Home Automation and IoT Products Company: Wholesale to Amazon Vendor Central, Walmart, All In-House Designs & $100,000 Average Purchase Orders.
A company that designs and sells smart products for use in many different applications, specializing in home improvement, lawn and garden care, and an ultrasonic cleaner. The company operates as both a B2B and DTC eCommerce business, selling 90% of its products directly to Amazon’s Vendor Central and Walmart. The products are engineered in-house for use in many different applications.
OPERATIONS
With their in-house manufacturer experienced in the research and development of advanced technologies, the company has become a leader in the home automation industry. The company takes a multifaceted approach to marketing their products, which includes PPC ads on Google and Facebook, an email marketing campaign to drive upsells, and an SEO program. They maintain a 4.5 seller rating on Amazon.
The company owns a 5,000 square foot warehouse and can handle 30% more volume. To keep up with demand, the company maintains up to $3 million worth of inventory, with most inventory turning over within 2-3 months. Employees include customer service representatives, Amazon and Walmart account managers, and warehouse managers who coordinate the packing and shipping of inventory.
MARKETING AND KEY METRICS
The company has a diverse approach to marketing, including PPC ads on Google and Facebook, an email marketing campaign to drive upsells, and SEO that includes keywords in product descriptions and a blog on their website.
The company’s sales platforms are strong, with 90% of their products sold directly to Amazon’s Vendor Central and Walmart. The brand receives weekly purchase orders valued on average at $100,000+.
The company has achieved a 31% YoY growth rate with sales conducted across Amazon and Walmart. They receive weekly purchase orders valued on average at $100,000+. The company brings in $6 million in revenue with gross margins consistently at 50%+ and receives net income that is consistently in the 7 figures. The company has a recurring revenue of 10% through its repeat customer base.
The company’s smart home products are popular with homeowners, the home construction industry, and energy-saving enthusiasts.
BUSINESS MODEL & RESOURCES NEEDED
While the current ownership focuses on tasks that include supplier oversight and managing staff, the company has experienced employees with a Customer Service representative, a manager of the Amazon and Walmart accounts, and two warehouse managers.
THE INDUSTRY
The smart home market is valued at $99.8 billion in 2021 and expected to grow to $380.5 billion by 2028. This growth is driven by the rising number of internet users, increased popularity of home monitoring systems, and increased demand for energy-savings solutions. Homeowners love the technology because it’s like having a personal assistant at home that can make it easier to manage day-to-day activities. Smart homes are also being constructed more often today because they add value to a property and make them more desirable among home new generations of buyers.
OPPORTUNITIES TO SCALE
The company is poised to scale internationally through Amazon’s platforms, expand their product line to focus on the universal battery system and the app, and partner with shopping networks and Home Goods Channels to showcase their products.
Asking Price: $11,000,000
Gross Income: $6,014,036
Cash Flow: $1,950,210
Year Established: 2017
Employees: 4
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