Rapidly Growing Ecommerce Hybrid Retailer in Home Improvement Space

A rapidly growing eCommerce hybrid retailer in the home improvement space, offering a massive array of top-brand products related to energy efficiency. The business has diversified sales channels through website, call center, and Amazon. The majority of orders are processed through a dedicated warehouse and fulfilled via dropship vendor relationships. With 17,000+ customers, DTC sales have historically driven sales growth, but B2B presents a major scale opportunity. Nearly all transactions are paid via credit card, and the business has a negative working capital business model. The streamlined infrastructure is scalable 3-4x more volume.

OPERATIONS

The business has been operating since 2009, with nearly 10 employees managing and operating the business from end to end. Daily performance updates are provided to the ownership from management, and a professional reporting package of the financials is given on a monthly basis.

The majority of orders are processed through a dedicated 2,400 sq. ft. warehouse, ensuring rapid, quality-assured order handling with minimal overhead. The business dropships products through its many dropship vendor relationships.

MARKETING AND KEY METRICS

The business has a clear value proposition and powerful buying position with top suppliers and manufacturers in the home improvement space. Nearly every transaction is made via credit card, and payables are able to fund growth due to the business’ negative working capital business model.

The business has diversified sales channels through website, call center (phone sales), Amazon FBM, and Amazon FBA platforms. B2B sales represent a major scale opportunity, with over 30% of sales coming from existing customers. The business offers a program specific to contractor customers, including HVAC, plumbing, electrical, general contractors, weatherization specialists, etc.

17,000+ customers, over 16,000 SKUs

The business has 17,000+ customers, selling products mainly related to energy efficiency in the home improvement and building materials segments.

BUSINESS MODEL & RESOURCES NEEDED

The business has a headcount of nine employees, including a general manager, that manage and operate the business from end to end. There is also a technical inside sales team in place.

THE INDUSTRY

The business operates in the home improvement and building materials segments, all centered around energy efficiency. It offers products such as HVAC equipment/parts, building materials, foam insulation, air filters, bathroom fans, humidifiers, digital home thermostats, industrial vacuums, and water heaters. The business sells through its website, call center, Amazon FBM, and Amazon FBA.

OPPORTUNITIES TO SCALE

With AOV in the $300-$400 range, massive potential exists to enter the wholesale or account sales markets. The business has a clear value proposition and powerful buying position with top suppliers and manufacturers in the space.

Asking Price: $2,050,000
Gross Income: $8,000,000
Cash Flow: $509,600
Year Established: 2009
Employees: 9

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Amanda Stanley

Amanda has been a professional writer since 2010. She writes during the day and reads by night. She has accumulated knowledge by scouring the internet and reading informative books. Concurrently, she developed a passion for educating people through her blogs and web tutorials. She is an earnest believer that knowledge is power.

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