Grow Your Business with a Branded E-Commerce Company in the Garden Tools Industry
An internet company specializing in a branded product line of garden tools. The products are sold on Amazon using Fulfilled By Amazon platform and the company’s polished website. The brand sells only its own line of tools, thus lowering the overhead costs and maximizing profits. There is a possibility for incremental sales growth via multiple venues such as growing the SKU line, wholesaling, or ramping up social marketing. With a low-overhead FBA model, the business requires fewer human resources as outsourcing is only done when the tasking is required.
OPERATIONS
The company has created a niche, branded product line that sells on multiple platforms, including its own eCommerce website, as well as on Amazon.com. Given its ease of operation, intellectual property value and simplicity by which the business can be transferred to a new owner (with no need for office or warehouse space), this is a great opportunity for an entrepreneur to pick up a trademarked brand and accelerate it to the next level.
With a low-overhead FBA model, outsourcing only occurs when necessary and orders can be fulfilled through Amazon’s platform to minimize handling and shipping costs, benefiting the customer. This benefits human resources as the model requires fewer employees, and the cost and risk of inventory storage and management are transferred to Amazon complying with a low-risk inventory model.
MARKETING AND KEY METRICS
The brand currently sells both on its highly polished internet website as well as its highly-rated Amazon seller central account. With little to no SEM or paid advertising of any kind, the organic growth of the website is a great sign that in the right hands, the business can be taken to a whole new level by simply growing the website alone. Entrepreneurs can also increase sales volumes through growing the SKU line, wholesaling, or throttling up social and marketing strategies for this business.
There are many areas for incremental sales growth for this ecommerce company. Entrepreneurs can increase sales volumes through growing the SKU line, wholesaling, or throttling up social and marketing strategies. Another growth channel is to expand the Amazon channel by selling in other countries, thus diversifying the potential customer base.
Low overhead costs and maximum profits are achieved due to the low-overhead FBA model. Given the flexibility of human resources, outsourcing only occurs when the tasking is necessary. The business has monthly revenues of $91,666.66, monthly cash flow of $40,000.00 and a gross income of $1,100,000. The 20% repeating order rate is also an indication of a strong customer base.
The company has loyal customers who have made 20% of repeat orders with little to no SEM or paid advertising of any kind. With a desirable niche market in garden tools and a low-overhead FBA model that sells only its own branded line of tools, this company has maximized profits and minimized risk with a loyal customer base ready for the next owner.
BUSINESS MODEL & RESOURCES NEEDED
This internet company requires a small number of employees. With a low-overhead FBA model that sells only its own branded line of tools, this company has been able to maximize profits and minimize risk with an on-demand/as-needed human capital model, outsourcing only when the tasking is required.
THE INDUSTRY
The ecommerce industry has experienced rapid growth. It was valued at $2.3 trillion in 2017 and was expected to reach $4.88 trillion by 2021. Online sales in garden supplies reached $2.9 billion in 2020 in the U.S. This figure is expected to reach $4.15 billion by 2024. The increase is attributed to a rise in the population of homeowners aged 18-34, millennials who tend to have larger indoor and outdoor living spaces, and are more likely to garden. A cultural shift towards interior design, outdoor hobbies, and home renovation has also driven up demand.
OPPORTUNITIES TO SCALE
Opportunities for scaling this ecommerce company include launching new products, creating marketing strategies, expanding the SKU line, and moving to other platforms such as Etsy or Walmart. The business could also develop its product line or carry out inventory management practices on their Amazon Fulfillment by Amazon (FBA) store.
Asking Price: $1,200,000
Gross Income: $1,100,000
Cash Flow: $480,000
Year Established: 2014
Employees: 5
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