A Promising Opportunity: 14-Year High Growth Ecommerce Retailer in Hearth & Patio Equipment
This eCommerce retailer operates in the high-end Hearth and Patio Furniture Sector. The brand has over $13M in sales in the past 12 months, with a 100% YoY growth rate. They specialize in outdoor living products, including outdoor fire pits, fire glass, outdoor kitchens, patio furniture, umbrellas, grills, fireplaces, and fireplace accessories. 70% of sales are drop-ship, and 30% are private label, expanding their SKU catalog to 2,500 products. The company has a strong social media presence and a high recurring customer rate. The industry is evergreen and is an opportunity for capable buyers.
OPERATIONS
The business model has 70% of sales coming from drop-shipments and 30% from private label. The company carries over 2,500 SKUs and is constantly expanding its product offerings to meet market demands. The business model is profitable with a high recurring customer rate. The brand also focuses on customer service, helping customers with how-to videos, blog posts, and online tutorials to enhance their experience with outdoor living.
The company has hybrid shipping practices, with 30-35% of shipped products stocked and shipped in-house and drop-shipping handled by a partner company. The business can fulfill over 60-120 orders per day in-house.
MARKETING AND KEY METRICS
The company uses online advertising and email marketing, and has developed an engaged social media following through YouTube, Instagram, and Facebook accounts. There is an opportunity to expand onto Amazon and other social media platforms such as TikTok and Pinterest.
Sales are primarily through the company’s website, and customer emails are used to target and continue retention with loyal customers. Sales can be expanded onto Amazon and other social media platforms. The business has a proven track record of strong advertising and online marketing.
The business has a strong social media following and over 68,000 email subscribers. The business has over $13M in sales in the past 12 months with an average order value of $527. The company carries over 2,500 SKUs and has a solid recurring customer rate.
The business has a loyal customer base who continue to buy their products due to the high-quality and customer service. There is an opportunity to expand offerings to address customer demand and increase customer loyalty.
BUSINESS MODEL & RESOURCES NEEDED
The business is run full-time with 18 employees and one remote full-time subcontractor. The company requires staff with an intermediate understanding of how the gas and fire industry operates.
THE INDUSTRY
The high-end Hearth and Patio Furniture Sector is an evergreen industry that will endure for some time. Homeownership and improvements are steadily becoming more important, and this industry will only continue to flourish. The company specializes in outdoor living products such as fire pits, fire glass, and outdoor décor, securing a strong position in a growing industry.
OPPORTUNITIES TO SCALE
There is significant growth potential with the extension onto Amazon, Facebook, TikTok, and Pinterest, and there is an opportunity to expand private label offerings and boost net margins. The business model is profitable with high recurring rates and the potential for further expansion into more outdoor living categories.
Asking Price: $12,000,000
Gross Income: $13,041,692
Cash Flow: $2,663,528
Year Established: 2007
Employees: 20
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