Successful Home Furnishings Ecommerce Business with 200,000 SKUs, Amazon Choice Badges, and 21,000 Monthly Website Visitors
Website Closers presents a Home Furnishings eCommerce Superstore that has been in business for over 18 years and continues to grow its cash flow steadily year over year. Known for providing impeccable customer service and quality, they have become a top online location for stylish Imported Home Furnishings. Over the years, this brand has become a popular destination for an increasingly wide variety of bathroom products, rugs, accent furniture, lighting, and kitchen décor. Product diversification has kept them on a shelf above the competition, and they now offer over 200,000 SKUs across multiple sales channels, including their own website, Amazon, and Walmart.
OPERATIONS
This eCommerce business is highly automated, requiring no more than 20 hours per week to operate. All products are shipped directly from the suppliers’ warehouse via an impeccable 100% Drop Ship Model. The company does not stock inventory or use Fulfillment by Amazon, which is a testament to the very strong relationships the brand has with its importers and distributors. One of the top tasks for current ownership has been researching and acquiring new SKUs in various product categories, as well as maintaining strong relationships with vendors and handling accounts payable and marketing. The company has two employees, both customer service representatives who manage 20 customer service inquiries a day by phone and up to 30 daily emails.
This eCommerce business is highly automated, requiring no more than 20 hours per week to operate. All products are shipped directly from the suppliers’ warehouse via an impeccable 100% Drop Ship Model. The company does not stock inventory or use Fulfillment by Amazon, which is a testament to the very strong relationships the brand has with its importers and distributors. One of the top tasks for current ownership has been researching and acquiring new SKUs in various product categories, as well as maintaining strong relationships with vendors and handling accounts payable and marketing.
MARKETING AND KEY METRICS
Highly effective email marketing campaigns including sales and seasonal promos drive revenues through an email database of over 2,000. Their targeted email marketing has given the brand a 10% Repeat Customer Rate, and those numbers are rising. PPC ads have also been a cornerstone of the brand’s marketing efforts. Ads are run on Google, Facebook, Instagram and Amazon, and the company’s SEO program – including the use of top-ranking keywords in products descriptions and a blog on their website – has provided a major boost to its organic traffic, giving the brand 14,000 average monthly visitors throughout 2021.
Amazon has become their top-selling platform, representing 70% of sales. The company also sells on Walmart and Houzz, each representing 20% of sales, and has its own Shopify website, representing 10% of sales. There are opportunities for growth by expanding onto new marketplaces like Wish and eBay, and using Amazon to expand sales internationally by leveraging its platforms in Canada, Europe, and Australia.
The brand has a high Average Order Value of $250, and their top-selling items now include bathroom products and rugs, which both represent 35% of gross revenue, and accent furniture, which is an additional 15%. Amazon has become their top-selling platform, and now represents 70% of sales, followed by 20% from Walmart and Houzz, and 10% on their Shopify website. Their imported products attract stellar 5-Star reviews on Amazon, and their demographics center on mid-to-high income customers, mainly between the ages of 30 and 55. There have been no significant seasonal trends for this brand, except for a rise in sales around the holidays when the company starts its major promotional campaigns.
The brand’s customer base consists mainly of mid-to-high income customers between the ages of 30 and 55. Their imported products attract strong 5-Star reviews on Amazon, indicating high customer satisfaction. They have a 10% Repeat Customer Rate, which is expected to increase as their targeted email marketing efforts continue to drive customer loyalty.
BUSINESS MODEL & RESOURCES NEEDED
The company has two employees, both customer service representatives who manage 20 customer service inquiries a day by phone and up to 30 daily emails.
THE INDUSTRY
As customers become more accustomed to shopping online, online sales of home furnishings as well as kitchen and bathroom products are unlikely to go down the drain any time soon. A booming real estate market coupled with rising eCommerce demand is set to keep this industry growing well into the future. The Global home decor market is now valued at $616.6 billion and projected to reach $838.6 billion by 2027 as home sales drive demand for new products. While specialty retail and furniture stores had been the prominent segment of this market until 2019, the eCommerce segment is expected to enjoy the highest growth over the next few years as consumers have become more comfortable going online to compare products and search for specialty items not available in their local stores. Examples of major players in the industry include Wayfair, IKEA, and Etsy.
OPPORTUNITIES TO SCALE
The company has the opportunity to design its own Proprietary and Trademarked Products to be manufactured by their suppliers, as they currently do not carry any private label products. Additionally, there are growth opportunities in expanding their SEO program, email marketing campaigns, PPC ad spend, and social media presence. They can also explore video marketing on platforms like YouTube and TikTok to further boost sales.
Asking Price: $1,550,000
Gross Income: $2,969,836
Cash Flow: $392,345
Year Established: 2003
Employees: 2
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