Premium Home Office Furnishings Retailer: 20% YOY Sales Growth & 100% Repeat Order Rate
Website Closers presents a top-shelf acquisition in the home furnishings industry with an impressive track record and ample room to scale. Close relationships with luxury goods providers such as Tempur-Pedic and Ashley Furniture provide customers with over 16,500 top-of-the-line SKUs at excellent prices, pulling the rug out from underneath the competition at every turn. Operating from a powerful drop ship model allows this brand to enjoy returns on every sale with a fraction of the working capital required of similar businesses in the field. Freedom from warehouse and inventory overhead costs allows for additional investments into pursuing marketing and SEO initiatives.
OPERATIONS
Relying mostly on organic growth, abandoned cart retargeting, and very little Google advertising, this company could be further bolstered by incorporating more vigorous social media outreach to capitalize on their gleaming reputation. Investing in paid placements offers a chest of opportunities in this highly visual industry with Pinterest, Facebook, and Instagram at the forefront of contenders.
Strategically developed to streamline operations, an established workflow was built to minimize effort and maximize profit. Requiring only 10 hours of work each week from current ownership, daily overall oversight includes vendor communications, bill payments, and high-level customer concerns. Seven capable and experienced full-time employees including a logistics manager, claims manager, and multiple customer services representatives ensure that operations run smoothly. Scaling up staff as inventory expands would allow for stress-free growth and ensure continued impeccable service.
MARKETING AND KEY METRICS
The variety in products available, ranging across every room of the home and spilling out into exteriors, offers a king-sized selection of possibilities when it comes to collaboration. The scale of this company alone makes it a great potential partner for interior designers, real estate agencies, resellers, and even decorators to provide additional steady sales.
Relying mostly on organic growth, abandoned cart retargeting, and very little Google advertising, this company could experience significant sales channel growth by incorporating more vigorous social media outreach and investing in paid placements. Platforms like Pinterest, Facebook, and Instagram offer great potential in this highly visual industry.
Boasting a strong YOY growth rate, in addition to the SKUs currently listed on the site, 250,000 additional inventory pieces are on deck to expand their already robust selection. Offering a wide array of luxury furniture pieces for every room of the home, no corner of the market is left unturned, including furniture for the Dining Room, Living Room, Bedroom, Mattresses, Office, Home Accents, Outdoor and Commercial. With a nearly 20% repeat order rate, fierce customer loyalty and testimony amplification should be considered critical assets to focus on.
The customer base of this eCommerce retailer consists of homeowners and businesses looking for high-quality, premium home and office furnishings. With a strong reputation for providing quality goods at competitive prices, the retailer has built a loyal customer base with a nearly 20% repeat order rate. The customer base can be further expanded by targeting interior designers, real estate agencies, resellers, and decorators who can provide a steady stream of sales.
BUSINESS MODEL & RESOURCES NEEDED
Seven capable and experienced full-time employees including a logistics manager, claims manager, and multiple customer services representatives ensure that operations run smoothly. Scaling up staff as inventory expands would allow for stress-free growth and ensure continued impeccable service.
THE INDUSTRY
The home furnishings industry is a highly competitive sector that caters to the needs of homeowners and businesses in terms of furniture and decor for their living spaces. With a focus on premium home and office furnishings, this eCommerce retailer stands out in the industry by offering a wide range of luxury furniture pieces from top brands, including Tempur-Pedic and Ashley Furniture. Examples of other players in the industry include Wayfair, Crate & Barrel, and Pottery Barn.
OPPORTUNITIES TO SCALE
The scale opportunities for this eCommerce retailer are vast. With a strong foundation and existing relationships with luxury goods providers, there is room to expand the product selection to include more inventory pieces. Additionally, forming partnerships with interior designers, real estate agencies, resellers, and decorators can provide an avenue for steady sales growth. Collaborations with other businesses that complement the home furnishings sector, such as home staging companies, can also lead to scale opportunities.
Asking Price: $5,600,000
Gross Income: $6,912,684
Cash Flow: $1,317,609
Year Established: 2018
Employees: 9
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