Grow Your Profits with an Ecommerce Website Selling Saunas and Hot Tubs – 92% Growth Rate & $4,200 Average Order Value – Low Working Capital Needed
Website Closers presents a tremendous opportunity to own an innovative eCommerce website that has swiftly become the largest online dealer of Hot Tubs and Saunas in the country. Over the last year alone, this company has seen its business grow by a stunning 8,000% while developing a reputation for fast delivery times, high-quality products, and top-notch customer service. With growth trending towards a 64% increase in sales this year again, this offering stands on the precipice of explosive success.
OPERATIONS
This company’s smart and cost-effective strategy was to secure licensing agreements with top manufacturers of hot tubs and saunas for relaxation, weight loss, wellness, health, and entertainment. The majority of products are made in the U.S. and are shipped directly by the manufacturer, creating a low working capital threshold for the business. This impactful framework allows customers to get their orders fulfilled right away, without the need for costly storage and shipping on the seller’s part.
The majority of products are made in the U.S. and are shipped directly by the manufacturer, creating a low working capital threshold for the business. This allows for fast delivery times and reduces the need for costly storage and shipping.
MARKETING AND KEY METRICS
The company has benefitted from a combination of paid and organic marketing tactics. One highly effective method has been their SEO program which uses a blog, along with long tail keywords to drive organic traffic. Their organic clicks are steadily growing by 10% per month. On the paid advertising side, this brand leverages Google PPC initiatives to find qualified buyers, while also using social media sites such as Facebook, Instagram, and Pinterest to bring new customers to their website. The results have been stunning with their website now averaging 10,000 sessions per month, including 30,000 in the last three months, which included 22,000 new, unique visitors.
The company has a scalable sales channel through their website, which averages 10,000 sessions per month. They also have opportunities for growth through product diversification and marketing to other businesses, such as luxury construction firms and spa chains.
The company has achieved a 92% growth rate with an average order value of $4200. They have 256 SKUs and an impressive email database of 3,200. Their website averages 10,000 sessions per month with a significant number of new, unique visitors.
The company’s customer base includes outdoor enthusiasts, luxury shoppers, homeowners, and health and wellness enthusiasts. The demographics of their customer base are strong, appealing to customers in the top 10% income bracket.
BUSINESS MODEL & RESOURCES NEEDED
The company employs a full-time customer service representative who handles all customer service requests and answers general questions about products.
THE INDUSTRY
The company operates in the luxury home products industry, specifically selling saunas and hot tubs. The demand for luxury home products, including saunas and hot tubs, is increasing as more people become homeowners and look for ways to improve their health and comfort. The market for these products is growing globally, and this company is ideally positioned to capitalize on this trend. Examples of competitors in the industry include SaunaSpace, Almost Heaven Saunas, and The Sauna Shop.
OPPORTUNITIES TO SCALE
One highly effective opportunity to scale is product diversification; adjacent categories such as hot tub care and cleaning products, steam showers, and generators, could turn many one-time customers into steady repeat business. Increased social media marketing and SEO programs to boost organic traffic could also widely expand this business’ customer base.
Asking Price: $1,000,000
Gross Income: $1,834,000
Cash Flow: $201,356
Year Established: 2018
Employees: 2
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