Website Closers® presents an eCommerce success story operating within the lucrative field of Adjustable Beds, Mattresses, Sheets and other Bedding Accessories. An ever-important market, the bedding industry has seen incredible spikes as the housing market booms and an increasing number of people look to redecorate. Every home sale could lead to the purchase of a new mattress, and this company not only has a strong foothold on Amazon.com as a high growth Amazon Seller, but also as a manufacturer of their own product. The manufacturing element of this business, which is new this year, has transitioned the company from a strong eCommerce Brand into an Enterprise Level Bedding Giant that will now be able to develop its own SKUs at a much lower R&D cost, but also open the doors to third party bedding companies looking for US-based manufactured mattresses and bedding.
Offering innovative and stylish products that customers love, this soaring brand has seen consumer interest reach new heights in the past 2 years. And while they enjoyed solid sales during the heightened COVID months, there has been no slowdown in sales this summer – in fact they are hitting records well above 2020 COVID months, thus proving that they are not the subject of a “COVID-bump”, but a mature bedding brand and US-based manufacturer that is ready to partner with a larger business through a majority sale and take this business to new heights. Ownership has no interest in leaving, and in fact, prefers to remain with the business as it continues its growth trajectory with new partners in place.
This well-established business started out by marketing adjustable beds and mattresses. A growing industry pillar, the company has scaled monumentally as adjustable beds entered a great renaissance that continues today. Once associated almost exclusively with medical and hospice care, consumers today are discovering the benefits that adjustable beds deliver for both a truly relaxing night’s sleep and for helping with issues such as heartburn and circulation.
Launched 5 years ago, the company now has almost 70 parent SKUs, and demand has been so high for their products that the company launched its own manufacturing facility in Florida. This plant helps the brand maintain inventory levels and meet customer demand while maximizing cost-effectiveness. The U.S. Manufacturing arm of the business will produce roughly 35% of the company’s orders by end of year, which will open up doors for private label SKU development. This percentage will rise as the business perfects its manufacturing and builds economies of scale.
Their current primary vendors for top selling adjustable beds are manufacturers in Thailand, with raw materials for mattresses sourced from multiple vendors. These varied supply lines have kept them active and secure over the years. At the start, this brand was selling just 5 models of adjustable beds, 3 lines of mattresses, and a few accessories such as sheets and pillows. Sales took off quickly, with their classic adjustable bed line becoming their most popular product, representing 30% of gross revenue.
Carrying an average order value of $1,807, sales remain strong throughout the year with no low periods, while revenues soar during the holiday season with boundless profits in the fourth quarter.
This offering gets their products through the door by an adjustable bed to each client, which they then upsell through the addition of a specialized mattress that can be included as part of a bundle that draws incredible audience attention. Utilizing this powerful strategy, the company is then able to sell accessories such as bedding, sheets, and more to the client. This has been enormously successful, not only in driving sales but also in becoming one of the company’s most valuable marketing tools and repeat order drivers, resulting in a higher than normal LTV and lower CAC. A bed is a symbol of comfort and the part of home that everyone looks forward to, building on this, word of mouth growth and customer satisfaction are invaluable tools.
The products are sold on their branded Shopify website as well as on Amazon, the latter of which makes up 75% of sales. The brand enjoys tremendous reviews from satisfied customers who emphasize the comfort, adjustability, and impact on their sleeping patterns. With so many glowing 5 Star Ratings, the company now earns 72,000+ average monthly visitors at their Amazon shop, and 45,000+ to their Shopify site.
Shipping an average of 40+ products a day (and growing) from their warehouse, this company has made a name for themselves in customer service and quality. Demand is so high that the company keeps a 60-day supply of inventory, and new orders are placed weekly from suppliers in Thailand, China, India, Mexico, Turkey, Russia, and the U.S. Those partners often ship directly to Fulfillment By Amazon, although the company does have the warehousing space to stock its own SKUs for shipment. The newest piece to the company’s arsenal, manufacturing, will be a game changer for the company, enabling them to manufacture new products, such as mattresses, mattress toppers, dog beds, pillows, sleep accessories, and bulkier items made of foam – all on demand, without waiting for shipping bottlenecks and those associated (and rising) costs.
This company has kept up its best seller ranking by maintaining inventory levels that boosts their Amazon sales velocity. Having their own manufacturing facility dramatically improves the ability to remain consistent and guarantee that they can continue ranking among the best sellers of adjustable beds on Amazon. Springing the brand forward, this company leverages a vibrant marketing campaign that runs PPC ads on Amazon, Facebook, YouTube, and Google to drive traffic, while organic traffic is boosted through their SEO program that includes a backlink strategy, use of affiliate influencers, and keywords in product descriptions.
From a scale perspective, this company could increase its social media marketing campaigns to directly reach their base of consumers. From native advertising to a strong blog on the website featuring home décor tips and the benefits of adjustable beds, this brand could expand traffic extraordinarily. Video marketing represents another great opportunity on sites such as YouTube and Instagram, which would help build brand awareness in the future.
Operating with an experienced team in place, this business supports 16 full-time workers, including directors to handle manufacturing, catalogs, logistics, and IT, managers to oversee the warehouse, customer experience, and sales, and a controller, customer experience associate, logistics scheduler, and warehouse associate. The current owners now spend between 10 and 40 hours per week operating this business, primarily managing their large team, and focusing on forecasting.
With a new manufacturing facility now online, this offering presents a phenomenal opportunity for a buyer, particularly when considering the near endless scale options. The most obvious approach, which the company is now exploring, is to continue expanding SKUs with new in-house brands and accessories. These manufacturing capabilities will enable the company to take on a higher level of orders and deliver products faster, which boosts customer service and will generate even stronger word of mouth advertising in the future.
This company’s rewarding history is reflected in its rising number of SKUs, unmatched customer reviews, and high volume of orders.
And this is just the start, as people’s lives move to center increasingly on the home, the comforts, furniture, and customization available become more and more important. This company stands to see exponential growth in the coming years and all a new buyer has to do is reap the benefits.
