Scaling an Ecommerce Bedding Brand with US Manufacturing Facility: 75% Amazon, 25% Shopify Sales
This eCommerce success story operates in the Adjustable Beds, Mattresses, Sheets, and other Bedding Accessories market. The company enjoys 75% of its sales from Amazon, establishing itself as a high-growth Amazon seller, and has recently transitioned to a manufacturing enterprise. The company has its own manufacturing facility in Florida that produces around 35% of its orders by the end of the year, which will help in developing new SKUs at a much lower R&D cost. The company sources raw materials from multiple vendors, and vendors in Thailand manufacture its top-selling adjustable beds. The brand currently has almost 70 parent SKUs that the company continues to expand.
OPERATIONS
The company has a warehouse from which it ships 40 plus products a day and keeps a 60-day inventory supply due to high demand. The company also has suppliers in Thailand, China, India, Mexico, Turkey, Russia, and the U.S. that send products directly to Fulfillment By Amazon. It runs a robust marketing campaign that includes PPC ads on Amazon, Facebook, YouTube, and Google to drive traffic. The company’s branded Shopify website and Amazon make up for more than 85% of the company’s sales. The company’s primary focus lies on forecasting and managing a team of 16 full-time workers.
The company has various suppliers around the world that allow the company to maintain a secure supply chain while keeping the company active. The company has kept inventory levels that boost sales velocity, and it has improved its ability to remain consistent and guarantee that it can continue ranking among the best sellers of adjustable beds on Amazon.
MARKETING AND KEY METRICS
The company has a higher than normal LTV and lower CAC due to bundles and upsell strategies that have been enormously successful. The company is also actively involved in email and social media marketing. It ranks among the top sellers of adjustable beds on Amazon and generates organic traffic through SEO strategies such as a backlink strategy, affiliate influencers, and keywords in product descriptions.
The company sells its products through a branded Shopify website and Amazon, making up more than 85% of its sales. The brand enjoys tremendous reviews from satisfied customers who emphasize their comfort, adjustability, and impact on their sleeping patterns. With many 5-star ratings, the company now earns more than 72,000 average monthly visitors at its Amazon shop and over 45,000 to its Shopify site.
The company has an average order value of $1,807 and revenues that remain consistent throughout the year, with no low periods. The company boasts of a high volume of orders and a repeat order rate of more than 20%.
The company has a strong customer base that is loyal to its brand, and the company is constantly exploring new ways to retain its customers. The company has an average repeat order rate of more than 20%.
BUSINESS MODEL & RESOURCES NEEDED
The company has a team of 16 full-time workers, including directors, managers, a controller, customer experience associates, logistics schedulers, and warehouse associates. The owners spend an average of 10 to 40 hours every week managing their large team and forecasting.
THE INDUSTRY
The bedding industry is experiencing incredible spikes due to the booming housing market. The company has scaled up as adjustable beds become increasingly popular. Its adjustable beds line represents 30% of gross revenue. The company also sells other related products such as mattresses, sheets, pillows, and dog beds. The newest manufacturing arm of the business opens up doors for third-party bedding companies looking for US-made mattresses and bedding.
OPPORTUNITIES TO SCALE
The company has limitless opportunities for scaling by expanding its manufacturing capabilities and offering new in-house brands and accessories. It could explore social media marketing campaigns, native advertising, and video marketing to reach its base of consumers. The company also has a robust email list that could be leveraged to drive more traffic to its website and increase sales.
Asking Price: $28,000,000
Gross Income: $40,329,697
Cash Flow: $5,519,733
Year Established: 2016
Employees: 18
- Two Highly Profitable Sports & Fitness Ecommerce Brands For Sale - July 8, 2023
- Branded Ecommerce Company for Baking Goods - July 8, 2023
- Trendy Baby Fashion Retailer Ready to Launch - July 8, 2023
