13-Year-Old Branded Novelty Apparel & Special Effects Home Decor Ecommerce Store
The target is a branded, 13 year international eCommerce Retailer in the Novelty Apparel, Special Effects and Home Decorations Categories – featuring over 24,000 products ranging from simple costumes and décor to animatronics and complete haunted house sets, including completely custom build-to-order SKUs. Featuring 169% YOY Growth in net profit over 2017 and almost 40% top line growth, this is a currently scaling opportunity to get into a segment with high customer LTV and strong brand loyalty patterns.
OPERATIONS
This business differentiates itself with a line of branded & proprietary seasonal products thanks to an in-house design team producing one of a kind looks that can’t be found anywhere else. Selling exclusively from a DTC eCommerce website, this is a seasonally dependent business peaking from August to December, catering to every major and minor holiday applicable. This is a fairly niche segment in terms of destination and impulse buy patters, and this business sees a $75 average ticket with a repeat customer base of 75%.
This business operates on a drop-shipping model, allowing for easy and efficient supply and logistics management. This means that inventory is not held by the business, but rather shipped directly from the suppliers to the customers.
MARKETING AND KEY METRICS
Thanks to a smartly situated and completely drop-ship operations platform, this otherwise very bespoke business can be operated almost anywhere with no prior experience in the space required of new ownership – this seller is motivated and willing to train for transition. Standing head and shoulders above its competition even without an Amazon presence, this business’ value proposition is very clear – new ownership can rapidly scale and incrementally grow its buyer base with the simplest of efforts, expanding into Amazon, Etsy, Pinterest and other socially salient sales channels.
The sales channels for this business currently include a DTC eCommerce website. However, there are growth opportunities to expand into other sales channels such as Amazon, Etsy, Pinterest, and other socially salient platforms.
The key metrics for this business include 169% year over year growth in net profit, almost 40% top-line growth, a $75 average ticket size, and a repeat customer base of 75%.
The customer base for this business consists of individuals who are interested in novelty apparel, special effects items, and unique home decorations. These customers are often looking for unusual and one-of-a-kind products to express their personal style and interests.
BUSINESS MODEL & RESOURCES NEEDED
This business has 2 employees, including a motivated seller who is willing to provide training for a smooth transition.
THE INDUSTRY
The novelty apparel and home decor industry is a unique niche market that caters to customers looking for unique and unusual products. This industry includes businesses that specialize in selling novelty apparel, special effects items, and home decorations. Examples of companies in this industry include ThinkGeek, Spencer’s, and Spirit Halloween.
OPPORTUNITIES TO SCALE
There are significant scale opportunities for this business, including expanding into additional online marketplaces such as Amazon, Etsy, and Pinterest. By leveraging these platforms, the business can reach a larger audience and increase its customer base. Additionally, creating strategic partnerships with other retailers or influencers in the novelty apparel and home decor industry can also help drive growth.
Asking Price: $299,000
Gross Income: $554,792
Cash Flow: $83,781
Year Established: 2006
Employees: 2
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