Website Closers presents a Home Furnishings eCommerce Superstore that has been in business for over 18 years and continues to grow its cash flow steadily year over year. Known for providing impeccable customer service and quality, they have become a top online location for stylish Imported Home Furnishings. Over the years, this brand has become a popular destination for an increasingly wide variety of bathroom products, rugs, accent furniture, lighting, and kitchen décor. Product diversification has kept them on a shelf above the competition, and they now offer over 200,000 SKUs across multiple sales channels, including their own website, Amazon, and Walmart. The company is constantly researching new items to add to their array, and truly the options are endless when it comes to home décor and furnishings.
As customers become more accustomed to shopping online, online sales of home furnishings as well as kitchen and bathroom products are unlikely to go down the drain any time soon. A booming real estate market coupled with rising eCommerce demand is set to keep this industry growing well into the future. The Global home decor market is now valued at $616.6 billion and projected to reach $838.6 billion by 2027 as home sales drive demand for new products. While specialty retail and furniture stores had been the prominent segment of this market until 2019, the eCommerce segment is expected to enjoy the highest growth over the next few years as consumers have become more comfortable going online to compare products and search for specialty items not available in their local stores.
Established in 2003 in a far more specialized niche, this brand began exclusively as an importer of hand-made and hand-decorated porcelain as well as glass products from centuries-old factories in the Czech Republic and Poland. While that was their original focus, fast-rising sales enabled the brand to shift beyond those early SKUs and offer a considerably wider range of home décor products, including tabletop items, rugs, furniture, lighting products, bedding, and bath items. Despite the rapid growth from their original roots, one thing that has remained consistent has been the brand’s efforts to remain an exclusive importer of products that are difficult to find in the United States. This advantage keeps competitors out of the limelight and allows them to reach corners of the market with a taste for the unique.
The brand has a high Average Order Value of $250, and their top-selling items now include bathroom products and rugs, which both represent 35% of gross revenue, and accent furniture, which is an additional 15%. Amazon has become their top-selling platform, and now represents 70% of sales, followed by 20% from Walmart and Houzz, and 10% on their Shopify website. Their imported products attract stellar 5-Star reviews on Amazon, and their demographics center on mid-to-high income customers, mainly between the ages of 30 and 55. There have been no significant seasonal trends for this brand, except for a rise in sales around the holidays when the company starts its major promotional campaigns.
Highly effective email marketing campaigns including sales and seasonal promos drive revenues through an email database of over 2,000. Their targeted email marketing has given the brand a 10% Repeat Customer Rate, and those numbers are rising. PPC ads have also been a cornerstone of the brand’s marketing efforts. Ads are run on Google, Facebook, Instagram and Amazon, and the company’s SEO program – including the use of top-ranking keywords in products descriptions and a blog on their website – has provided a major boost to its organic traffic, giving the brand 14,000 average monthly visitors throughout 2021.
This eCommerce business is highly automated, requiring no more than 20 hours per week to operate. All products are shipped directly from the suppliers’ warehouse via an impeccable 100% Drop Ship Model. The company does not stock inventory or use Fulfillment by Amazon, which is a testament to the very strong relationships the brand has with its importers and distributors. One of the top tasks for current ownership has been researching and acquiring new SKUs in various product categories, as well as maintaining strong relationships with vendors and handling accounts payable and marketing. The company has two employees, both customer service representatives who manage 20 customer service inquiries a day by phone and up to 30 daily emails.
Constantly striving to find the most unique, charming products for their customer base has given them rising revenues and great scale potential. Right now, the company doesn’t carry any private label products, but the opportunity exists for this company to design its own Proprietary and Trademarked Products to be manufactured by their suppliers. The company already devotes time each week to finding new items likely to become a hit with their customers and the opportunity exists to drive sales much higher through their own specialized SKUs.
There are additional growth opportunities, including expanding onto new marketplaces such as Wish and eBay, and using Amazon to expand sales internationally, using that eCommerce giant’s platforms in Canada, Europe and Australia to send profits soaring.
There are additional marketing opportunities, including expanding their SEO program and email marketing campaigns, increasing their PPC ad spend, and developing a more comprehensive social media presence, including video marketing on sites such as YouTube and TikTok.
It’s no surprise that this brand’s early success with imported glass and porcelain items was so profitable that they’ve expanded to more than 200,000 SKUs within the wide field of home furnishings, and now have the rave customer reviews to demonstrate how carefully they selected each item. Now the brand is riding the wave of customer preference for online shopping to considerably higher levels of profitability.
For a buyer, the fact that terrific options exist to increase those profits even more vigorously should make this a very appealing offer. This isn’t an opportunity investors will want to leave on the table.
