Recently Sold!

Asking Price: $850,000

Description

Overview

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 company has demonstrated great YoY sales growth since its founding in 2014. In addition to recently reaching a record number of monthly orders and gross sales, the company has grown this year in total net sales and profits. For Jan-Aug 2021, net revenues are up 92% and profits up 107% over the same period in 2020. The business has several unexplored opportunities to further scale, including a recent integration with the largest wholesaler of pet products in the US.

Priced to Sell

Covid saw a boom in pet adoptions and a shift to e-commerce, which accelerated the company's continued growth. Gross sales and order volume hit all-time highs in September.

However, due to the global supply chain crisis, several of the company’s suppliers are experiencing long lead times, leading to increased order cancellations. These cancellations have lowered net revenue in recent months, leading the owner to reduce the asking price.

As the supply chain resumes normal operations in 2022 (experts like JPMorgan CEO Jamie Dimon expect a full recovery next year), a new owner will benefit from the company’s ability to capture high gross sales while retaining more of these sales and related profits from reduced cancellations. This business is spring-loaded to capture pent-up delayed demand once normal buying patterns resume!

The owner has been proactive and is already beginning to see a significant reduction in returns leading to higher profits by;

• Shifting advertising away from high-return items
• More heavily advertising a list of fast-shipping substitutes instead of the high-return items
• Having customer service make direct calls to customers when they order long lead-time, expensive items (instead of sending a templated e-mail)

Key Benefits

• YOY Growth
• USPTO Registered Trademark
• Huge diversified supplier and product base: 100+ brands with over 4,450 products
• No brand has more than 10% of 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 provides 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
  

Financial Overview

Other Information

Growth

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)

Competition

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.

Interested? Let's get in touch!