eCommerce Store Selling Designer Lighting & Fans - 120k SDE - Asking 370k - 3.1x

eCommerce Store Selling Designer Lighting & Fans - 120k SDE - Asking 370k - 3.1x
Listing Type (?): Small Growth Opp

📸 Snapshot:

• Sells premium designer lighting and fans to interior designers, contractors, and homeowners.

• Dropship model with strong margins (~32% profit margin).

• Products governed by Minimum Advertised Pricing (MAP), helping sustain consistent pricing across retailers.

• Supplier relationship is transferable and built around a well-known manufacturer.

✅ The Good:

• High Margins for Dropshipping: 32% profit margins are excellent for a dropship model, where typical margins are often much thinner.

• Stable Pricing Environment: MAP pricing reduces price wars and margin erosion, a big plus in the home goods niche.

• Simple Operations: No inventory management required, making the business scalable with additional marketing.

⚠️ Watch Out:

• Supplier Dynamics: The supplier is established, but it's unclear how aggressively they are adding new retailers. If they’re proactively expanding distribution, future competition could pressure margins through arbitrage. Ideally, you want a supplier that's stable, with existing saturation among sellers to show margin durability.

• Youth of the Business: Founded in March 2024 — less than a year old. Performance is promising, but durability across economic cycles is unproven.

💡 Corey’s Take:
The business is proven in a large evergreen market. Valuation is a bit high for a business that isn’t very aged. Seems like a good opportunity for an experienced online business operator that doesn’t want to run to through the headaches/starvation of start up!

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