High-Volume Ecommerce Retailer in Home Goods, Electronics Repair Tools, and Electronic Accessories – 4,500 Daily Shipments
This eCommerce company offers a wide range of high-demand products across various markets, including home goods, electronics, repair tools, and electronic accessories. With a 35% return customer rate and a positive seller rating of 100%, it operates solely through eBay, carrying more than 4,400 individual SKUs and using two 4,000 square feet warehouses to fill an average of 4,500 daily shipments.
OPERATIONS
The company consistently books robust sales, with $12.5 million in TTM sales and $1.8 million in TTM earnings through September 2020. The owners expect $14.3 million in sales and $2.2 million in earnings for the calendar year, representing a 170% and 100% YoY growth, respectively. Currently employing two managers, part-time warehouse workers, and cherry pickers who handle 400-600 items daily, new ownership could cut costs dramatically with a white-label model.
This flourishing online seller packs and ships more than 4,500 orders every day. The business currently has its stock model, and the addition of an in-house SKU line and a partial or full white-label model can result in considerable cost reduction.
MARKETING AND KEY METRICS
The business operates solely on eBay but has trademarks for its brand and is approved to become an Amazon seller, which could be a profitable additional sales channel. The company uses no other advertising initiatives than SEO practices and has no in-house brand, so there is significant potential for growth by setting up other advertising channels.
The company operates solely on eBay, and there are no advertising initiatives or in-house brands. The addition of an in-house SKU line, expanding to other platforms like Amazon or Walmart and implementing advertising initiatives are strong strategies to increase growth.Their sales channel consists of direct-to-consumer and wholesale operations. Scaling the wholesale operations would be possible through partnerships with local smoke shops and gift boutiques.
With impressive results such as a 35% return customer rate, a seller rating of 100%, and an astounding $12.5 million in TTM sales and $1.8 million in TTM earnings through September 2020, this eCommerce company has a solid business model. The company expects a YoY growth of 170% in sales and 100% in earnings for the calendar year.
The customer base of this business is broad, ranging from those in need of repair tools and supplies, smart device components and accessories, electronic accessories, game console components and accessories, and home goods.
BUSINESS MODEL & RESOURCES NEEDED
Two owners manage the company, spending 20 hours a week each, but their weekly responsibilities can be delegated to other employees as soon as a new owner purchases the business. The current staff includes two managers, part-time warehouse workers, and cherry pickers who handle 400-600 items daily.
THE INDUSTRY
This company operates in the eCommerce industry, with a focus on home goods, electronics, repair tools, and electronic accessories. The industry is growing, with eCommerce expected to account for over 17% of all US retail sales by 2022. With platforms such as Amazon.com, Walmart.com, and Target offering potential for growth, the sector is ripe with opportunities.
OPPORTUNITIES TO SCALE
Advertising initiatives, the creation of an in-house brand, and expanding to other platforms such as Amazon.com and Walmart.com offer exceptional growth opportunities for this business. With no current sales or advertising outside of eBay, crafting strong SEO and social media campaigns could help to increase traffic to the company on eBay, even without expanding to other platforms.
Asking Price: $8,900,000
Gross Income: $13,346,795
Cash Flow: $2,213,263
Year Established: 2013
Employees: 8
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