Brand in the Outdoor Living Products Vertical: Big Box Clients Include Wayfair, Home Depot, Target, Lowes, Walmart & More
This B2B eCommerce brand specializes in the outdoor living products vertical and boasts a variety of big box clients including Wayfair, Home Depot, Target, Lowes, and Walmart. The company manufactures and imports solid wood-based outdoor living and gardening products that are easy to assemble, functional, and well-designed. A total of 120 unique items are offered with new SKUs added annually. With a high reputation for quality products, the company’s B2B clients have a 100% repeat order rate, and DTC sales through Amazon are growing. As demand for outdoor living products in North America continues to rise and new clients are added to the company’s portfolio regularly, sales are expected to increase rapidly.
OPERATIONS
The company manufactures and imports solid wood-based outdoor living and gardening products that are easy to assemble, functional, and well-designed, all of which are packed unassembled (RTA) using a network of 3PLs. With new SKUs being added every year, the company has ample opportunities to expand its customer base. The company relies on a small number of full-time employees who handle daily tasks, processing more than 100 orders per day during peak season. The current owner is willing to remain with the new buyer after close, either through a transition or through a longer role, including communications with suppliers and new product development.
All products are branded with the Company’s Trademarked Brand, and once assembled, they are ready to drop ship anywhere in North America using a network of 3PLs. Products are manufactured based on in-house specifications by various factories overseas. The current product selection consists of 120 SKUs and is packed unassembled (RTA) with easy-to-follow assembly instructions inside the package.
MARKETING AND KEY METRICS
The company traditionally has not relied much on marketing efforts to attract new customers but is known for high-quality products. They have sold products on Amazon without any significant marketing, making them a major candidate for scale-up. New efforts include running PPC ads and enhanced SEO on their blog, posting regularly on Facebook, Instagram, and Pinterest, and investing in email campaigns. The company offers a variety of unique products that are highly appealing to consumers shopping online for natural wood-based products for the home.
Most orders are drop-shipped one unit at a time to individual customers through the company’s B2B clients, including Wayfair and Target. The 20+ clients the company works with are very successful in selling its products, and new clients are being added regularly. The company has recently received interest from other retailers, including Ashley Furniture, Pottery Barn, and Belk Stores.
The company’s B2B clients have a 100% repeat order rate, and DTC sales through Amazon are growing. The average order size is $350, and sales volumes are increased during peak season that occurs from March through July and again during the holidays. The company expects to experience rapid sales growth as new clients are added regularly and the demand for outdoor living products in North America continues to rise.
The company offers one-of-a-kind, well-designed, and attractive products made of decay-resistant wood. Its products are popular among customers shopping online for mid-range and stylish natural wood products for the home. The company relies on repeat business from its B2B clients, which include Wayfair, Home Depot, Target, and Walmart.
BUSINESS MODEL & RESOURCES NEEDED
The current owner employs just three full-time employees who handle daily tasks and orders. The owner is flexible and willing to remain with the new buyer after close, either through a transition or through a longer role, including communications with suppliers and new product development.
THE INDUSTRY
The outdoor living industry is expected to reach $2.9 billion by 2028, with a rise of demand of 65% for outdoor living projects in the U.S. in 2020-2021. The company has been cultivating the support and appreciation of major retailers, including Wayfair, Home Depot, Target, Lowes, and Walmart more, for more than a decade. This customer loyalty and the company’s expertise in crafting outdoor and gardening products made of decay-resistant wood have proved popular for customers shopping online for mid-range and stylish natural wood products for the home.
OPPORTUNITIES TO SCALE
A potential scale opportunity for the company would be to create additional outdoor products in new categories such as outdoor deep seating, outdoor dining, outdoor cooking with BBQs and fire pits, larger format outdoor products, and indoor products. Running PPC ads, investing in email campaigns, and improving SEO are all potential scale-up strategies for the company. The company has significant opportunities to scale its manufacturing by expanding to additional factories and developing additional products.
Asking Price: $6,900,000
Gross Income: $5,343,258
Cash Flow: $1,478,479
Year Established: 2010
Employees: 2
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