A Profitable B2B Ecommerce Brand in the Outdoor Home Adventure Markets: 30% YOY Sales Growth for the Last 4 Years
This 20-year-old business specializes in offering outdoor home and adventure niche products to both commercial and individual customers. 75% of the company’s sales come from kayaks, boats, camping, and fireplaces. With 1,500 SKUs across multiple categories, the company focuses on approximately 150 customers and has recently added two new categories, which are expected to grow significantly. The business encourages D2C sales through eCommerce platforms and marketing initiatives. The company operates primarily on a wholesale business model and a highly efficient drop shipping concept.
OPERATIONS
This business operates in a centralized Canadian warehouse, has two 3PL partners on both the East and West coasts, and follows the hybrid inventory model of stock and drop shipping between warehouses. The company sources products from reputable Chinese manufacturers and distributes them to prominent outdoor enthusiast brands. The owner spends most of their time sourcing products, creating sales plans, maintaining finances, building customer relationships, and inventory planning.
The business operates out of a centralized warehouse situated in Canada. Additionally, two 3PL Partners on Canada’s East and West Coasts manage product receiving and storage. The current setup enables the company to average 150 shipments daily and offers room for additional growth.
MARKETING AND KEY METRICS
The business is entirely wholesale, focusing on 150 customers. New management could focus on D2C sales through eCommerce platforms, SEO, and marketing initiatives. The enterprise’s existing Amazon account and the expansion of secondary sales platforms to multiple countries could spur exponential growth.
Currently this business’ revenue comes primarily from wholesale customers with a highly efficient drop shipping concept. The business is expanding its secondary sales platforms to multiple countries offering opportunities for expansion.
The currently available key metrics for this business include it being a B2B eCommerce platform that focuses on approximately 150 customers. The business has 75% sales from fireplaces, kayaks, boats, and camping products. The Outdoor Furniture Market exceeded $15.7 billion in 2020 and is projected to grow by more than 5.9% through 2027. The business has a 30% YoY sales growth over the last four years, generating $8.6M in gross income and a net profit of $1.9M in 2021.
The company’s customer base is primarily focused on commercial customers, including prominent outdoor enthusiast brands.
BUSINESS MODEL & RESOURCES NEEDED
The company has built a full team over time, which includes an office manager, procurement manager, and sales manager, supplemented by a bookkeeper, accountant, administration department, and warehouse staff. This team will transition to the new owner and be crucial to the company’s success.
THE INDUSTRY
This eCommerce business operates in the outdoor home and adventure niche that has grown by more than 5.9% through 2027. The recent surge in home sales has led to an increase in sales for this company. According to market research, this trend is expected to continue even beyond the pandemic. The company’s range is expected to expand as well as additional products beyond its existing categories, creating new opportunities for growth.
OPPORTUNITIES TO SCALE
The potential growth opportunities for this business include D2C sales through eCommerce platforms, SEO, and marketing initiatives. Additionally, the hybrid inventory model of stock and drop shipping offers room for growth. The company has a phenomenal track record and can be used as a starting point for incredible growth.
Asking Price: $7,800,000
Gross Income: $8,611,041
Cash Flow: $1,947,939
Year Established: 2002
Employees: 11
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