Listing ID: 66566
Business Overview
Price
Priced to sell. Although the business continues to see significant growth, the listing price has been aggressively reduced as the owners are shifting their focus to an outside investment opportunity.
Growth
All signs point to continued growth for this business. Sales were up 180% in 2021 over 2020 and up are 79% in Jan 2022 over Jan 2021! Acquiring this business offers a tremendous opportunity to springboard off its impressive performance and continue to scale to its huge potential.
Overview
For sale is a long-established ecommerce retailer specializing in selling high quality furniture and home goods. As a 100% dropship model, the business is free of the capital requirements associated with stocked inventory. To streamline operations, the company has created a number of proprietary automation processes for order fulfillment, customer service and lead management within the Shopify Plus platform in combination with Google Workspaces. Custom code has also been developed to gather data from the vendors’ websites which is then adapted and allows products to be uploaded to the company web store quicker and more accurately than competitors.
Originally launched as a supplement in 2015 to eight other niche focused websites, the sites were all rolled into one in late 2019 to operate as the main business from that point forward and at the same time, migrated to the Shopify Plus platform. This strategic move coupled with advantageous policy changes by Google regarding organic listings in Google Shopping, in addition to the boost to ecommerce overall during the pandemic and a growing online furniture industry, have all attributed to the business’ success.
Key Benefits Include:
• YoY Growth – Sales are up 180% in 2021 over 2020
• Over 10 years of established vendor and shipping carrier relationships
• Key vendors are not opening new accounts
• Negotiated shipping rates with vendors and carriers due to volume
• Low Overhead – no inventory, no warehouses
• Streamlined operations for processing orders, answering sales leads, and mitigating claims
• Specialized team of overseas virtual assistants specifically experienced in e-commerce for furniture and home goods
• Business model provides for lots of liquid capital
• Scalable IP for handling a higher capacity of data, vendors, orders and sales leads
• High priority Shopify Plus member with dedicated support
• Listed in HGTV magazine multiple times for a trusted place to buy furniture with over 21,000 reviews on Shopper Approved, TrustPilot, and Google Merchant
Financial
- Asking Price: $6,750,000
- Cash Flow: $1,813,719
- Gross Revenue: $9,545,889
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2011
Detailed Information
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
Home Based
Yes
Pursue Other Interests
Competitive advantages include: • Relationships with hard to obtain vendors that do not want to work with big box stores • Proprietary marketing/sales strategies with IP • Ability to backorder items which many competitors do not
Building on its established foundation and tremendous performance, this business is perfectly positioned for a new owner to take the site to the next level of growth. Some ideas for future growth include: • Social media marketing • Sell on 3rd Party Marketplace sites such as Houzz, Amazon and eBay • Google Keyword advertising • Build on the brand by importing furniture from overseas - existing factory contacts have been formed from but require minimum order quantities • Inventory items from Vendors – many upper echelon vendors will only work with retailers that hold some inventory • White label products to create branded line under company name – current vendors will white label products • Attend trade shows to bolster current vendor relationships and acquire new ones • Reach out to adjacent industries (kitchenware, table settings)
This Business Is Home Based
Additional Info
The company was started in 2011, making the business 11 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals decide to sell businesses. Nonetheless, the real reason and the one they tell you might be 2 totally different things. For instance, they might claim "I have too many other responsibilities" or "I am retiring". For many sellers, these factors are valid. But also, for some, these may simply be excuses to try to hide the reality of transforming demographics, increased competition, current decrease in earnings, or an array of various other factors. This is why it is really essential that you not count totally on a vendor's word, however instead, make use of the vendor's response together with your overall due diligence. This will paint a more sensible image of the business's existing scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Many businesses borrow money in order to cover points like inventory, payroll, accounts payable, etc. Bear in mind that sometimes this can indicate that profit margins are too small. Lots of businesses come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future commitments to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that should be met or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area bring in brand-new consumers? Many times, businesses have repeat customers, which form the core of their daily profits. Certain aspects such as new competition growing up around the area, road building, and personnel turnover can affect repeat consumers as well as adversely influence future profits. One crucial thing to think about is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more individuals that see the business often, the better the chance to build a returning client base. A final thought is the general area demographics. Is the business placed in a largely inhabited city, or is it located on the outskirts of town? Exactly how might the local median home earnings impact future income potential?
