How to Grow an E-Commerce Business in the Outdoor Clothing and Footwear Industry
This company represents a highly profitable opportunity to step into a uniquely positioned, firmly established Amazon & eCommerce Internet Retailer in the ever-growing consumer recreational and outfitting market, focusing specifically on Outdoor Apparel, Footwear / Shoes and Gear. Running on a streamlined warehouse & drop-shipping hybrid model, this company has successfully realized year-over-year growth with minimal overhead. And the books and records for this business are very clean, qualifying it for SBA-backed financing with as little as 10% DOWN for the right buyer!
OPERATIONS
With its low-overhead business model, it has maximized profits and minimized risk with its little need for high-maintenance human capital overhead, laying the foundation for incremental sales growth to be had via multiple venues. Whether you grow the SKU line, diversify into additional marketplaces, or look at building the company across Amazon’s International platform, this business is a well-oiled machine that needs only to go faster and farther under new ownership.
This business operates on a streamlined warehouse and drop-shipping hybrid model. It has developed a unique inventory management system that allows the company to order products daily, based on that day’s sales, and receive those products within 1-2 business days, minimizing cash flow used on overloaded inventory.
MARKETING AND KEY METRICS
The business uses a smart product ordering process that is unique in eCommerce that provides a better opportunity to maximize cash flow, rather than pushing more and more capital into inventory. Such a system would work well in a number of other sectors, so just the knowledge of this inventory management system alone would be highly valuable in the hands of a portfolio entrepreneur. This unique system allows the company to order product daily, based on that day’s sales, and receive those products within 1-2 business days. By ordering inventory after sales occur, no cash flow is used up by overloaded inventory. This relationship conveys with this deal and is an amazing value proposition for both profit and scale.
This business has the potential for growth by expanding the SKU line, diversifying into additional marketplaces, and building a presence on Amazon’s international platform. By leveraging its unique inventory management system and established brand, the business can increase sales and reach a wider audience.
Key metrics for this business include revenue growth, profit margins, customer acquisition cost, customer lifetime value, and conversion rates.
This business targets a wide range of consumers who are passionate about outdoor activities, including hiking, camping, climbing, and exploring. The customer base includes outdoor enthusiasts, athletes, and individuals who value quality outdoor gear and apparel. The business has built a loyal customer base through its focus on top-brand products and excellent customer service.
BUSINESS MODEL & RESOURCES NEEDED
With its low-overhead business model, this company has little need for high-maintenance human capital overhead, minimizing the need for extensive human resource management.
THE INDUSTRY
The outdoor clothing and footwear sector is a rapidly growing industry driven by consumer demand for high-quality, functional apparel and gear for outdoor activities. This industry includes brands such as The North Face, Patagonia, Columbia, and Merrell. The market is expanding due to the increasing popularity of outdoor recreation and the growing focus on health and wellness. The COVID-19 pandemic has also contributed to the growth as more people are engaging in outdoor activities as a safer alternative. The industry offers significant opportunities for e-commerce businesses to tap into a large and dedicated customer base.
OPPORTUNITIES TO SCALE
The scale opportunities for this business are vast. The company’s unique inventory management system can be applied to other sectors, providing potential for expansion into new markets. Additionally, the business can expand its product offering, reach new customers through targeted marketing campaigns, and explore partnerships with other e-commerce platforms. The scalability of the business allows for unlimited growth potential.
Asking Price: $699,000
Gross Income: $2,500,000
Cash Flow: $225,000
Year Established: 2013
Employees: 18
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