Luxury Furniture Ecommerce Website Sees 400% Year-on-Year Growth
This profitable eCommerce business in the luxury furniture vertical has experienced 400% year-over-year growth. With over 16,500 SKUs and strong relationships with luxury goods providers, the company has a powerful supply chain model. The average order value is $435, providing significant revenue potential for the business.
OPERATIONS
The company currently operates on a fully drop ship model, maximizing shipping capabilities and minimizing cash flow constraints. With a team of 7 full-time employees, the business runs smoothly with a logistics manager, claims manager, and customer service representatives. The current owner spends an average of 10 hours per week overseeing the operations.
With a fully drop ship model, the company eliminates the need for buying and storing inventory, resulting in flexible supply and logistics operations. The business carries competitively priced, high-quality furniture pieces across various popular categories.
MARKETING AND KEY METRICS
The company currently relies on organic growth, abandoned cart retargeting, and Google advertising. Opportunities for marketing expansion include developing a social media strategy, leveraging the brand’s email database, and exploring additional online sales channels such as Amazon, eBay, and Walmart.
Currently, the company sells exclusively on its own website. There are significant opportunities for growth by expanding to other online sales channels like Amazon, eBay, and Walmart. Additionally, investing in social media marketing and affiliate marketing can boost awareness and drive sales.
Key metrics for this business include revenue growth rate, average order value, customer acquisition cost, customer lifetime value, conversion rate, and return on ad spend. These metrics provide insights into the financial health and performance of the business.
The customer base for this business includes individuals and businesses seeking luxury furniture products. The average order value of $435 indicates a target market that values quality and is willing to spend on high-end items to enhance their living or working spaces.
BUSINESS MODEL & RESOURCES NEEDED
The business has a team of 7 full-time employees who handle orders, customer contact, website management, and other operational tasks. The current owner primarily focuses on vendor communications, bill paying, and high-level customer concerns.
THE INDUSTRY
The luxury furniture industry is a highly competitive and visually focused industry. It caters to consumers who seek high-quality and stylish furniture pieces for their homes or businesses. Examples of other companies in this industry include Wayfair, Restoration Hardware, and Ethan Allen.
OPPORTUNITIES TO SCALE
The scalability of this business is evident through the potential for product and category expansion, channel diversification, affiliate marketing, and social media advertising. Additionally, forming partnerships with interior designers, large corporations, company chains, and real estate brokerages can facilitate further growth.
Asking Price: $4,650,000
Gross Income: $5,768,381
Cash Flow: $1,034,864
Year Established: 2018
Employees: 7
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