High-Growth Sauna & Hot Tub Ecommerce Brand: $4,200 AOV & 73% Growth Rate – Solid Manufacturing Contracts in Place
This eCommerce brand is a leader in the hot tub and sauna industry, with a remarkable 73% year over year growth rate. They offer high-quality products and exceptional customer service, and have solid manufacturing contracts in place for reliable supply. With a focus on niche traffic and strategic partnerships, they have become one of the largest online dealers in their industry.
OPERATIONS
The business was founded in 2018 and initially focused on selling high-end home saunas. They have since expanded to include hot tubs and other accessory products. The company leverages strategic agreements with top manufacturers to provide cost-effective products for relaxation, weight loss, health, wellness, and entertainment. With a drop ship model and a diverse product line, they maintain steady sales throughout the year.
The majority of the manufacturers are located in the United States and have mutually beneficial agreements with the seller. They ship high-end products directly to the consumer, utilizing a drop ship model. This approach keeps working capital low and allows for fast delivery to customers.
MARKETING AND KEY METRICS
The business dedicates 30 hours each week to marketing and utilizes a combination of search engine optimization (SEO) and paid advertising campaigns to drive traffic to their website. They have an average of 10,000 monthly sessions and a growing email database of valuable contacts. There are opportunities for new revenue streams and potential partnerships to increase brand awareness.
The business has a strong online sales channel, with potential for growth through additional social media marketing and search engine optimization strategies. Expanding into adjacent verticals and creating partnerships with spa chains, luxury construction firms, and fitness centers could generate a high delivery B2B sales strategy.
The company has an impressive average order value (AOV) of $4,200, and their organic site conversions have steadily increased by 10% each month. They have seen consistent growth in website sessions and new unique visitors. With strong sales potential and scaling opportunities, this business offers an outstanding return on investment.
The business has a diverse customer base of outdoor enthusiasts, luxury shoppers, successful homeowners, and wellness enthusiasts. They have accumulated over 3,000 email contacts from purchasers in the top 10% income bracket, making their acquired contacts highly valuable.
BUSINESS MODEL & RESOURCES NEEDED
The business has three employees, including the owners. They dedicate time to marketing, website maintenance, sales, and customer service. A full-time customer service representative handles all customer inquiries and maintains relationships with suppliers. The owners are known for exceptional customer service and have built a reputation for allowing customers to have conversations with live sales consultants.
THE INDUSTRY
The hot tub and sauna industry is thriving, with a growing number of people seeking to create fun, healthy, and relaxing environments in their homes. Demand for saunas is high from October to May, while hot tubs are in high demand from April to October. With the market for luxury home products expanding, there are opportunities for revenue growth and expansion into adjacent verticals.
OPPORTUNITIES TO SCALE
The company has significant scaling opportunities, including expanding into new product categories such as hot tub care and cleaning products, dome saunas, portable saunas, massage chairs, and more. They can also explore partnerships with related businesses to expand their customer base and increase brand awareness.
Asking Price: $780,000
Gross Income: $2,521,072
Cash Flow: $219,061
Year Established: 2018
Employees: 3
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