Revolutionizing Home Automation with Patented Smart Technology
This rising eCommerce business fills a niche in the Smart Home Technology Vertical, offering wi-fi connected, APP-controlled lighting products such as dimmer plugs and switches, color bulbs, and ceiling fan control. They have 14 patents that create a CPG moat and offer an impressive 30 unique SKUs. They’ve found massive success on Amazon and boast 300,000+ users of their mobile app. The global market for smart homes and related technology is projected to reach $313.95 billion USD by 2026 at a CAGR of 25.3%. There are opportunities for expansion into international channels and secondary online markets such as Walmart and Target, as well as releasing new products.
OPERATIONS
All sales are currently performed through their Amazon storefronts. They also utilize Fulfillment by Amazon for deliveries and PPC advertisements across the site. They could expand into other secondary online markets, launch wholesale and B2B sales with major retailers, improve their advertising, use social media platforms, and release new products.
Currently, Fulfillment by Amazon is used for their deliveries. There are opportunities for expansion into international channels and secondary online markets such as Walmart and Target. There are also opportunities for launching wholesale and B2B sales with major retailers.
MARKETING AND KEY METRICS
The company utilizes PPC advertisements on Amazon. They could invest in ads on other platforms such as Google and Facebook, utilize the contacts among their app users, and use social media platforms such as Instagram, Pinterest, and Facebook to drive organic traffic.
Currently, all sales are performed through their Amazon storefronts.
The company has 300,000+ users of their mobile app and a 28.4% Repeat Customer Rate. They have a rating of the Amazon #1 Best Seller in the Smart Dimmer category. The global market for smart homes and related technology is projected to reach $313.95 billion USD by 2026 at a CAGR of 25.3%.
The company’s products are enjoyed by all age groups, but they have seen great popularity among customers in the 35 to 44 year and 45-to-54-year age range, with the two groups making up roughly 26% and 22% of the customer base. They also span across income levels, targeting customers with salaries of around $50,000 to those earning well over $250,000 USD. Gender is irrelevant to sales.
BUSINESS MODEL & RESOURCES NEEDED
The company has 13 employees, but the workload could be lightened by hiring more staff dedicated to finance, product planning, marketing, and other responsibilities.
THE INDUSTRY
The global market for smart homes and related technology is projected to reach $313.95 billion USD by 2026 at a CAGR of 25.3%. The rising interest in smart technology and conveniences creates opportunities for expansion into international channels and secondary online markets, launching wholesale and B2B sales with major retailers, and releasing new products. The company has an edge over the competition given that, due to its patents, most other companies in the smart home business operate mostly within an offline channel.
OPPORTUNITIES TO SCALE
Opportunities for expansion include utilizing international channels and secondary online markets, launching wholesale and B2B sales, improving advertising tactics, using social media platforms, releasing new products, and hiring more staff to lighten the workload.
Asking Price: $11,000,000
Gross Income: $12,414,024
Cash Flow: $2,349,058
Year Established: 2018
Employees: 13
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