Website Closers® presents an eCommerce business with more than a decade of experience marketing products that enhance the enjoyment of homeowners’ outdoor living space, something a rapidly growing number of Americans want today. The reason? Homeownership is increasing and people are showing a renewed interest in making their back patio and yard someplace that’s relaxing, enjoyable, and easy to maintain. It’s also appealing to homeowners that … while their typical indoor furniture usually has a shelf life after too much use, … outdoor furniture is made to last a very long time and to endure whatever nature delivers. Today, outdoor furniture is a growing and exciting market, with new variations including eco-friendly, designer coverings and use of recycled materials.
SBA Prequalified! This business has been through a rigorous vetting process by our 3rd party lending partners and they have certified this business as pre-qualified for Qualified Buyers. What this means is that a Qualified Buyer has the opportunity to acquire this business for as little as 10% down, amortized over an entire decade at very attractive interest rates. These terms are backed by the U.S. Government and helps provide an element of trust in the business since it has already gone through an initial diligence review. It also allows a buyer to achieve an ROI faster on this business than perhaps others on the market.
This industry is profitable. The Outdoor Furniture Market exceeded $15.7 billion in 2020 and is projected to grow at more than 5.9% through 2027. The trend in recent years has been for homeowners to focus on improving outdoor spaces that create more comfortable and appealing ambiance in gardens, patios, and porches. Since these products are also used in some hotels, resorts and other commercial properties, the demand keeps growing.
This company has attracted healthy year-round sales for outdoor amenities that include patio heaters, fire tables, fire pits, patio umbrellas and other types of patio furniture and accessories. These products have become very popular with buyers because they add warmth, functionality, and livability to their outdoor settings. The company, which makes its SKUs available exclusively on Amazon, has found a wide and receptive audience through that eCommerce channel. Their success is based on a combination of having the right SKUs, marketing, and strong referrals.
The business operates well all year. Although outdoor furniture would seem to be something people mainly buy in spring or summer, seasonality is not a factor for this company. Their diverse product line is a key reason for that. The brand markets both outdoor patio products and hearth and patio heaters, which seasonally balance one another out, with the outdoor products experiencing strong sales from April to June, and the heaters from October to December. Their patio umbrellas and other outdoor furniture make up 37% of gross profits, while their hearth is close by at 35% and the patio heaters and parts are an additional 18%.
With up to 400 products available, customers are easily able to find what they’re looking for, and conveniently on a sales platform that already attracts millions of shoppers. This has given the company a solid footing in the niche space of home goods that specialize in outdoor areas. With a high Average Order Value of $173, sales are thriving … the typical customer is a homeowner with above average income levels, with sales coming from both men and women, between the ages of 30 and 65.
Logistics are First Rate. The company is now making 30 shipments per day, and they put a focus on fast shipping. The brand uses both Fulfillment By Amazon and a 3PL warehouse for shipments, and they stock up to $800,000 in inventory to keep up with sales. Orders come in so quickly that the company places up to 15 new orders from their suppliers each month, while their 3PL has a real-time online inventory management system that helps ensure fast shipments.
Virtual assistants are employed to handle customer service inquiries and order fulfillment, while ensuring that any customer feedback is responded to quickly and efficiently. With their FBA products being sold Amazon Prime, the company receives positive feedback from buyers for their quality products and strong customer service operations. They have an impressive 94% Seller Rating on Amazon, while their average product rating on the site is 4.7.
Customer like what they’re getting and are providing the right kind of reviews to help drive sales. A growing 10% of sales come from Repeat Customers.
Marketing is simple but effective. Being on Amazon, the company has relied on PPC ads on that platform to help drive sales, which has been effective so far. Sales have surpassed $4.5 million and continue rising. Digital marketing does offer this company some excellent scale options. The company does not utilize either social media or email marketing, and both are great options for expanding their customer base. Video marketing demonstrating how their SKUs look in picture-perfect outdoor settings would be ideal on sites such as YouTube and TikTok.
A major option would be to launch the brand’s own Shopify website. That would provide the company with another strong sales channel, while the site could be used to collect customer emails and launch an effective newsletter that focuses on upsells and promotions. An SEO program could be launched on the site that includes keyword optimization to generate higher search engine rankings, and a blog on the site to attract more viewers.
This brand has already demonstrated that it has what customers are looking for when it comes to decorating their outdoor space and turning it into something truly special, and there are other product categories they could profitably expand into, such as BBQ grills, tools and related accessories. This brand has a phenomenal track record which would be easy for any buyer to use as the starting point for incredible growth. Contact Website Closers today so our brokers can demonstrate how appealing this offering is for an ambitious buyer.
