Website Closers® presents a thriving eCommerce Brand specializing in and setting the industry standard for Low-Voltage and Christmas Outdoor Lighting Solutions. It has garnered a loyal following of D2C customers and is witnessing B2B sales growth by targeting professional installers.
The outdoor lighting market has experienced a significant surge in popularity in recent years, driven by a combination of factors, including the convenience of online shopping, the tradition of festive lighting during Christmas, the desire for safety and aesthetics, and the demand for cost-effectiveness. In 2021, the market was valued at $12.99 billion and is projected to reach $48.2 billion by 2030. Factors including the rise in home ownership and the need for well-illuminated roadways, streets, businesses, hotels, and resorts will drive this 15.68% growth rate.
Online shopping platforms, particularly Amazon, have played a crucial role in the development of the vertical. Consumers are increasingly turning to these platforms to browse and purchase a wide range of outdoor lighting products. The convenience of online shopping allows individuals to compare prices, read reviews, and easily have their purchases delivered. This has made it more effortless than ever for homeowners to find cost-effective outdoor lighting solutions that meet their needs and budget. It is, therefore, no coincidence that the founders of this business, with a background in lighting, have achieved tremendous success selling these products online. By developing solid marketing materials, the brand delivers visually appealing consumer products that customers can purchase and install themselves or with minor assistance from professionals.
One of the major drivers of demand for outdoor lighting is the tradition of decorating homes during the Christmas season. Christmas lighting has become an integral part of holiday traditions, with homeowners lighting up their exteriors with colorful displays. This has created sustained demand for products such as bulbs, wires, and accessories that provide an affordable way to transform homes into festive wonderlands. Management has capitalized on this demand and now enjoys 30% of revenue from this line.
Alternatively, safety is a driving factor for outdoor lighting. Well-lit outdoor spaces provide a sense of security, deterring potential intruders and creating a safer environment. Homeowners are increasingly seeking outdoor lighting solutions that enhance safety and offer long-term energy savings. Energy-efficient LED lighting options have gained popularity due to their cost-effectiveness and durability, making these products available to an extensive new customer base. This company understands this and provides high-quality solutions for homeowners.
The desire for aesthetics and ambiance in outdoor spaces has contributed to the sector’s popularity. Homeowners are looking for affordable options that add visual appeal to their gardens, patios, and landscapes. With the availability of budget-friendly lighting fixtures and creative design ideas, outdoor lighting can transform ordinary outdoor areas into inviting and enchanting spaces.
This company sources its customized products from several Asian suppliers, with whom the owners have built excellent relationships. Orders are placed monthly, and inventory levels vary based on seasonality. Christmas lighting, for example, is purchased upfront to sustain Q4 demand. In contrast, landscape lighting is unaffected by seasonality, and between 4 and 6 months of stock is maintained to avoid stock-outs. The branded products are dispatched weekly from a warehouse to replenish inventory at Amazon FBA facilities.
The marketing strategy is primarily focused on PPC. Ads are run on all listings to maximize exposure, complemented by listing optimization, curated bundles, and quality video and graphics.
The typical customer is split evenly between genders, aged 35 to 65, who are homeowners or DIY enthusiasts. Bulbs and lighting fixtures are commonly consumables that need to be replaced over time, and these customers return to update their systems with new components. Recently, due to effective marketing and competitive pricing, the brand has witnessed a significant increase in orders from professional installers around the country.
One employee works full-time as a warehouse manager, shipping inventory to Amazon FBA, handling returns and customer inquiries, and preparing new product listings.
The owners endure a light workload of between five and ten hours weekly. Primary tasks include researching new products, optimizing listings, reviewing inventory, and placing orders with suppliers.
Graphics design and development are outsourced to third-party contractors.
The projections for the continued growth of the outdoor lighting market are optimistic. As consumers continue to prioritize safety, aesthetics, convenience, and cost-effectiveness, the demand for affordable outdoor lighting solutions is expected to rise. Manufacturers and retailers are responding to this demand by offering a wide range of cost-effective options, further fueling the market growth.
This is a rare opportunity to acquire a reputable, profit-generating business with a well-established client base, a reliable supply chain, a fantastic track record, and 5-star reviews. A new owner can operate the-well oiled, remote, turnkey operation without any electrical skills, and projections indicate a 25% revenue increase over the next year.
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