Website Closers® presents an acquisition that has seen unbelievable growth since inception. A Luxury Furniture eCommerce Retailer, it has snagged valuable partnerships with household names such as Tempur-Pedic and Ashley Furniture in order to provide customers with more than 165,000 top-of-the-line furniture products. Their affordable prices and high-quality products have led to them experiencing an incredible YOY Growth Rate of 402% in 2020 alone, along with a strong Average Order Value of $545.27. Growing fast, the company has quickly made a name for itself in a thriving market.
Along with Tempur-Pedic and Ashley Furniture, the company is partnered with other popular brands such as Coaster Fine Furniture, CrownMark, and Alamont. Their close relationships with these brands have let them offer a wide array of luxury furniture pieces for their customers, including, but certainly not limited to, products in the Dining Room, Office, Outdoor, and Bedroom Verticals.
This allows them to appeal to anyone looking to add an elegant touch to their home, regardless of what room they happen to be decorating. Many customers come away satisfied, leading to a 20% Repeat Order Rate as these satisfied buyers decide to make the company their go-to brand for their furnishing needs.
Though the current number of offerings listed on their website is impressively large, the company has an additional 250,000 SKUs ready to be added as well. These new products, once listed, will not only make their current product line even more diverse, but also ensure that the company will be able to better cater to whatever look or aesthetic a customer has in mind for their home.
Another benefit to their partnerships with other brands means that, despite the sheer number of products they offer, the company doesn’t have to worry about inventory or warehouse management. They are 100% dropship, freeing them from the headache of manufacturing, and saving money that would have been spent on warehouse and inventory costs (usually a very big cash flow need for the furniture vertical). This model effectively allows them to enjoy returns on every sale, at only a fraction of the expense of the working capital that’s required for other businesses in this industry.
The model, coupled with a strategically developed management system, has led to a workload of only 10 hours per week for the current owner. Their responsibilities consist of communications with the company’s vendors, bill payments, and high-level customer concerns.
The rest of the business is handled by a team of seven loyal and experienced employees. These experienced employees include a logistics manager, a claims manager, and multiple customer service representatives, taking away much of the stress that might come with managing such a sizable operation.
A buyer could reduce the daily workload by utilizing automatic invoicing. By hiring on additional staff, they would be able to easily support the brand’s massive growth while still providing impeccable service to their customers.
There are many opportunities at the brand’s disposal to scale profits up even further. On top of the 250,000 SKUs waiting on deck, the company can support up to 1 million different products, meaning that their selection can be diversified to an extent that’s almost dizzying, if a buyer chooses to do so.
As all sales are done on their official website at the moment, another channel for growth would be to expand onto popular online retail platforms such as Etsy, Amazon, eBay, and Facebook Marketplace.
This would increase the streams of revenue that the brand brings in, strengthening sales far beyond what they already see.
The company implements a unique marketing strategy based off Google Ads, SEO, abandoned cart retargeting, and other low-cost methods. This structure will be provided to the buyer, and while it has been overwhelmingly successful, it can be improved upon.
The new owner could utilize their considerable email database of more than 143,000+ contacts for marketing campaigns, and to bring in new purchases by announcing special deals and discounts.
They could advertise on Google Search, Amazon, and other sites to improve traffic and bring attention to any new sales channels they build as well.
A fantastic way of strengthening organic growth would be to cultivate their presence on social media. Platforms such as Instagram, Pinterest, and Facebook are used by millions, if not billions, of consumers , and are all widely used to view and share images.
The company could use these websites to bring attention to their products and establish themselves firmly as a household name. They could also partner with influencers and affiliates to publicize the brand and make their own social media accounts all the more popular.
The nature of the company and its products also leaves enormous potential to develop industry relationships with interior designers, real estate agencies, resellers, and decorators. These groups all prioritize making a home look as beautiful and inviting as possible and are also inclined to buy furniture in bulk for their businesses.
By partnering with these clients, the company could obtain steady additional sales, and catch the attention of new customers who spot some of the brand’s furnishings in a house.
There is boundless potential to be found within this acquisition. Seeing a monthly rate of 3 million visitors to its website, it offers a sleek digital storefront, a wealth of valuable partnerships, and a steady source of income regardless of how its new owner approaches it. Its sturdy foundation leaves plenty of room for growth, making for a comfortable pick for any buyer.
