Handcrafted Proprietary Modern Furniture eCommerce Brand | US Manufacturing | Etsy, Walmart & Shopify Channels | 30% YOY Growth in TTM vs 2023
Deal Pipe® presents an eCommerce brand that has been around for over 9 years and offers exclusive products in the modern home furniture space. They specialize in handcrafted industrial and farmhouse-style pieces made from real wood, a feature that’s becoming increasingly important to today’s consumers.
They sell their products through Etsy, Walmart, and Shopify, with their Etsy storefront seeing the most sales. Their SKUs include tables, desks, and benches, and incorporate modern design with sustainable practices to create pieces that target the eco-conscious consumer.
The brand enjoys registered trademarks in the US and in China, and all their designs and color combinations are proprietary. Their products are manufactured by 2 main suppliers and have been highly well-received by their customer base.
They have an AOV of $396.40, a 4.9-star average rating on Etsy based off nearly 5,000 reviews, and roughly 22,000 sales. The company has also been seeing a strong growth trajectory and have 33% YoY sales growth.
Business Broker Takeaways
1. Strong Reputation. The brand has cultivated a strong reputation and an established algorithmic presence on Etsy. Despite having no active marketing plan outside of onsite SEO for Etsy, they have roughly 20,000 subscribers in their email database and see an average of 30,000 visitors to their website every month.
2. Light Workload. The current owner typically works 2 to 6 hours per week, with their time spent on confirming new orders, handling accounts receivable, and negotiating shipping rates. They also place new orders every month.
Outside of ownership, the brand employs a full-time warehouse manager, a full-time virtual assistant, and a part-time inventory associate. They use a 100% stock model to handle their inventory, with their products being pre-packaged by their suppliers and shipped from the brand’s 5,500 square foot warehouse.
3. Varied Demographics. The company’s products target a wide range of customers, with their core demographic consisting of young professionals and millennials in urban areas who have a high purchasing power. The brand also sees a growing number of Gen Z customers, with their products being especially popular among college students looking for environmentally friendly furniture over standard retail options.
Scale Opportunities
The brand has ample scale opportunities available for the right buyer to utilize. For instance, they could expand their product roster to include other home decor verticals such as pet/kid furniture, kitchenware, and fabrics. By offering new products, they can boost their appeal among new and old customers alike, increasing their sales and Repeat Order Rate.
They could also improve their online store’s user experience with features like personalized shopping and mobile optimization, which would strengthen customer loyalty and draw in more customers. Additionally, given that the brand lacks a proper marketing campaign, they could quickly increase their visibility and sales through SEO and online marketing campaigns.
A few advertising tactics they could explore are email marketing, affiliate marketing, and partnerships with influencers in the home decor and interior designer space. They could also post advertisements in interior designer publications and on relevant websites.
Influencer partnerships would also help the brand build a presence on various social media platforms. A strong social media presence would strengthen their organic traffic, and, when paired with a sales outlet on Facebook Marketplace and/or TikTok, would let them reach a new audience and generation that is more likely to make online purchases.
The brand could make their products accessible to a wider audience by collaborating with established retail chains and boutique furniture stores. Expanding into these in-person locations would increase their physical presence and help them target customers who prefer brick-and-mortar stores. They could bolster these sales by setting up pop-up stores or showrooms in strategic locations.
Finally, the brand could establish B2B channels by forming partnerships with businesses for office furniture solutions, or by offering interior design services for corporate clients. They could also market to the hospitality and real estate sectors for bulk sales opportunities, opening new, lucrative revenue streams.
Conclusion
This acquisition has carved a reputation for themselves in the sustainable home furniture niche, and wood be a great fit for an ambitious buyer. They have a thriving presence on Etsy, and the owner’s flexible schedule will allow them to spend their time and energy on scale opportunities.
The seller is eager to facilitate a smooth transition process for a buyer post-purchase, which will allow them to quickly get accustomed to their new role.
This Company is Represented by:
Deal Pipe.com
Technology, Internet & eCommerce Business Brokers
WC 3492
