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NICHE ECOMMERCE SPORTING GOODS COMPANY – GREAT MARGINS!

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For sale is a great opportunity for an entrepreneur looking to get into the online space, or for one that is already present in the space, but looking to expand. This business is being offered at a very low 1X multiple with inventory due the health condition of the seller.

This is a website business that sells high quality display cases for home, office, restaurants and clubs. The cases, which range in size and style, are designed for showcasing collectibles, sports memorabilia, militaria and firearms. The quality and craftsmanship of these products make them unique and readily distinguishable from the competition. These products are assembled by the Seller, making this not only a niche product line, but also one with no product-specific competition.

The products are sold on the company’s Internet Website, which is hosted on an industry-leading eCommerce merchant platform. It is fully integrated with PayPal payment processing and features seamless integration with the UPS shipping system. Together, these components provide a best practice checkout system that is easy to operate, regardless of the experience level of the buying party. The site was built by a professional web design firm with a broad portfolio of clients. The site content and images were professionally created to ensure proper word densities, titles, and tags for SEO, as well as to create the desired shopping experience. The company also maintains active storefronts on eBay and Amazon for select products.

Affiliate marketing is provide through Share-a-Sale. To date, the company has focused sales and marketing activities on gun displays (rifle/shotgun/pistols), which account for approximately 85-90% of the company’s revenues. Marketing across numerous other collectible and memorabilia markets are poised in early stages, but should be considered an important element in any viable growth strategy.

The products are assembled/packaged and shipped from the company’s 2,500 square foot distribution facility. The majority of components were acquire and imported in containers from oversea (China) where the owner traveled to establish suppliers. Some components have been acquired domestically in support of new product lines. Light assembly is required in order to offer variations in frame style and backing color. According to the Seller, the assembly is very easy to train and will not be a problem for a buyer.

The company historically maintains inventory levels between $22,000-45,000. The company currently offers over 120 different products, although all products are variations on five base products that vary in size and have been designed to be readily re-purposed. For example, the same display case used for a military shadowbox can be positioned as a guitar case, a baseball collectibles case, or a movie memorabilia display case, by simply altering the orientation (horizontal/vertical), the front frame (5 choices), and the backing (fabric). Accordingly, each product requires various degrees of light assembly in order to offer different products in different configurations. An obvious advantage is that the product’s appearance and intended purpose is readily altered to appeal to different audiences in a variety of markets. In some units, a simple matting detail is installed under the glass to enhance the appearance and command a premium.

The business has been operated by its sole owner on a part time basis. During busier months before the holiday season, a part time person has been utilized to assist in maintaining the 1-3 day order turnaround. Initially, SEO firms were retained to optimize ranking. In 2013 and 2014 only marginal marketing efforts have been employed due to the focus on fulfilling orders. First quarter 2014 revenues are just under $20k.

Seller is retiring to focus on his health and well-being.

Asking Price
$ 60,000
Cash Flow
$ 32,000
Gross Income
$ 65,000
Year Established
2011
Employees
1 FT; 1 PT
Inventory
$27,000

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