Rare eCommerce Supplier with Massive Online Distribution
Imports own brands, sells to major retailers - 3rd party fulfillment
New and growing online dropship supplier imports its own brands direct and dropships to all of the largest retailers online. Its products are found on Amazon (sold by Amazon directly), Walmart, Sears, Hayneedle, Wayfair, and 70+ others. All fulfillment is done by a 3rd party, so no warehouse & fulfillment headaches and the business is 100% relocatable. Owner started the business after selling his retail sites and realizing that online retail is extremely competitive, low volume, and low margin. So, he started a best-in-class online supplier to quench the thirst for products from the rapidly growing online retail community. Do more volume at higher margins without the headaches of managing a retail site, optimizing for conversions, SEO/SEM, e-mail campaigns, and consumer customer service. These are all precisely the reasons the founder started the company, along with being frustrated by all of his suppliers.
The company has built a powerful, automated, and scalable platform to import and distribute its own brands online via the largest online retailers. By controlling its own brands online it ensures total control over channels, pricing, and marketing material while also building brand equity. Its first brand, Great Paw, sells pet products and has 63 SKUs. The products sell extremely well and average product gross margins are 50%, but total financial gross margins are closer to 40% due to pass through shipping income/cost.
As the company just started selling in 2011, the founder was recruited to run a much larger, venture capital backed digital media company and has been an absentee owner since then. During that process, the company was automated and streamlined and now completely automated with only one part-time employee that spends about an hour a day processing orders. All fulfillment and shipping is handled by a 3rd party fulfillment center based in Michigan. The company has continued to expand despite any concerted efforts. With a little time and attention this could really become a rocket ship. The founder is expecting a 3rd kid in March and his day job as CEO of a larger company is demanding more and more time, so he is looking to place the business in capable hands. The sale includes:
The Great Paw brand, professional photos, trademarks, custom instructions, supplier relationships & contracts, and everything else associated with the Great Paw brand
Marketplace seller accounts, which include good seller ratings/reviews
3rd party software license w/ fulfillment center integration
Aggressively negotiated fulfillment contract & relationship
Rock solid and professional supplier contracts
Corporate website and automatic retailer sign-up page
Dropship supplier listings across the Internet
Comprehensive online product catalog & all product marketing material
Comprehensive product data feed and database for data organization and use
Detailed pricing, costing, and financial data on all products
Retail distribution into 70+ online retailers, including most of the major broad product line retailers such as Amazon, Walmart, Sears, Hayneedle, and Wayfair, all of which can be sold non-pet products/brands as well