This unique ecommerce business has carved a niche market in the wedding industry, creating unique and rustic wedding products. Founded in 2014, this profitable multi-channel retailer offers wedding arches, chuppahs, poles, logs and branches.
The company’s business model has been instrumental in allowing for an attractive working capital structure that requires minimal fixed overhead expenses. The business only requires approximately 1,600 sq. ft. to house the inventory and cut products with room to pack and ship orders. Inventory is stored in the form of raw materials and products are only made once an order is placed. Furthermore, the seller has done an excellent job of diversifying suppliers with over 20 reliable vendors, ensuring there are no supplier concentration risks.
Since the company’s inception five years ago, it has processed over 30,000 orders and its 100% Etsy and 95% Amazon ratings underscore its prestigious reputation. The owner has placed an overall focus on providing the highest quality products paired with outstanding customer service, producing an extremely loyal customer following, as is further illustrated by the stellar seller ratings.
This ecommerce retailer has continued to maintain 77% gross profit margins and 18% net profit margins over the past few years as the products sold have minimal competition, which offers exceptional flexibility for overall price markup. Moreover, there are endless avenues for growth which the company has not embarked on due to the owner’s limited time. With a proven track record of consistent cash flow, this scalable business presents a great acquisition opportunity for a new owner looking to take over an established ecommerce business. Additionally, the company is well-positioned to capitalize on the growing demand for its products in the marketplace.
Building upon its established foundation and strong presence in a niche industry, some strategies to continue business growth include: increasing SEO efforts, adding products on Amazon, launching an AdWords campaign, and increasing the product offering.
Although there are other competitors in the wedding space, this business has established a strong presence in this specific décor sector, clearly illustrating the stability and viability of this internet business.
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