5-Year Outdoor Lighting Brand with 35% YOY Growth and 33% Repeat Order Rate – DTC, Amazon, & B2B Sales
This eCommerce brand offers outdoor lighting fixtures for patios, gardens, and holiday decorating. Their line of 119 SKUs includes LED spotlights, pathway lights, and Christmas lights with 33% repeat customer rate and 35% YoY growth. They operate through DTC, Amazon, and B2B sales channels, with a 40% seasonal sales in October through December and peak sales during spring and fall. The company maintains 4-6 months’ inventory and has established strong relationships with multiple factories.
OPERATIONS
The company has done exceptionally well attracting customers who love putting up Christmas lighting every holiday season, but they’ve also demonstrated that outdoor lighting is marketable all year round. The company has started to experience a rising number of sales to professional lighting installers. Focused entirely on DTC sales to date, the company is poised to expand into the wholesale market and target the thousands of independent installers that market outdoor lighting products. They are constantly adding new products to their line and have a solid understanding of what type of products will generate the highest profits.
The company maintains 4-6 months’ worth of inventory to keep up with demand and avoid being out of stock if sales pick up. Their products are manufactured by multiple factories that the company has built strong relationships with, and there are customization options for the packaging and product configuration of items sold under their brand name. Since they handle most of their sales through Amazon, they take advantage of Fulfillment by Amazon to ensure fast shipping and strong customer service.
MARKETING AND KEY METRICS
Their Amazon platform accounts for most of the company’s sales, so they take advantage of PPC ads to drive sales higher and introduce their products to new customers. They appeal to homeowners, DIY users, and people looking to replace their older outdoor lighting fixtures. Audience on Amazon has been diverse, with buyers usually between 35 and 65 years old, and they have won numerous Amazon Badges for their most popular SKUs. The company also plans to explore video marketing on popular sites like YouTube, TikTok, and Instagram to introduce their products to a wider audience.
The company primarily operates through Amazon and DTC sales channels, with 40% seasonal sales in October through December and peaks during spring and fall. They have started to experience a rising number of sales to professional lighting installers, paving the way to expand into the wholesale market. They plan to list on Walmart eCommerce soon. The company also plans to explore video marketing as a strategy to introduce their products to a wider audience.
The company has an Average Order Value of $165, with 40% seasonal sales and steady sales throughout the year for their landscape lighting products. The Repeat Customer Rate is 33% and rising, with some products having an 80% reorder rate. The company maintains enough inventory to keep up with demand, with 4-6 months’ worth of inventory and a 1,000 sq. ft. warehouse.
Their customers are homeowners, DIY users, and people looking to replace their older outdoor lighting fixtures. Their products have a mass appeal when priced affordably to the average consumer. They have won numerous Amazon Badges for their most popular SKUs. The company is now enjoying rising sales to professional lighting installers, giving them their first break into B2B sales.
BUSINESS MODEL & RESOURCES NEEDED
The current ownership focuses on researching new products, optimizing their listings, and reviewing inventory with suppliers. They employ a warehouse manager who ships inventory to Amazon FBA and handles returns and customer inquiries.
THE INDUSTRY
Outdoor decorative lighting is a major cultural trend with a $13 billion market value, and eCommerce is leading the way. The company appeals to homeowners and professionals alike, with 40% of sales coming from Christmas lights and 60% coming from low-voltage lighting for outdoor patios and gardens, community entrances, and municipalities that promote pedestrian safety. The company has untapped potential to expand their marketing beyond PPC ads, and they are exploring video marketing on sites like YouTube, Instagram, and TikTok. Outside lighting fixture markets are projected to enjoy a major increase in the coming years as consumers embrace a more visually stunning outdoor property.
OPPORTUNITIES TO SCALE
The company has nearly 30% profit margins and is growing rapidly. They offer untapped potential to expand their marketing beyond PPC ads and explore other sales channels. The introduction of new products will send profits skyrocketing. The company is also poised to enter the wholesale market, targeting the thousands of independent installers that market outdoor lighting products.
Asking Price: $1,500,000
Gross Income: $957,910
Cash Flow: $336,647
Year Established: 2017
Employees: 1
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