B2B and B2C Dropship Pet Products E-commerce Business
Asking Price: $1,150,000
The Pet industry continues to see tremendous growth, with two out of three US households now owning at least one pet. Covid-19 drove a boom in pet adoptions and also increased usage of online shopping for pet supplies, both of which tremendously benefitted this business. With this boom in the pet industry, pet-related businesses and nonprofits are also growing: this includes veterinary clinics, groomers, pet shelters, dog trainers, etc. These organizations are also increasingly shopping online for the equipment they need.
This 100% dropship e-commerce business offers over 4,000 items, focusing on premium, high-ticket equipment and supplies for pet professionals and individual pet owners. This is a rare opportunity to own a single business that caters to both B2C and B2B segments in the Pet Industry. The business only offers brands that ship from within the US, the majority of which also manufacture their products in the US. The business is operated by one owner working approximately 5 hours a week overseeing company performance. Day to day operations are handled by a combination of 9 staff members, marketing agencies and freelancers hired as needed.
The company has demonstrated great YoY sales growth since its founding in 2014. More recently, TTM net revenue ending in July 2021 was up 53% compared to FY 2020 and 82% compared to the same period in 2019-2020. In 2021, Jan-Aug has seen net revenue up 96% and profits up 164% over the same period in 2020. The business has several unexplored opportunities to scale, including a recent integration with the largest wholesaler of pet products in the US.
- YOY Growth
- USPTO Registered Trademark
- Huge diversified supplier and product base: 100+ brands with over 4,450 products
- No brand has more than 10% sales
- 100% Dropship – with no physical inventory, the business can be run from anywhere
- Trained team and SOPs in place – Trained CS and Ops team with almost 3 years of experience operating the business
- Amazing SEO position, which continues to improve
- Ongoing resale relationships with big suppliers in the professional equipment industry
- Picked for Alibaba’s US pilot in 2020 (first 500 companies in the US to be featured on their global marketplace) – the company has not yet explored this further, which proves an opportunity for a new owner to explore international sales
- Database of 31,000 Emails – includes both past buyers and those that have signed up for mailings
- Huge AOV For Dropshipping: ~$550 in 2021, ranging from $500 to $800 in previous years
- Affiliate Program in place with over 650 affiliates
|Industry||Pet Products and Services|
|Location||USA, Florida (Walton)|
|Home Based Business||Yes|
|Seller Finanacing Available||Yes|
There are many opportunities to grow the business. Some areas include:
- Increase advertising spend (the business still has not hit diminishing return on its ad spend)
- International sales
- Conversion rate optimization
- Continue to add new brands and products (options are endless in the pet industry)
- Influencer marketing
- Segmented e-mail marketing
- Increase focus on lower-ticket items such as toys, food and accessories (thousands of these SKUs are already in the store)
- Expand to new sales channels, such as Amazon and Wal-Mart (accounts are already set up)
The business has several distinctive advantages over its larger competitors in the pet industry, including:
- Working with “bureaucracy” for institutional buyers (hospitals, city government, police departments, etc.): accepting checks in the mail, providing custom quotes, registering as a supplier with government institutions, working with RFP and PO processes, etc.
- Offering instant financing (Buy Now, Pay Later) for large orders up to $10,000
- Customer service team that functions as “project management” on large, multi-brand orders: coordinating deliveries, returns, accelerated fulfillment times, etc.
Compared to smaller dropship competitors, advantages include a significantly larger product and brand selection and much bigger brand awareness.