7 Year DTC Commercial Lighting Retailer – 5 Active Websites – $1,000 AOV, 88% Organic Traffic, 100% DropShipping Model

Asking Price:
$240,000
Sales:
$703,905
Profit:
$63,773
Year Established:
2017
Multiplier:
3.76x

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A SellerForce® offering, this distinctive business is a full-service lighting distributor that brings wholesale prices to the general customer nationwide through five active eCommerce websites. With seven years of successful operations and sales, primarily from organic traffic, the company leverages the ability to stay lean with a zero-inventory policy.

With every transaction, management strives to create a positive customer experience, which has resulted in repeat business and cultivated trust for years to come. Pricing is incredibly competitive, and customers have responded to the excellent value.

Operations are exceptionally lean, and all items are Drop Shipped from high-quality and trusted manufacturers. Thousands of products are available from up to 50 different vendors, although the team maintains a hyper-focus on its top five. The company provides a fast and effective sales process, excellent customer service, and moderately priced items ready to ship. Tritium exit signs are the hero product and account for half of revenue, while other exit, emergency, and commercial lighting and accessories make up the remainder.

The digital marketing strategy is simple yet effective. SEO and PPC advertising are used exclusively. Notably, the existing infrastructure requires no expenditure on SEO, while the nominal PPC spend of $1,000 monthly—focused on Self Luminous Exit Signs—attains a 4x ROAS.

Typical customers are small business owners looking to replace exit signs and emergency lights and contractors looking to receive exit signs expediently for a new build. Many building engineers frequently make purchases to replace ballasts, emergency lights, and exit signs as necessary. The characteristic demographic is males between 40 and 65 based in the US and working in some building maintenance or engineering role.

Management has systemized the business and built an excellent team to minimize the workload. From 20 to 30 hours weekly two years ago, the three owners now work only six to nine hours combined on the business. The different partners’ primary roles are as follows:

The managing partner handles sales, training, staff updates and meetings, quotes, product and pricing management, credit payments, and weekly team meetings.

Another oversees accounting and bills, cross-checking all orders, and managing payments to vendors.

A final partner is in charge of marketing, PPC Ad spending, analytics, eCommerce, and development.

Three additional staff are employed as contractors. Two of them work in web sales and as operations managers, while the other does accounting and bookkeeping. Finally, an agency is used for PPC advertising.

As consistently and satisfactorily as this business has grown, there is tremendous untapped scale potential. Hiring a product specialist to clean up old products, update pricing and upsell items across all the websites would likely show a healthy return.

Having a dedicated salesperson to handle inbound organic sales and draft quotes would help grow revenue significantly and improve conversion rates. Furthermore, there is a considerable opportunity to improve products and pricing and retarget customers who have ordered in the past.

Implementing a segmented email marketing campaign with automated flows is low-hanging fruit. The company has a database of more than 50,000 gathering dust. Activating this channel would immediately boost revenue and heighten repeat customer rates with minimal investment.

This is an attractive, low-cost, and easy-to-run business for a buyer with the unique opportunity to step into the proprietor’s seat and reap the rewards of the hard work put in by current ownership. A competently trained staff is ready to transition with detailed SOPs in place.

Contact SellerForce today to learn more about this listing and its bright future.

Listing ID: SF123

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