Clean Air and Water Solutions: A Consumer Products E-Commerce Brand
This eCommerce retailer sells water and air filtration products under multiple brand names, ranging from well water filtration bundles to countertop filters. Products meet NSF/ANSI 58 standards and the company has a strong presence on Amazon and eBay, with additional sales from Walmart and their own website. Sales have grown steadily from $1.31 million in 2017 to $1.55 million in 2018 with TTM earnings of $550,000 as of December 2018. The company has potential for rapid growth, especially in the area of SEO and sales channel diversification.
OPERATIONS
This eCommerce business ships most of its products from its own warehouse and handles an average order size of $127. They have a network of affiliates that could be leveraged to sell more products on their website. Additionally, the products could also be sold to wholesale distributors and other retailers. While most of the process could be outsourced to Amazon FBA and other 3PLs if desired, this company would benefit from dedicated attention in-house to help it scale quickly.
This eCommerce business ships products from their own warehouse and uses Amazon FBA for additional sales and convenience. The company could benefit from more centralized supply chain management attention.
MARKETING AND KEY METRICS
This company’s sales mix is currently dominated by Amazon (60%) and eBay (remaining balance). There is potential for additional sales growth on Walmart and the company’s own website. Affiliate marketing programs could also be implemented for growth.
There is significant opportunity for growth in sales channels for this eCommerce business. Walmart and the company’s own website represent low-hanging fruit opportunities for additional sales. Additionally, there is potential for Amazon and SEO-based sales to continue to grow.
This eCommerce business reports earnings of over $500,000. With an option for an SBA-backed 7(a) loan, a qualified buyer can achieve an ROI relatively quickly with only a 10-15% down payment.
The customer base for this eCommerce business is diverse and ranges from homeowners to businesses to DIYers and beyond. This wide range of customer segments makes the potential for growth and expansion even greater.
BUSINESS MODEL & RESOURCES NEEDED
This eCommerce business has only one employee and would benefit from additional workforce expansion in order to focus on continued growth and management.
THE INDUSTRY
The water and air filtration industry is seeing significant growth as consumers become more educated about their health and the health of their environment. With rising concerns over pollution and compromised water quality, purchasing air and water filtration systems has become a top priority for many consumers. There are few other industries with this level of growth potential, making this eCommerce business an extremely valuable investment opportunity. One of the industry’s leading brands, Brita, has seen continued growth year after year since it first hit the market in 1966 through its significant brand marketing campaigns.
OPPORTUNITIES TO SCALE
This eCommerce business has the potential to scale in numerous ways. With over 300 listings on Amazon and eBay alone, additional sales channels and suppliers could be added to accelerate growth. The company also has the option to explore product line expansion and add-on sales.
Asking Price: $1,950,000
Gross Income: $1,555,208
Cash Flow: $548,766
Year Established: 2013
Employees: 1
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