7 Year eCommerce Brand in Commercial Lighting – $1,000 AOV – 400% ROAS- 14% Repeat Customer Rate

Asking Price:
$225,000
Sales:
$717,111
Multiplier:
3.04x
Earnings:
$74,010
Year Established:
2016

A SellerForce® offering, this 7-year-old, 100% DropShip eCommerce business is sure to bring a little extra light into your life. They operate as a full-service lighting distributor, supplying products at wholesale prices to the general customer. They sell nationwide through their 5 eCommerce storefronts, and have, over the course of their lifetime, expertly built their flow of organic traffic to generate consistently successful operations and sales. Not only that, but they have maintained a lean infrastructure through their zero-inventory policy, making for far simpler operations overall.

The business has continually put in the work to make sure that every transaction is a positive experience for the customer, and it shows. They have created a sense of trust between themselves and their consumer base and significantly strengthened their rate of repeat business. Their pricing is also very competitive, making them an ideal option for buyers looking for great commercial lighting at an affordable cost.

All of their SKUs are DropShipped from their network of trusted, high-quality suppliers, giving them access to thousands of products. Though they work with up to 50 vendors, they maintain a strong focus on their top 5, narrowing down their stock to the best of the best.

Their reasonable pricing, rapid sales process and shipment times, and stellar customer service have truly allowed this brand to shine like no other. Their Tritium exit signs are their hero product, accounting for half of their total revenue, with the rest of their sales being distributed across their other exit, emergency, and commercial lighting and accessories.

Their digital marketing strategy is just as simple as the rest of the business, consisting exclusively of PPC and an SEO campaign. Their PPC, which is focused on their Self Luminous Exit Signs, requires little more than $1,000 every month, while their current SEO strategy needs no spend at all to function. These combined tactics have led to a 4x ROAS.

Their consumer base is largely made up of contractors, as well as small business owners. These customers are often looking for exit signs- either to replace old ones or for entirely new builds- or emergency lighting. They also regularly enjoy the business of building engineers that need replacements for ballasts, emergency lights, and exit signs, making their products valuable to a generous number of professions. Their average customer is a US-based man between the ages of 40 and 65 that works within a business maintenance or engineering role.

The current owners have shaped their operations to be as light as possible and employed an excellent team to accomplish this. They have whittled their workload from 20 to 30 hours weekly 2 years ago to a modest 6 to 9 hours combined between the three. The different partners’ responsibilities are divided as follows:

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

The second partner handles accounting and bills, the cross-check of all orders, and manages vendor payments.

The third and final partner is responsible for marketing, PPC Ad spending, analytics, eCommerce, and development.

Alongside the partners, the company has also brought on three additional employees as contractors. Two work in web sales and as operation managers, while the last does the accounting and bookkeeping. The company also uses an agency to handle their PPC advertising.

Though the company has come far, there is still a vast wealth of scale potential at their fingertips. A fantastic investment for the buyer would be to hire a product specialist to clean up old products, update pricing and upsell items across all the websites, making the brand more streamlined.

A dedicated salesperson would also be promising, as they could significantly grow conversion rates and revenue by managing inbound organic sales and draft quotes. The brand could also work to improve their products and pricing to retarget their past customers.

The introduction of a proper automated email marketing campaign would be an easy way to grow, as the brand has over 50,000 contacts going unutilized. Making use of this channel would require little effort, while still leading to increased revenue and repeat customer rates.

This is an acquisition that’s easy to run, easy to scale, and easy to love. A buyer can enjoy the incredible groundwork that has been laid out by the current owners and use it to quickly scale to great heights. Additionally, the highly capable staff team is available to transition alongside the business and have detailed SOPs in place.

Contact SellerForce if you’d like to learn more about this gleaming gem of an online business.

 

Listing ID: SF174

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