Internet Retailer Seeking Strategic Partner for Rapid Growth
Seeking to Grow to $20 Million Revenue in 36 Months
Los Angeles, CA
Seeking Strategic 50% Partner with proven marketing experience to grow an ecommerce retailer 14 times to $20 Million in 36 months. Partner need not be local to the warehouse, can be in another city or state. This opportunity is for a successful, experienced ecommerce marketer to join forces with a successful 40+ year clothing retailer with a 10 year operating ecommerce website and 15,000 square feet warehouse / shipping infrastructure generating $1.4 Million annual revenues in 2014 with about break-even cash flow.
The ecommerce business is impressive because it offers over 1,400 SKUs and 90+ pages of recognized brand, first quality, in-season clothing at an average discount of 70% from MSRP. Yet, consistently maintains a 50% Gross Profit Margin. Because of the strong value proposition, the website is popular, it boasts a 45% repeat customer rate, about 50% of the visitors Google the website name to access it.
In 2004, the ecommerce business started as an offshoot of the owners, 10 retail store chain. Because of 1,400+ SKUs, it was easy to get high organic search ranking and internet sales shot up to $4 Million annually with no SEO, little paid advertising or paid search. More recently as internet competition became more sophisticated, with no SEO effort and very little paid search, traffic and sales declined as the search engine organic rankings fell. The seller believes the warehouse / shipping infrastructure capacity can support approximately $7 Million in annual revenues.
At present the never Optimized for Conversion Rate website has a 50,000 Average Visitors per Month, 30,000 Average Unique Visitors per Month, 2.4% Conversion Rate, $60 Average Transaction Size, $120 - $200 Lifetime Customer Sales Value (estimate), 214,000 email list, no SEO, minimal Pay Per Click, no Mobile site. The business does not accept customer returns unless the business made a mistake such as wrong item sent, etc. Shipping Charge less Costs are a Net Breakeven or Small Profit.
The seller is offering a 50% interest in an operating turnkey ecommerce business with a proven concept, strong Gross Profit margins and capable operations…everything except the ecommerce marketing expertise which the buyer will add. Showing how serious the seller is about rapid growth, about 80% of the $1,250,000 ask price will be deposited into the company account for improving the website, advertising and growth working capital. The business will be free and clear of debt, liens, claims and judgments at time of sale.