Total of 18657 firms and businesses for sale today Friday 29th March 2024
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Sold. Online/e-commerce Retailer Of Clothing & Household Items

LISTING DETAILS
Firms For Sale ID:
35148
Vendor reference:
AB247
Vendor website:
     
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BUSINESS DETAILS
Location:
Primary sector:
Secondary sector:
Commercial property:
Asking price:
£400,000  
Turnover / revenue:
£1,900,000
Net profit / cashflow:
Undisclosed
Number of employees:
2
Employees / staffing:
The business model has been developed in such a way that it is a very simple business to run. There are 2 staff running the business, plus the owners. A husband and wife team run the operation with the husband doing the buying and fits this around his other job as a pharmacist. The wife works part-time and does the accounts. The EBITDA of £185,000 is calculated after allowing for a replacement salary for the wife.

OTHER DETAILS
Support and training:
Vendor will provide a comprehensive handover to ensure a seamless transition and continuity of trading; this should be relatively straight forward based on the current business model. The Vendor is prepared to work for up to a year as a consultant post-completion if required.
Business is relocatable:
Yes
Business is web-based:
No
Business is home-based:
No
PROPERTY DETAILS
 
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BUSINESS DESCRIPTION
Location: Relocatable

Asking Price: £320,000 plus SAV

Asking price includes:

Turnover for last financial year circa £1.9 Million p.a.
Gross Profits circa £285,000 p.a.
EBITDA £185,000 p.a. before a single owner’s drawings
Owner only working part-time
SAV c£130,000
Impressive feedback figures
Ultra low cost business model
Motivated sellers

Business Profile:

This well established and highly respected business/brand has been trading successfully for some 7 years and specialises in the online supply of clothing and household items to the whole of the UK. The sales are online retail with the majority sold through Amazon and to a lesser extent Ebay.

The company has achieved consistent sales over a number of years and the brand is growing year by year with more and more product ranges being added.

During the financial year 2020 the business turned over c£1.9m through sales on Amazon and Ebay. Despite 2020 being a Covid year sales in 2021 have continued at similar annualised levels. (The business is 121% up on last year to date on Amazon and 162% up on last year to date on eBay) and also mirror previous years’ sales (apart from 2019 when the owners took time out for family reasons). This consistency and volume of sales highlights the strength and market penetration the brand is enjoying. The back office technology the company has invested in is fit for purpose and easily accommodates this high volume of sales, preventing the need for high numbers of staff yet still delivering impressive levels of customer service whilst still having plenty of spare capacity.

This company/brand’s reputation is impeccable, they have a 98% positive feedback rate on Amazon.co.uk and 5Star average reviews on Ebay. They are top rated sellers on eBay.

The business has well-established supply agreements in place and sources high quality products at very competitive prices. They have excellent internal systems so they can rank new products to ensure consistent quality control throughout the range. They have excellent seller performance metrics and extensive history of proven search terms that allow them to rank new products quickly.

The business prides itself on its speed of response and proactive after-sales approach ensuring it always carries adequate stock of popular lines.

The company supplies its products worldwide and they are VAT registered across several European countries. Sales are predominantly online through various key online selling channels.

The company experiences very low return rates as a result of the quality of its merchandise.

This online business is totally portable and scalable. Its customer base, and supply chain for that matter, has grown and strengthened year on year. It has relatively low fixed costs and is simple to run. Sales are strong and the business enjoys impressive levels of profitability.

The business model has been put in place. It is ripe for a new owner to utilise the superb and highly valuable positioning this company has developed, both online and in the market. The opportunity is there to either bolt on to an existing operation or for a new owner to scale up the business to maximise the many other opportunities in the market.

The owner is a pharmacist and only works part-time on an as-needed basis.He has other non-competing interests and is keen to sell this business as quickly as possible in order to manage his time more efficiently.

Equipment:

The business has invested in technology and has excellent e-commerce websites using leading third party products that are simple to use. They provide many report and analysis tools including rank tracking, search volume, conversion rates, etc.

All technology and equipment is included within the asking price.

Customer Service:

The business provides customers with a comprehensive level of customer service and this is evident in the excellent reviews it enjoys. The impressive feedback scores on Amazon, Ebay etc. as already mentioned speak for themselves!

Key Strengths:

• Very profitable
• Impeccable reputation
• NOT owner dependant
• Highly prized and extremely valuable feedback scores/listings
• Market presence with further product development opportunities
• Broad product range
• Truly scalable business model
• All year round sales
• Truly portable with low overheads
• Positive cash flow

Growth and Expansion/Opportunities:

The business has expanded and enjoyed impressive profitability since inception, however it still has widespread opportunities for further growth and development. These opportunities include:
• Expanding product range.
• Selling in more countries.
• Selling on more marketplaces.
• Put marketing efforts into the website using PPC and Social media marketing campaigns.

• Bulk orders/Commercial sales

There is a vast range of additional complimentary product possibilities that would be superb additions to the business for increasing its online sales.

The brand and reputation has been forged. The company is ideally positioned for a new owner wishing to expand the business and take it through its next natural period of growth and increased profitability.

Integration into an existing e-commerce operation would also be straightforward.

Advertising:

The business is very much geared to online sales and marketing.

Employees:

The business model has been developed in such a way that it is a very simple business to run. There are 2 staff running the business, plus the owners. A husband and wife team run the operation with the husband doing the buying and fits this around his other job as a pharmacist. The wife works part-time and does the accounts. The EBITDA of £185,000 is calculated after allowing for a replacement salary for the wife.

Business Hours:

Websites: 24/7
Office: 9am-5pm Monday to Friday

Premises:

The business operates a small unit on an industrial estate in Newport, Wales but is truly relocatable. Its clients are nationwide so it could be based anywhere within the UK with no impact on sales.

Financial Information:

The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.

Turnover in 2020 was £1.899m with a GP of £285k;
EBITDA before a single owner’s drawings was c£185k.
Stock estimated at £130,000.

Asking Price:

The asking price of £320,000 plus an amount equal to the SAV is for all the issued capital of the company on a no-cash no-debt basis. The NAV is expected to be c£130,000 and largely made up of the stock.

Support and Training:

Vendor will provide a comprehensive handover to ensure a seamless transition and continuity of trading; this should be relatively straight forward based on the current business model. The Vendor is prepared to work for up to a year as a consultant post-completion if required.

Expansion Potential
The business has expanded and enjoyed impressive profitability since inception, however it still has widespread opportunities for further growth and development. These opportunities include:
• Expanding product range.
• Selling in more countries.
• Selling on more marketplaces.
• Put marketing efforts into the website using PPC and Social media marketing campaigns.

• Bulk orders/Commercial sales

There is a vast range of additional complimentary product possibilities that would be superb additions to the business for increasing its online sales.

The brand and reputation has been forged. The company is ideally positioned for a new owner wishing to expand the business and take it through its next natural period of growth and increased profitability.

Integration into an existing e-commerce operation would also be straightforward.