Website Closers® presents a unique opportunity to acquire a well-established company comprising a thriving eCommerce Brand and an eCommerce SaaS platform that has been meticulously honed for over two decades.
The eCommerce business for sale specializes in offering a vast assortment of office supplies for all industries, including electronics, breakroom necessities, janitorial products, tools, manufacturing items and equipment, networking and IT products, and home and commercial heaters and grills. The buyers for this business are focused on B2B buyers, especially those that utilize the GSA system, a platform that makes it more efficient for the federal, state and local governments to buy products.
The proprietary SaaS Platform, launched in 2002, was one of the foremost end-to-end shopping carts able to bring enterprise-level eCommerce functionality to businesses of all sizes. Through years of extensive development and analysis of consumer behavior and analytics, the platform has been built into a complete solution that can scale with any business. It is supported by experienced eCommerce specialists and software teams.
Business Broker Takeaway
Our analysis of this business shows that the value propositions present are strong for a firsttime buyer looking to get into the online space. We are excited about this business for three important reasons:
- The eCommerce brand appeals to a vast audience and boasts B2B and B2C customers, as well as multiple sales channels. These diverse revenue streams reduce dependence on a single channel, with enormous scale potential.
- The company holds a valuable General Services Administration or Federal Supply Contract for office electronics and products. This contract is valid until 2026 and renewable at the discretion of ownership for another five years. A key deal was secured at the end of 2023 and will provide significant additional revenue.
- A proprietary SaaS platform is included in the sale. The operating teams for both arms of the business work independently and have sufficient knowledge and experience to manage any challenge.
The eCommerce Brand
Operating since 2009, this arm of the business, specializing in office supplies, caters to customers in the US and internationally.
Products are sourced from US-based approved distributors or directly from manufacturers. Favorable and flexible payment terms have been negotiated, typically on a Net 30 basis. Multiple sales channels exist, including an Amazon presence. The majority of inventory is DropShipped, aside from the Amazon FBA model, for which stock is maintained and sent to the marketplace’s facilities. This hybrid inventory model, combined with excellent supplier terms, is beneficial for cash flow, requiring minimal working capital from a new owner. Only $15,000 to $30,000 of stock is kept on hand throughout the year.
The company is well positioned to boost sales significantly, given its multiple revenue sources and proficient global support team. Its income streams include direct sales from 6 websites offering thousands of SKUs, quote-based bidding for large opportunities in numerous countries, and government supply contracts. Additionally, thousands of ASINs are available on Amazon, eBay, and Walmart, with new integrations developed for sales in Canada, Mexico, Latin America, and the Middle East.
The GSA contract enables the brand to obtain regular orders from the US armed forces, federal agencies, US embassies, educational institutions, and school districts. Over 95,000 SKUs are listed on FedMall, and over 3,000 are under GSA. Management has recently secured an annual contract for a large consortium of California school districts comprising over 100 schools. It was awarded to them in December 2023 and is expected to generate an additional $50,000 to $100,000 in annual revenue in 2024
Marketing, Seasonality, & Staff
Google AdWords, email campaigns, and organic social media drive marketing efforts. The business experiences low seasonal variations in sales as most clients are B2B.
A W2 employee has worked in the capacity of CEO for the past 12 years. Five contract customer service staff and a contract support/marketing team are in place. A new owner could assume all CEO responsibilities since the remote staff can handle all order processing and customer service functions independently.
SaaS Platform
Founded in 2002, this proprietary cloud-based platform enables clients to set up unique eCommerce storefronts with tailored support for customization. It has 16 active and longstanding paying customers in B2B and B2C retail.
Industrial manufacturing companies of all sizes are spending considerable money to build eCommerce portals that require comprehensive workforce, money, and time resources. These portals are typically constructed to integrate their extensive catalog of products and spare parts with accurate inventory and pricing updates. The portals are usually cloudbased, facilitating a unique global environment for each of their distributors, like a hub and spoke. This platform can deliver such capability at a much lower cost and time frame, making it highly desirable.
Scale Opportunities & Personnel
Tremendous potential exists in securing customers that require customized eCommerce portals for small, medium, and large industrial manufacturing companies and mid to large etailers with thousands of products requiring customized front and back-ends.
The team comprises various contractors, including an IT admin who provides managed services, three software engineers, a UX/UI expert, and a front-end specialist.
This company is poised for continued profitability and growth under a motivated new owner and can realize a swift return on investment by pursuing various scale avenues.
