Listen To Our Most Recent Podcast Episodes As Soon As They're Live: Here!

High Growth Sauna & Hot Tub eCommerce Brand – $4200 AOV – 73% Growth Rate – Strong Manufacturing Contracts in Place

Share:

Website Closers® presents an industry leader in the prospering vertical of Hot Tubs and Saunas. The business has achieved a remarkable 73% year over year growth rate and is a pioneer of online hot tub sales and infrared sauna development. This brand rapidly rose to become one of the largest online dealers of hot tubs and saunas and has a lot of growth potential immediately available to it. This US based business has solidified an impeccable reputation by ensuring fast delivery, high-quality products, and incredible customer service.

Founded in 2018 for the purpose of selling high-end Home Saunas, this thriving company has been cleverly designed to take advantage of niche Sauna traffic to include high-end hot tubs and other accessory products. By leveraging strategic agreements with the top producing hot tub and sauna manufacturers, this company has carved out a spanning audience by providing cost-effective products that offer relaxation, weight loss, health, wellness, and entertainment for their customers. As a result of these unshakable partnerships, their trusted manufacturers send the business between 5 and 20 interested leads each week, which leads to a steady stream of sales.

With the majority of the manufacturers being located in the United States and carrying mutually lucrative agreements with this seller, the factories ship their high-end products directly to the consumer. Utilizing this powerful drop ship model, the current ownership has impactfully kept their working capital threshold low while supporting the American economy. This advantageous framework allows customers to receive their orders quickly while eliminating the expense of storage or shipping for the seller — a winning business model.

Offering an extensive line of more than 256 SKUs, this brand’s diverse array of products helps to ensure that the business weathers the industry’s inevitable seasonality to maintain dependable sales throughout the year. With demand for saunas skyrocketing from October to May and hot tubs in high demand between April and October, this business’ skillful structure allows for strategic revenue offset during the slow seasons to create an evergreen operation.

As a result of the business’ dependence on these high-ticket items, they leverage an amazing average order value of $4,200, however, creating new revenue streams could prove tremendously powerful for increasing sales and expanding consumer appeal. Taking full advantage of this spanning opportunity, an incoming owner could dive into adjacent categories such as hot tub care and cleaning products, high-ticket items such as dome saunas, portable saunas, red light towners, massage chairs, steam showers, and generators. These options are just the start of this brand’s immeasurable scalability.

With the current ownership dedicating a cumulative 30 hours each week to marketing, website maintenance, sales, and various other tasks, this business has earned a reputation for exceptional customer service. Daily duties include managing the company’s marketing campaigns, fielding inbound sales inquiries, making outbound sales calls, following up with leads and maintaining quality relationships with suppliers. In fact, due in part to the owners savvy business acumen and the assistance of a full-time customer service representative, who handles all customer service requests and answers general questions about the products, this company has become well-known as the only eCommerce hot tub and sauna provider that allows customers to have actual conversations about their orders with a live sales consultants.

Due to the business’ strategic search engine optimization program, which utilizes long tail keywords to drive traffic, their organic site conversions have steadily increased by 10% each month and the company’s paid endeavors include Google PPC campaigns, as well as Facebook, Instagram, and Pinterest campaigns. Together, these marketing initiatives have allowed their branded website to average 10,000 sessions each month. Seeing more than 30,000 website sessions in the last three months, 22,000 of which were new, and unique visitors; this rapidly growing offering is already showing an amazing trend of consistent growth.

This company has amassed an impressive, and extremely desirable, email database with over 3,000 email contacts from purchasers in the top 10% income bracket. Having targeted outdoor enthusiasts, luxury shoppers, successful homeowners, and wellness enthusiasts, their acquired contacts are incredibly valuable.

Looking towards the future, the scaling opportunities for this business are unmatched. With a growing number of people seeking to make their homes into fun, healthy, wholesome environments and with the market for luxury home products, such as saunas and hot tubs, growing larger by the day, there are a number of ways to generate added revenue. By exploring additional social media marketing and enhancements to the current search engine optimization strategies. The lucky buyer could generate new interest in the brand through spanning audience outreach.

Moving into adjacent verticals, especially those with high customer retention rates, could be an easy way to leverage the interest that the company’s loyal customer base has already expressed. Furthermore, the new ownership could expand by creating strong partnerships with spa chains, luxury construction firms, fitness centers, and other businesses in need of hot tub and spa services, to generate a high delivery B2B sales strategy with strong brand awareness.

This hotly sought-after acquisition is primed for greatness and won’t last long. With a robust customer base, strong sales potential, a high AOV, and unparalleled scaling opportunities, this reputable company could give any buyer an outstanding return on their investment. Built on a solid foundation that includes incomparable customer service, fast delivery, and high-quality products, this eCommerce leader is on track to grow with the global market, making it a high-value target for any savvy business buyer.

This eCommerce Brand Represented by

Website Closers

Technology & Internet M&A

Listing ID: WC2399

Asking Price
$ 780,000
Cash Flow
$ 219,061
Gross Income
$ 2,521,072
Year Established
2018
Employees
3

    Send us a
    Message

    Or feel free to contact us
    at [email protected]
    or by phone: (800) 251-1559

    800-251-1559