Buying an Established E-Commerce Brand and Manufacturing Facility in the Adjustable Bed Mattress and Bedding Accessories Market
This eCommerce brand and manufacturing plant specializes in adjustable beds, mattresses, and bedding accessories. With 40 branded SKUs and a growing customer base, the company has quickly become a leader in the industry. They are now expanding by launching their own manufacturing facility, allowing them to produce a significant portion of their products in-house. This expansion aims to increase profit margins and stabilize the supply and logistics arm of the business.
OPERATIONS
The eCommerce part of the business is thriving, while the manufacturing side has purchased equipment and secured raw materials. This expansion into manufacturing will help alleviate supply constraints and increase margins. The company also plans to offer white label manufacturing services to third parties.
The company sources its products from various vendors worldwide and has a stock method and distribution center for efficient shipping. The upcoming manufacturing facility is expected to process over 35% of future orders.
MARKETING AND KEY METRICS
The company has focused on PPC ads on Facebook, Instagram, Google, and YouTube to drive traffic and generate sales. They have also employed SEO strategies, including backlinks and affiliate influencers. The brand has an email database of over 7,000 subscribers and receives an average of 72,000 monthly visitors on Amazon and 45,000 monthly visitors on their Shopify website.
The company sells on Amazon and through their Shopify website. They have earned an unrivaled standing on Amazon and receive significant web traffic. To drive further growth, they can diversify their product offerings, enhance their online presence through lifestyle content, and improve marketing tactics such as email marketing and search optimization.
The company’s average order value is $1,807, and they ship an average of 35+ products per day. They maintain a 60-day level of inventory and source products from suppliers in eight countries. They receive over 150 customer service contacts per day.
The company has a wide and fast-growing customer base with over 7,000 addresses in their email database. They attract customers through PPC ads and have a strong word-of-mouth growth due to their quality products and customer service.
BUSINESS MODEL & RESOURCES NEEDED
The company has 16 full-time employees, including positions such as director of manufacturing, warehouse manager, sales manager, and customer experience associate. The current owners focus on managing the team and forecasting.
THE INDUSTRY
The company operates in the home bedding and mattress industry, an evergreen market. They offer luxury beds and frames with customization options. The company has seen tremendous sales in the US and has the potential for international expansion. They have become a leading competitor in this niche.
OPPORTUNITIES TO SCALE
The company has numerous opportunities for scale, including expanding SKU options, enhancing the brand’s online presence, improving marketing tactics, adding third-party brands to manufacturing, and expanding internationally. The company’s success and growth rate present exciting scale opportunities.
Asking Price: $40,000,000
Gross Income: $40,803,634
Cash Flow: $5,415,717
Year Established: 2016
Employees: 20
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