Back to Listings Unique Tech Hardware Product

Asking Price : $900,000

Annual Gross Revenue : $591,719

Annual Net Profit : $278,079

Profit Multiple : x3.24

Inventory Value: -

R-Index : 118

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From the Broker

Executive Summary

Launched in 2016, this highly-profitable technology ecommerce business has carved out a unique niche in the market. The business sells a singular piece of technology that is designed to test the surge protection of electronics and has the ability to completely destroy a computer in a manner of seconds.  As a result of its qualities and capabilities, the product has been featured in Fortune, CNN, The Telegraph, Mashable, ZDNet, Engadget, PC Mag, and numerous other publications.

As the owners have worked diligently to find quality suppliers and streamline operations, they spend less than 15 hours per week running the business. This hard work has resulted in a high-margin business (47% net profit margin and 50% gross profit margin) with an excellent foundation. The owners consider themselves startup guys and have taken the business as far as they can.

The sale includes all current inventory, social media accounts, IP, product designs, the exclusive product manufacturing license, and all manufacturer and supplier relationships. If you are looking for a profitable ecommerce business with significant growth potential and turn-key operations, this is the business for you.

Business Model

The business derives 100% of its revenue from product sales, and the customer base is divided between individuals (90%), government (5%), and businesses (5%). The products are primarily sold via the business’ website, and most customers purchase the product as a novelty item. Virtually no paid advertising has been used to drive traffic. Over the trailing twelve months, its gross revenue was approximately $572,000.00 and the net profit was approximately $278,000.00.

The business carries inventory and stores the inventory at its fulfillment center’s warehouse. The in-house manufacturer ships the products directly the fulfillment center and the fulfillment center handles all customer orders. The same manufacturer has been used since its inception. All fulfillment and manufacturer service and pricing is backed by contract and will be transferred to the new owner.

The owners spend 15 hours a week operating the business. This time is primarily spent managing operations, developing business, liaising with the supplier and fulfillment center, and handling high-level customer inquiries.

Growth Opportunities

There are several potentially lucrative growth strategies a new owner could pursue. The greatest opportunity for growth is through advertising. The new owner could use paid advertising to increase brand awareness and drive traffic to the website. The business has spent less than $400 total on adverting, so even small Google AdWords or Social Media (Facebook, Instagram, & YouTube) advertising campaigns could be effective.

Additionally, the new owner could send email marketing campaigns to the current mailing list to drive proven buyers to the website.  Because the products were recently listed on Amazon, advertising on the marketplace via sponsored products could lead to higher product sales and revenue as well.

A final opportunity for growth would be to expand the product selection to make the product compatible with more devices. A USB-C version of the product would be particularly lucrative as the specification becomes more widespread in computers and other devices.

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Listed By

Sale Pending: No

First Seen: Mon, Sep 11th 2017

Last Updated: Mon, May 14th 2018

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