An OEM door handle company, which operates virtually, is considering a sale due to the owner reaching the limits of their capabilities. The business is a luxury brand in the home and building industry, with a specialized relationship with its factory, allowing for significant markup margins. The owner reports a historical balance of sales between an Amazon store and a custom-coded website that integrates with Amazon's fulfillment service. Recently, Amazon sales have increased to 62%. The business uses a third-party logistics partner for warehousing, with products manufactured in China.
The owner acknowledges potential growth opportunities by expanding SEO, social media marketing, and online advertising strategies, which have been neglected. There's also potential for new product lines and international market expansion. Supply chain disruptions in the past have impacted inventory levels and sales but have been addressed, leading to a recent sales increase.
Financials show a slight decline in sales and profits between 2019 and 2020, attributed to supply chain constraints. However, an increase in inventory availability is expected to drive future sales growth. The company's sales strategies focus on maintaining current channels while exploring price adjustments.
The sale includes operational assets such as the website, team, and related digital files but excludes the registered LLC and bank accounts, which the owner will retain for future projects. The transition is anticipated at the end of an Amazon payment cycle to ensure a smooth handover.
Flippa’s platform is free for buyers. Here are our tips for first-time buyers:
Before making an offer
1. Look for verified sellers. Sellers should verify their email, phone, and government ID. When a seller has completed all verifications, we identify them with a checkmark like this:
2. Review financials. Financials are seller-provided inputs. Always ask for verified financials. Ask for a tax return or request access to their dashboard. if it’s an ecommerce store get a transaction report.
3. Review traffic. Sellers can grant you access to Google Analytics. Ask for read-only access to verify site traffic.
4. Schedule a call. Communication is key. The best way to find out more is to speak directly with the seller. For your protection, keep all communication within Flippa.
5. Make the offer on Flippa. We’re here to help. Flippa does not charge buyers and by making an offer on Flippa you’ll get access to our post-sales support team.
1. Agreements & Contracts.
Connect with a US-based lawyer or purchase asset-specific template legal documents via Flippa Legal.
2. Conduct Due Diligence.
You can conduct this yourself or use our trusted network of industry-leading due diligence partners. They can provide in-depth analysis, identify hidden risks, and independently assess the value of the business. Learn More