Scaling a Home Goods E-commerce Brand: Orthopedic Pillows, Bathmats, Towels, Pet Beds & More Primarily Through Direct to Consumer Sales on Shopify & Other Platforms
This direct-to-consumer eCommerce brand offers an innovative range of home goods including orthopedic pillows, bathmats, towels, pet beds, and more. With most sales generated from its Shopify website, the company is also selling on Amazon, Walmart, and eBay. The brand stands out by offering high-quality products that solve common problems and provide added benefits beyond standard offerings. With sales exceeding $30 million, the company’s target demographic includes middle to upper-middle-class female consumers between 35 and 65 years of age, but sales also come from male customers. The brand has a strong marketing and operations strategy and many opportunities for growth and expansion.
OPERATIONS
The company’s operations include creative, digital advertising, and media operations; marketplace marketing and operations; supply chain and logistics; customer service; and finance, accounting, and analytics. Vertical integration, operational excellence, and platform flexibility are at the core of the brand’s success. The company leverages Fulfillment by Amazon, Fulfillment by Walmart, and a third-party logistics center in Mexico to service customers. Primary transportation is handled via freight forwarding partners.
The company’s logistics operations are managed by one US team member supported remotely by two offshore logistics specialists. Fulfillment by Amazon, Fulfillment by Walmart, and a third-party logistics center in Mexico are used to service customers. Primary transportation is managed via freight forwarding partners.
MARKETING AND KEY METRICS
The brand’s marketing strategy includes direct response digital marketing, targeting core customer personas via channels like Facebook, Google, and YouTube, and supported by email marketing, brand social, and third-party marketplaces. The company currently has over 20,000 Instagram followers and 29,000 Facebook followers. Expanding to additional marketing channels such as Pinterest, TikTok, TV and OTT, podcasts, and affiliate marketing is planned for 2022 and beyond.
The brand’s products are available on multiple sales channels, with most sales generated from its DTC Shopify website. Amazon, Walmart, and eBay also sell the company’s products, with Fulfillment by Amazon, Fulfillment by Walmart, and a third-party logistics center used to service customers.
The company has sales exceeding $30 million on its Shopify website, with average order values ranging from $48 to $186, and 5-star reviews for the 18 SKUs it offers. Sales surge 30% during the holiday season, and the company experiences a repeat order rate of 22%. The target demographic is middle to upper-middle-class consumers, largely women between the ages of 35 and 65, with plenty of disposable income, with sales also coming from men between the ages of 55-64.
Middle to upper-middle-class consumers, largely women between the ages of 35 and 65, with plenty of disposable income, with sales also coming from men between the ages of 55-64.
BUSINESS MODEL & RESOURCES NEEDED
The company employs 11 individuals across its various operations.
THE INDUSTRY
The global home goods market is a hugely successful industry that generates significant revenue with $616 billion in 2021, predicted to rise to $838 billion by 2027. Online sales for larger items like furniture and home goods have grown in recent years, with sales of smaller items like pillows and bathroom items also increasing. The company focuses on innovating common household SKUs like pillows and bathmats into unique products with added benefits.
OPPORTUNITIES TO SCALE
The brand has many opportunities for growth, including expanding sales channels like Walmart.com, Wayfair.com, Bed Bath & Beyond, Target, Costco, and possible in-store relationships. With 99% of sales in the US market, expansion into foreign countries using the company’s extensive collection of assets, including image and video assets, is possible. Expanding marketing channels to include Pinterest, TikTok, Influencer Marketing, TV and OTT, Podcasts, and Affiliate Marketing is planned for 2022 and beyond. Product expansion is also possible, with six new products planned for release in 2022.
Asking Price: $28,000,000
Gross Income: $35,827,929
Cash Flow: $5,167,229
Year Established: 2019
Employees: 11
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