12-Year-Old B2B Ecommerce Company Selling Promotional Items and Party Accessories – SBA Pre-Qualified
This B2B eCommerce company specializes in offering promotional items and party accessories. With over 12 years of experience, they have established strong ties within the industry and have a reputation for quality and customer service. They primarily operate on a wholesale basis, with 85% of their business coming from B2B connections. The company offers a wide range of customizable products, with an average order value of $150. They have an in-house marketing team that utilizes SEO, PPC, and social media advertising to drive sales. The company has a 2,500 square foot warehouse and employs 2 part-time independent contractors for shipping and production.
OPERATIONS
The company operates primarily on a wholesale basis, with 85% of their business coming from B2B connections. They offer over 4,000 SKUs of promotional items and party accessories, with a focus on seasonal and promotional offerings. They have a proven track record of driving consistent sales and have established strong relationships with over 3,000 loyal wholesale customers. The company utilizes both stock and dropship methods to fulfill orders, with 60% of orders being shipped internally from their 2,500 square foot warehouse. They employ 2 part-time independent contractors for packaging, shipping, and production.
This company utilizes a combination of stock and dropship methods to fulfill orders. They have a 2,500 square foot warehouse and ship 60% of orders themselves. The remaining 40% are dropshipped directly from suppliers. They employ 2 part-time independent contractors for packaging, shipping, and production. While the current supply chain and logistics operations are sufficient for the company’s current needs, there may be opportunities for optimization and efficiency improvements as the business expands.
MARKETING AND KEY METRICS
The company handles its marketing in-house and focuses on SEO, PPC, Facebook advertising, Affiliates, and a partnership with ASI, a promotional product organization. They have a strong marketing strategy in place, but there are opportunities for improvement such as organic and paid social media, website design updates, and Google Ads. Expanding selling platforms to include Etsy and Amazon could also help increase sales and consumer awareness.
The company currently focuses on B2B connections and wholesale sales, with over 3,000 loyal wholesale customers. Expanding to new selling platforms such as Etsy and Amazon could help increase direct-to-consumer sales and drive overall sales growth. Additionally, developing relationships within the party planning industry with experts such as planners, DJs, and decorators can open doors to strong repeat business. The company’s corporate offerings have been successful and bundling corporate packages such as holiday gifts and personalized promotional baskets could further drive sales growth.
The key metrics for this company include average order value, customer retention rate, sales conversion rate, and customer acquisition cost. The average order value is $150, indicating a strong potential for revenue growth. The company has a loyal customer base, demonstrated by its high customer retention rate. Improving the sales conversion rate through improved marketing efforts and expanding to new selling platforms can help drive revenue growth. The customer acquisition cost is currently unknown and would need to be evaluated to determine the efficiency of the company’s marketing strategies.
The company primarily serves a B2B audience, with 85% of sales coming from wholesale customers. They have over 3,000 loyal wholesale customers, indicating a strong customer base. The customer base includes businesses that are in need of promotional items and party accessories for their marketing campaigns, events, and corporate gifting needs. There is also potential for direct-to-consumer sales through selling platforms such as Etsy and Amazon.
BUSINESS MODEL & RESOURCES NEEDED
The company currently employs 2 part-time independent contractors for packaging, shipping, and production. As the business grows, there may be opportunities to hire additional employees or contractors to support increased demand. Human resources management would involve hiring and training employees, managing schedules and workloads, and ensuring compliance with labor laws and regulations.
THE INDUSTRY
The promotional items and party accessories industry is a highly competitive and fast-growing sector. Companies in this industry specialize in designing, manufacturing, and distributing customized products for events, parties, and promotional campaigns. Examples of companies in this industry include Oriental Trading Company, Party City, and Vistaprint. The industry is driven by factors such as corporate gifting, seasonal events and holidays, and marketing campaigns. With the rise of eCommerce and online shopping, the industry has seen significant growth and offers opportunities for companies that can differentiate themselves through product quality, customization options, and customer service.
OPPORTUNITIES TO SCALE
There are several scale opportunities for this company. One potential opportunity is SKU creation, expanding the product line to offer a wider range of promotional items and party accessories. Another opportunity is marketing enhancements, including organic and paid social media, website design updates, and Google Ads. Building relationships within the party planning industry through partnerships and collaborations can also drive growth. Finally, expanding to new selling platforms such as Etsy and Amazon can significantly increase the company’s consumer base and sales.
Asking Price: $350,000
Gross Income: $317,015
Cash Flow: $97,256
Year Established: 2008
Employees: 4
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