Unique Online Retail Business that does Embroidery and Engraving
About the business: This unique online business opportunity was established in 2010 and is a 100% online retail business that also performs the embroidery, engraving, and printing of personalized products, directly from their home-based business! The business currently receives 100% of their revenue from 4 different Esty.com stores strategically diversified across the ever-popular baby & toddler, bridal & wedding, and home goods vertical markets. Although this home-based business is in Colorado it can be relocated to anywhere.
Whether your interest is drawn to this opportunity because of it being an online/Internet business opportunity – or – because it is a business in the embroidery/engraving/printing industry, you will need no prior experience in either one of these areas. They can both be taught to you! The sellers had no prior experience in either of these areas when they started the business 10 years ago. They are eager to train a new owner and look forward to seeing their creation continue to flourish.
The sale of the business includes approximately $80,000 of Furniture, Fixtures, & Equipment and includes 5 embroidery machines, laser engraving machine, heat press, direct to garment printer). While the business is home-based, it does require approximately 800 square feet of space to operate the business.
The business has over 600 different products across their suite of Etsy stores. Bridesmaids gifts comprise 60% of the total revenue. The average order value across the board is $80.00, and there are about 15 to 20 orders/shipments that go out per day. Sales are steady year-round which is a nice feature as many retail businesses are highly dependent upon the holiday season. About 15-20% of customers are repeat customers and there is one vendor that comprises more than 15% of sales. There are no customers that comprise a large percentage of sales, demonstrating a large and diverse customer base.
Since the business performs all production in-house, they offer a quick turnaround and more control over their service, especially when compared to other online retail businesses that outsource their production to a dependent partner, and often located overseas, and requires importing of goods.
There are 4 Etsy websites included in the sale of the business as well as a direct website built on shopify platform.
Husband and Wife seller team average together about 40 to 50 hours per week of operation in the business. The primary tasks of operation include site management, shipping and inventory management. Simply put the best way to describe the business is that it is a “buy the product and personalize it” type of business. There are 6 part-time employees that work remotely, that are involved in customer service and personalization of the products. There are about 40-60 customer service contacts that occur per day. These duties could be outsourced to a Virtual Assistant if desired.
This business is a good fit for wide variety of prospective buyers. Generally speaking, the business appeals to a person or couple team that would like to operate an online business in these evergreen vertical markets. Because Etsy.com is an all-in-one solution, all that is needed is basic computer skills to do what is currently being done. However, depending on the skillsets and expertise a prospective buyer may bring the table, specifically in the areas of graphics, online marketing, embroidery/printing area, etc., this business opportunity may appeal to many types of buyers that would like to put their own spin on the business.
Growth and Expansion: This is an exciting topic to talk about. From a big-picture point of view, online retailers continue to take market share from brick and mortar retailers. When speaking specifically to growth and expansion of the business, the owners are not doing any online marketing or promotion outside Etsy.com and little use of Pinterest.com. The owner believes that implementation of SEO, Google marketing, social media marketing, and use of a blog would result in an immediate increase in growth. Also, because the business owns embroidery equipment and produces the products in-house, a simple step like hiring a part-time sales rep to procure local embroidery jobs would result in an additional revenue stream. Perhaps the most exciting growth opportunity is the recently built shopify site that is hosted at the direct domain. The owners have invested significant resources in the past year to develop the direct domain website. There is some additional work to do in order to complete the site to full functionality, but expanding outside Etsy and selling direct from the domain is one of the best ways to increase the business.
Competition: There are many online retailers in the market space, however most of the online retailers are not performing the production, and shipping and are dependent upon overseas manufacturers, importing goods, and off-site shipping. It should be noted that while some online retailers can outsource their production, when it comes to “personalization” of products, it becomes a much larger barrier to entry to attempt to outsource overseas. Additionally, there are many brick and mortar competitors in the market space, however market share is currently being taken by online retailers, and the trend appears that it will continue well into the future.
Financing/Deal Structure: Sellers are seeking a $135,000 down payment for the furniture/fixtures/equipment and goodwill of the business. Furniture/Fixtures/Equipment has a used replacement cost of approximately $80,000 of furniture/fixtures/equipment. Inventory fluctuates, especially with the holiday season. Seller may possess as little as $40,000, and as much as $70,000 in inventory depending on the time of year. For advertisement purposes, Seller has listed that there is $40,000 of inventory as an estimate, but please note that actual amount may be lower or higher, however the listing price is firm. Please note that Seller is not interested in working with an SBA Loan due to length of time SBA financing requires.
Training and Transition: Complete training of 2 weeks included in the sale of the business. Sellers are available for phone and email support for a mutually agreed upon period of time after the training as well. In addition, owner can provide a consulting agreement for design work if the new owner desires. Sellers had no prior experience in printing/embroidery before starting the business.
Reason for Selling: Sellers are interested in retiring and focusing on their health. Sellers are willing to sign a non-compete agreement.