Business Summary:
Internet Retailer of Gadgets and Gifts plus Consumer Electronic Products
Ref.AH113
Location North West London
Asking Price £150,000
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.
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| Facilities / Terms of Lease:
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.
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| Potential
Growth/Expansion:
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. |
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