S-2764-1 SJE HIGH GROWTH E-COMMERCE DROP SHIP COMPANY Acquisition Opportunity – MidWest

 

High Growth E-Commerce

Drop Ship Company

Acquisition Opportunity – MidWest

Originally nurtured by its entrepreneurial owner since 2010 (who has not worked in the daily operations for the last two years), this midwestern LLC has achieved remarkable growth due to its merchandising, vendor organization, IT systems and its offshore contractor. At its overseas location, the contractor’s 4 employee teams of sales, customer service, buyers and IT have worked together without inventory, drop shipping 100% of everything sold! With 69% of sales through Amazon, 16% via Walmart, 9% using their own website and 6% through other marketplaces they have achieved remarkable success.

 

The contractor’s 27 total employees are very motivated to stay and grow the new company with the new owner.   Using 450 vendors providing over 300,000 SKUs, the top 9 vendors provide 145,000 of those SKUs, generate more than $1 million yearly and account for 59% of sales.

 

The product mix consists of office seating which is 25% of sales, office tables and desks account for 25% of revenues, office space and supply items representing 23%, bedroom furnishings are 12% while outdoor, décor and lighting products constitute the remaining 15%. None of the Company’s vendors sell directly to Amazon nor to other end users.

 

Operational strengths include:

·         Average order value increased from 2017 to 2019 by over 34% or $183 per sale,

·         Amazon reviews total over 57,500 with a 98% positive rate,

·         From 2015 to 2019 the Company achieved a 36% merchandise margin improvement rate,

·         Annual growth rate has been 25%+ while limiting its advertising expense ratio to 1% of sales.

Growth areas are:

·         Expanding product categories,

·         Securing less expensive “large item” carriers for deliveries,

·         Directly importing from China,

·         Bulk purchasing of smaller, high volume items,

·         Expanding European markets.

 

Financial Summary
	2020 Est by Seller	2019	2018
Revenue	$60M	$42M	$44M
Adjusted EBITDA	$4.0M	$2.1M	$1.9M

 

Other Highlights
Financials	Management Team in Place	Years in Business	SIC / NAICS
Compiled	Yes	10	4215 & 47910

 

 

 

 

 

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Direct inquiries to:

 Gottesman Company     Refer to:  S-2764-1 SJE 

Tel: 718-618-5346      UK Office: +44 (0) 7906786505

   E-mail: dmj@gottesman-company.com