WebsiteClosers® presents an eCommerce Brand that offers products through its Membership-Based Online Marketplace. The company now enjoys recurring revenues for its catalog of outdoor and indoor goods, gadgets, and electronics, and revenue from the Membership Program is now 30% of its monthly sales, which are increasing so quickly that the company now ships 200+ orders a day
The company’s catalog of Home Furnishings and Indoor & Outdoor products has brought them a fast-growing customer base, and at a $40 Average Order Value, they now maintain a solid and growing Repeat Order Rate. As participation in their Membership Program keeps growing, the company has enjoyed 72% earnings growth since 2023.
A key reason for the healthy sales is the research the brand puts into selecting its laser focused product line. Their products get reviewed and selected by an internal Product Research Team that determines which new items will generate the highest demand from their membership subscribers. Because of the popularity of its catalog, which has increased to 150 SKUs, the company’s Amazon Prime-like membership program has grown substantially.
The company likewise benefits from having Google automatically add its product listings to Google Shopping. Running Google Shopping ads has given this brand tremendous exposure and played a significant role in driving sales higher.
Their products also have a lower level of competition in the marketplace and include items that customers want but are having a challenging time finding. Thanks to upsells from new products, their Lifetime Customer Value is now $100. With more than $7 Million in Sales, customers appreciate what they’re getting and the brand’s Shopify website gets lots of highly enthusiastic 5-star reviews.
This business represents a clear opportunity for a Buyer to acquire this company and scale it rapidly by expanding sales channels, putting their listings on such popular eCommerce platforms as Amazon, eBay, and Walmart, and using proven digital marketing tools such as social media and email campaigns, and an SEO program that full optimizes their website and includes a blog.
Business Broker Takeaway
Our analysis of this business revealed several key value propositions for a buyer looking for an online company operating profitably in fast-growing, evergreen verticals and with the ability to scale quickly. We anticipate buyers will recognize that value for 3 important reasons:
1. Strong Customer Demographics. Sales have primarily come from women aged 50 and older with above average income, who share an interest in home furnishings and products that make their lives more convenient. Another thing their customers have in common is lots of disposable cash to spend. A rising percentage of their customers is eagerly signing up for the brand’s membership program, which entitles them to 50% off all products on their website. As this program has become better known and embraced by so many of its loyal buyers, membership revenue now makes up a large portion of its recurring revenue and remains steady year-round.
2. Turnkey Operation. For a buyer, this automated business is a great opportunity to focus on scaling this brand while an experienced and skilled team handles daily tasks. That team includes managers in charge of operations, fulfillment, customer service, and product research, and also includes the team members who review new items as future listings. Because of the work they do, the current ownership has a small workload, usually no more than 5 hours per week, with a focus on uploading new products and monitoring their Google ad campaigns.
3. Unique Business Model. The company’s sales have been strong thanks to its Research team which has a knack for finding products that people want, and for the membership program that provides convenience and savings to their customer base. As a result, the company enjoys rising recurring revenue, including from repeat buyers. Because the company has a diverse selection of SKUs, some products enjoy higher sales in the summer months, and others are ideally suited for use in winter. That has enabled the company to grow without being reliant on a few SKUs to drive revenue. In addition, many of the company’s products are evergreen and enjoy healthy sales year-round.
Company Operations
First launched in 2022, the company has quickly demonstrated great skill in discovering products that quickly attract vibrant sales and bring new customers to their website. The brand has also created a solid foundation for the business to operate under.
Once they select new products to add to their catalog, the orders are sent to their supplier, who gets them listed on the website. The supplier also stores inventory for the brand, free of charge, and handles shipping once orders come in. The company also stands out because its packaging is uniquely designed for them.
The company has also demonstrated great marketing skills. Their Google ad campaigns continue expanding their customer base, and these fully automated PPC ad spends on Google Shopping include meta ads used to retarget people who visited the website but haven’t yet made a purchase.
The company also boosts its organic traffic through carefully chosen keywords on its website and in product descriptions. This has enabled the brand to enjoy high search engine visibility. The company now gets a huge 300,000+ unique monthly visitors to its site, while an email database of 100,000+ subscribers is ideal for future e-newsletters focusing on promotions, special deals, and launching new products.
With its high recurring revenue, fast-growing customer base, solid marketing campaign, and viable scale options, a buyer can walk right in and begin growing this business. That growth could include continuing to launch new products since their research team has a proven skill for finding SKUs with plenty of appeal to their customer demographics.
