additional shipments.
