Internet Retailer Of Gadgets And Gifts Plus Consumer Electronic Products | | Undisclosed London | | Internet Retailer of Gadgets and Gifts plus Consumer Electronic Products Ref.AH113 Location North West London Asking Price £150,000 | | BUSINESS FOR SALE ADVERT DETAILS ADVERT NUMBER : 51283
ADVERT IMPRESSIONS : 17,288 TIME(S) | | | | BUSINESS SECTOR: | Internet / Online | | TRADE TYPE: | E-Commerce | | SALE: | Agent Sale | LEASEHOLD: | £150000 | | | | | | | | | | Add this business advert to your: | | | | | | | | | | | | | | | BUSINESS DETAILS: | Business profile:
After noticing a gap in the market, the vendor of this business established an online marketplace for gadgets in 2005, with a unique trade name ready for expansion. He bought a number of domain names all linked to the core brand identity and set about building business with strong name recognition and an excellent reputation. The business primarily sells gadgets, consumer electronics such as digital cameras, and electronic and retro toys. With over 400 products lines, the vendor has been successfully ahead of the curve many times, and had the right stock at the right time, as gadgets and gifts received a buzz in the marketplace.
After taking an ‘off the shelf’ e-commerce solution, the vendor has built a bespoke back office system, which integrates seamlessly with the main company website and trading platforms such as Amazon. The back office takes all customer information, manages stock control, and prints invoices and shipping labels for an easy to operate and slick business. From the outset, with a knowledge and passion for the sector, the vendor create websites with search engine optimisation in mind. This has now led to very high rankings, not only for general gadget and consumer electronic keywords, but also product specific. With the business website listed on the 1st page of the major search engines, and in a lot of cases top 3 listings which are higher rankings than some of the major electrical retailers in the UK. Once these search engine positions, and website is viewed, the value and potential in the business can be seen for those looking to build on the presence and expand the company.
Being completely independent, the business draws on dozens of suppliers from across the globe, with strong relationships with a handful of key suppliers mostly based in the UK. Most customers tend to be private individuals looking for gifts and gadgets, thus as with most retailers the winter season provides a major boost in trade, with the vendor calling in casual workers to assist in long-shifts trying to keep up with orders. There has been some corporate clients in the past, which the vendor believes can be greatly expanded on by a move towards the corporate gift market.
Equipment:
The business is operated from a warehouse based on a small light industrial estate in North West London. There isracking and storage through for the many lines of products. In the management office is the main server and PC’s for operation, with peripherals such as printer, label machine, fax machine and telephone system.
Customer Service:
Retail success is based on customer satisfaction, even more so in today’s internet retailing world of immediate feedback, reviews and on-line customer discussion. The vendor has always focused on selling only what is in stock for fast delivery and positive feedback. The real-time stock control integrates with the main storefront website and Amazon marketplace, so no customer can order an out of stock item and be disappointed. The focus on customer service is shown by the favourable response, and reputation.
Key Strengths:
The key strength to the business is the market presence and very high natural search engine rankings drawing potential customers to the site. This has been built on, with an easy to navigate and comprehensive website that allows for speedy transactions. The business is very easy to operate, with streamlined processes needing limited day-to-day management.
Growth and Expansion Opportunities:
Although the focus on only selling products in stock has resulted in speedy delivery and satisfied customers, the vendor believes that with a little extra cash-flow investment, many more items could be stocked to capitalise on the businesses high profile web presence. With extra buying power, margins can also be increased whilst remaining competitive. The vendor owns a number of related domain names, all with the same brand name, involving such items as DVD’s, gifts and toys. Theses extra domains assist in the search engine profiles, and provide an excellent route for further growth.
There is also the potential in the aforementioned area of corporate gifts, where gadgets, electronics and gifts can be provided with company logos. The corporate gift sector is worth billions of pounds in Europe, and is a straight forward add-on for the business. The vendor has also suggested that a move into wholesale distribution of some of the goods imported could be achieved, with a great effect on overall revenue and earnings.
One other area to consider is a structured approach to advertising, marketing and PR. Whilst the majority of customers have been received from internet advertising, the business would greatly benefit from additional promotions such as tie-ins with gadgets magazines, TV and other media outlets. This could be in the form of competitions or promotions run in co-operation with media owners. The website would also benefit from a defined social networking strategy to improve the online presence.
Premises:
The business is operated from a 1200 sq ft warehouse unit on a light industrial estate in North West London. The majority of space is devoted to storage, with a small management office, toilet and kitchenette on site. The premises are leased on flexible terms, with an annual rent of approximately £8,000 and business rates payable circa £3,200 per annum.
Business Hours:
Monday – Friday: 10:00 am – 4:00 pm, with 12 hour+ shifts during peak periods. The website is operated 24 hours per day, 7 days a week.
Security:
There is CCTV in operation across the industrial estate.
Advertising and Marketing:
The business has been built on the very high natural search engine results and excellent reputation for quality of service. There has been some spend on Google ‘Ad-words’ to support this. The business would benefit from an increase in PR as outlined above.
Financial profile:
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.
For this year end the Turnover is circa £166,000, with Gross Profits circa £62,000. Stock of around £20,000 is usually held at any given time.
Employees:
The vendor is the Managing Director of the business, responsible for all day-to-day operations and business administration. During busy periods he calls on casual workers to assist with the packaging and logistics.
Support and Training:
The vendor is agreeable to a handover period, and would consider a longer term involvement to assist in taking the company forward.
Reason for Sale:
The vendor has spent a number of years building the business to the present level. He believes the business is best placed for further expansion under new ownership, with the funding available to capitalise on the expansion potential. | | | | | | FOR SALE | | | | | REFERENCE: | AH113 / RightBiz | | | | | | Request more information about this business.. | | ENQUIRIES: | | | | CONTACT SELLER TO GET THE SELLERS DIRECT CONTACT DETAILS AVAILABLE TO MEMBERS ONLY | | | | | | | | | | | |
