Established Online Furniture and Home Decor Store with Financing Available
This 12-year established, organically-driven online retailer sells over 22,000 SKUs of furniture and home decor directly to consumers via its own website. With a diversified product lineup from top brands, their strong relationships with suppliers and vendors ensure a smooth operation with highly automated drop-ship fulfillment. The business enjoys consistent revenue growth and offers financing alternatives to customers via Affirm.com. While operating traditionally to date, the business presents significant opportunities for growth by expanding its online marketplace presence. Perfectly positioned for single-owner management anywhere in the world, this eCommerce retailer has grossed over $2M in sales annually.
OPERATIONS
This Company has been growing organically since its founding, focusing exclusively on online sales and drop-shipping. They have over 22,000 SKUs available for sale and have established strong relationships with a diverse set of suppliers enabling a highly automized fulfillment process. New growth opportunities exist through expanded relationships with market leaders like Amazon, Houzz, and Overstock.
Through years of strong relationships and trust-building efforts with suppliers, this business has established a tried-and-tested supply chain. This enables highly automated fulfillment processes through various warehouses throughout the United States. The entire operation is highly efficient and can be run by a single operator if required.
MARKETING AND KEY METRICS
The company has enjoyed significant growth through organic marketing methods – capitalizing on more traditional techniques like email campaigns and SEO. Furthermore, the Company has partnered with Affirm.com, offering instant financing for online purchases. This has enabled the Company to not only generate more sales but also maintain healthy profit margins as they offer alternative financing methods to large credit card fees. The business is ripe for investment in modern paid marketing methods.
Currently, sales are primarily through the company’s main website. However, there has been no presence on the largest marketplaces in the home decor and furniture industries. This presents significant growth opportunities through expanded distribution channels.
With gross annual revenue surpassing $2M, this company has an average ticket value of $800. While 60,000 people visit their website per month, there has been no traction on the largest marketplaces online. They benefit from a low cost structure with minimal inventory risk due to their drop-ship model. Additionally, they have enjoyed strong relationships with both their vendors and clients over their 12-year history.
Outside of a robust traffic stream to their website, the company has numerous repeat customers and enjoys strong relationships with its suppliers. The company’s catalog of products appeals to a wide range of consumers with diverse home decor tastes.
BUSINESS MODEL & RESOURCES NEEDED
With a turnover of only $190,000, this business is easily managed by a single owner/operator who can focus on strategy and measurable growth. With excellent established relationships with suppliers, there is no need for managing large personnel teams, greatly reducing overhead.
THE INDUSTRY
The furniture industry comprises businesses that manufacture or produce furniture, which encompasses dining tables, sofas, beddings, cabinetry, among others. This industry has witnessed a steady increase in demand thanks to an unrelenting growth in the population. An increase in real estate, pent-up demand, and a surge in the construction of new homes, apartments, as well as offices have all led to a surge in growth in this sector. As buyer preferences evolve, niche areas and online furniture retailers like this have established themselves as go-to destinations for customers seeking quality products that cater to their specific style preferences.
OPPORTUNITIES TO SCALE
The business is ripe for investment along several strategic directions, including: (1) expanding current partnerships with large eCommerce vendors like Amazon, Etsy, and Wayfair, and/or (2) further developing their paid marketing strategy. They have enjoyed robust revenue growth through traditional methods and the addition of new marketing techniques, partnerships or marketplaces could help to drive strong expansion.
Asking Price: $665,000
Gross Income: $2,009,980
Cash Flow: $190,352
Year Established: 2006
Employees: 2
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