The target is a Home Improvement eCommerce Retailer with strong technology and marketing support built in, realizing exceptional profits on a minimum OPEX platform, thanks to a comprehensive SKU lineup focused on high-volume destination and consumable products for the home improvement consumer. This primarily drop-ship retailer sells Direct to Consumer with a highly polished website, as well as on Amazon, Jet, Wal-Mart and other salient channels.
This Internet Retailer’s robust technology platform supports a large number of SKUs (400,000 +) using strategic vendors to drop ship products within a given branded vertical. The back end of the platform allows for an easy implementation by almost any user, and a continuous price search & positioning of managed SKUs to maximize sales revenue, profit and velocity dynamically. To date the company has been “technology focused on the mechanics and the process”, and it has only recently engaged one of the top digital agencies in the US to help add the marketing expertise the company has lacked to foster repeatable and transferable marketing processes. This continued investment is a level of value rarely seen in this space, building in value-added features and usability for new ownership regardless of skill level.
As such, this company offers huge scale opportunities to grow over the next few years, manage up to 1,000,000 SKUs and realize $30 Million USD in revenue with very low overhead, low staffing requirements and no inventory requirements except for opportunistic buys to support high margin addons and cross-sells. Additionally, a new buyer could take the data from sales and create a fine tuned private label brand of hardware. Sellers can support the technology going forward or train as needed with long or short-term support relationships after acquisition; thanks to proprietary in-house technology platforms and features, this company is uniquely situated to continue its exceptional growth for the foreseeable future in the hands of the right buyer.
