SBA-Pre-Qualified B2B eCommerce Brand in the High End Commercial Hardware Products Vertical – 20% DTC Sales – 32% CAGR – 36% Net Profit Margin

ValleyBiggs® presents an SBA Pre-Qualified eCommerce Brand that primarily offers its products via its Amazon FBA storefront. They have been in business for 5 years and specialize in the sale of High-End Commercial Hardware Products, such as commercial door locks, closers and accessories. Their unwavering commitment to quality and exceptional customer service has been a key element of their business model and has led them to develop into a leader in their industry.

They source their products from reputable manufacturers in the industry, which are private labeled for their trademarked brand. Their listings are highly rated on Amazon, where they have earned an Average Order Value of $210 and a Repeat Order Rate of 20%. 80% of their sales are B2B, and their use of Amazon FBA means that Amazon is responsible for all orders and customer service responsibilities, streamlining the sales process.

The success of the brand is written in their statistics. They have Gross Profit Margins of 86%, Net Profit Margins of 36%, and an SDE CAGR of 32%. The business is on the rise, and, combined with their SBA approval status, means that the buyer will more easily be able to achieve a swift return on investment (ROI) post-purchase.

The current ownership has a light workload of approximately 10 hours every week, with their responsibilities being significantly reduced thanks to Amazon handling their shipments and 99% of all customer interactions. The owner’s key responsibilities consist of ordering inventory, sending products to Amazon warehouses, handling the Amazon account and customers, and addressing returns. Their CPC and DSP advertising is handled by Quartile, and they have recently hired My Amazon Guy to redo all their listings, images, and keyword SEO for better organic traffic.

The company sends their products to Amazon warehouses a couple of times monthly. Their inventory is maintained in their warehouse in the interim. They aim to keep roughly 2 months of inventory at Amazon warehouses at any given time, and roughly 20 to 24 months of inventory at their warehouse in order to reduce FBA storage fees. The seller estimates that a warehouse of about 3,000 square feet would be sufficient for this business’s needs.

The modest workload that the buyer will inherit means that they will have the flexibility to pursue the brand’s various scale opportunities post-purchase. A straightforward means of improving their sales would be to simply expand upon their existing product roster. They could add new color choices, lever choices, and designs for their products, which the company is already planning to work towards by launching a new black finish for their door locks in January.

The brand could benefit from expanding into other product types that would be desirable for their consumer base. These additional product types would include but aren’t limited to, commercial door hinges, panic devices, and electrified products for commercial door hardware, which would all serve to reinforce the security of a customer’s property or residence.

The company could also set up distributors that sell commercial doors, frames, and hardware, and expand on their other online marketplaces. They could direct traffic to these storefronts, as well as to their primary Amazon account, with tactics such as Google Ads, or additional social media activity and posts. Their search engine rankings could be improved by writing hardware blogs and tips and tricks articles on their website, which they could then promote.

Another method the company could use to drive traffic would be to develop product inserts such as warranty signups. This would also let them create a database of customers that they could re-market to every month, increasing their overall Repeat Customer Rate.

This acquisition has a fantastic door of opportunity that shouldn’t be left shut. Consumers appreciate knowing that their belongings are safe behind a highquality lock and closer, and the excellent customer service that this brand provides only sweetens the deal. Though the seller suggests having basic knowledge of door locks and door closers to run this brand, this can easily be learned, making for a great acquisition for the ambitious entrepreneur.