A SellerForce® offering, this dynamic eCommerce business specializes in hydroponic equipment and items for cannabis growers, farmers, and hobbyists. Additionally, it sells products to non-cannabis related industries, including governmental agencies.
The management works with two of the largest hydroponic distributors in the country, allowing them access to an extensive catalog of more than 6,000 high-quality SKUs and creating a one-stop shop for all equipment needs of a hydroponic grower.
The company boasts customers from various industries, resulting in a diverse revenue stream. Furthermore, it achieves a $1,700 average order value and a 10% repeat purchase rate. Individuals or businesses who routinely purchase from the site have a lifetime value that exceeds $10,000. Despite minimal SEO performed in years, almost 20% of traffic results from organic searches.
Day-to-day operations are run by one person who endures a light workload of approximately 10 hours weekly. Primary tasks include answering calls, generating quotes, providing customer service, and processing orders. The remaining time is spent on vendor invoices and site maintenance.
The customer acquisition strategy is straightforward yet highly effective, focused almost exclusively on Google and Bing Shopping. Over the past 12 months, the return on ad spend has consistently remained around 5.0 for paid search. With such a broad SKU offering and reputable distributors in place, the company is incredibly well-positioned to grow under an owner with digital marketing expertise.
An aggressive social media campaign, Google Ads, email marketing, and SEO are all low-hanging fruit for swift expansion. Also, adding vendors, products and offering financing could facilitate increasing the average order value significantly while boosting conversion rates.
The market for hydroponic equipment in the US has experienced remarkable growth, fueled by increasing demand from those who have experienced its numerous advantages, such as higher yields, efficient space utilization, and reduced water consumption.
Traditional farmers have embraced the practice as a viable solution to enhance crop production. At the same time, the cannabis industry has witnessed a surge in hydroponic adoption due to its ability to provide precise control over plant nutrients, resulting in potent and consistent yields.
Finally, hobbyists and urban dwellers are drawn to hydroponics as a means to cultivate fresh produce at home, even in small spaces. This trend aligns with the growing interest in sustainable, locally sourced food options. As the market expands, established businesses like this are poised to benefit immensely.
Contact SellerForce today to learn more about this exciting acquisition opportunity and its vast potential.
Listing ID: SF218