While attempting to sail their 39-foot boat through the Arctic Northwest Passage, this pair of friends decided to try their hand at ecommerce. Starting individually at first (and failing), they decided to partner in 2020 and launch something together. In October of that year, they launched this drop-shipping business that focuses on large accessories for heavy-duty construction equipment.
All 14 suppliers for this business are in North America. Many of them are not open to adding new ecommerce companies, which creates a nice moat for the business. Most of them offer incredible terms including net 30. All the suppliers and terms are transferrable to a new owner.
The business has around 2,000 SKUs available on the website. Given it is a 100% drop-ship business, it is a huge benefit to have a lot of different items for sale. There are also expansion opportunities for a new owner who wants to add additional products to the catalog. Because the product is very expensive, there is a benefit to offering financing to customers. Through their financing partner, they are able to offer terms up to $250,000 to facilitate more sales and income for the business.
The business has tremendous channel diversity in terms of traffic. 45% of the traffic comes from Google Ads, while 44% comes from organic traffic. The remaining traffic comes from direct and referral traffic. The sellers run the business. To maintain sales they need about 40 total hours of work per week. For this listing, we have subtracted $100,000 in earnings (see the add-back schedule) to allow a new owner to hire two people full time at $50,000 per year. This will allow the business to maintain current sales and even have some room for growth. They field about 5-10 calls per day. Because it’s a large purchase they are only managing about 60-90 orders per month.
The sellers are both professional airline pilots. One wants to resume flying full time while the other wants to pursue full-time bond trading.
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Brad Wayland is an entrepreneur who began working in the online space in 2003. He spent over a decade in the custom printing industry where he bootstrapped a business to millions in sales and over 100 employees. While honing his SEO skills in the print industry he spent much of his time learning other aspects of the web from traditional ecommerce, to affiliate marketing, to content. Eventually his love for content businesses led him to being a serial acquirer and he ended up on the buy side 26 times. A majority of his acquisitions were part of a rollup strategy he was pursuing. In 2015 he sold his content portfolio to private equity. Brad has experienced 4 successful exits from businesses he owned and operated. Brad joined the Quiet Light team in 2017 and has represented more than 50 successful transactions.
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