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SBA Pre-Qualified eCommerce Brand | Tools & Personal Protective Gear | Consistent Growth Every Year | 11 Years in Business | 20% Repeat Orders | $150 AOV

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Website Closers® presents an SBA Pre-Qualified eCommerce Retailer that has spent more than a decade as an authorized reseller of high-quality Professional-Grade Hand Tools and Personal Protective Equipment, sourced directly from the manufacturers they represent, and sold with competitive pricing.

The company has gone through a rigorous initial underwriting process with our lending partners, which has resulted in SBA Pre-Qualification. This allows Qualified Buyers to acquire this business for as little as 10% down with the balance of the SBA Loan amortized over 10 years.

Since all their SKUs are sourced in the U.S., the company is able to provide fast delivery speeds and has grown to the point where it can offer customers a very large array of 38,000+ products, with at least 900 among their best sellers. At a solid Average Order Value of $150, the company is doing particularly well with Do-It-Yourself customers who are home enthusiasts, have a home workshop, and make repeat purchases on products that lend themselves to their ongoing hobbies. These customers are also an excellent source of word-of-mouth referrals that have enabled the company to continue its growth trajectory.

Their products are diverse enough that the company appeals to a wide section of target industries, including construction, agriculture, aerospace, government, and manufacturing. The company’s tools are sold year-round and not impacted by seasonal factors, although they do have some items, such as their cooling towels and shirts, that enjoy peak sales in the summer months, and jackets and face liners that get higher sales in winter.

The company also benefits from diversified sales channels. Amazon now represents 61% of the company’s sales, up from 41% in 2019, while the company’s website was 34% of sales in 2023, and eBay, 5%. The company’s focus in recent years has been on growing its Amazon site, with plans to eventually do the same for its eBay platform.

This business represents a clear opportunity for a U.S. Buyer to acquire this company and then scale it quickly by expanding into new markets such as automotive parts, and also by enhancing its presence on social media to include an influencer marketing campaign.

Business Broker Takeaway

Our analysis of this business shows that the value propositions present are strong for a first-time buyer looking to get into the online space. We are excited about this business for 3 important reasons:

1. Highly Efficient Operations. The company now ships nearly 200 packages a day and maintains high levels of customer satisfaction because of its fast deliveries. The company has a hybrid inventory model, where they stock their fastest-selling SKUs for quick shipments, and otherwise rely on drop shipping from the manufacturers for other products. The company’s suppliers were strategically chosen because of their capability for quick turnaround time, and this company maintains approximately $100,000 worth of inventory at all times to keep up with demand.

2. Wide Diversity of Products. The company has taken pride in being able to offer its customers such a diverse and wide range of tools and products that are made in the US and come with lifetime warranties. Having been in operation for more than a decade, they can successfully offer personalized customer service to both suppliers and buyers. Customers have come to rely on this brand for high-quality products and the company’s Repeat Customer Rate has soared to 45% of their revenue as upsells get stronger. The company appeals to DIY customers, designated buyers for other businesses, and business customers that include trade professionals. The company has done exceptionally well at identifying customers who have recurring needs and marketing to them for repeat business.

3. Vibrant Marketing Plan. The company’s marketing is diverse and includes PPC ads used on Google, social media marketing on Facebook and Instagram, email marketing to a database of 29,000+ subscribers, and an SEO program on their website that includes a blog. The company’s content marketing strategy has been highly effective, giving the company vibrant organic traffic to its website and bringing them 15,200+ unique monthly visitors.

The Company

Launched in April 2013, the company has developed strong relationships with top brands in the industry as resellers. The company is now in the process of adding new suppliers in the field of automotive tools to open up new markets for them. The company is giving its customers more variety, and a reason to return for upsells.

This is also expected to boost sales in another way: by having alternate sources for any given product, the company is not reliant on a single supplier who may reach a point where they’re out of stock on specific items, delaying shipments.

It also helps that the new brands are well-recognized within their specific niche vertical.

While the company initially had two websites – one for safety products and the other for tool products – they were merged into a single domain in 2020. During this merger, the company relied more heavily on its Amazon platform to grow sales, but overall, the company’s multiple sales platforms have given them steady year-over-year growth.

The company has a decade-long track record of recurring revenue, an impressively large catalog of products, and appeal across multiple customer demographics and top-selling verticals. For a new owner, there are plenty of paths for quickly scaling this business, which knows its audience and how to bring them on board.

This Company is Represented by:

WebsiteClosers.com

Technology, Internet & eCommerce Business Brokers

WC 3413

Asking Price
$ 1,600,000
Cash Flow
$ 388,902
Gross Income
$ 4,175,708
Year Established
2013
Employees
1

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