The company has continued to grow sales, with e-commerce revenue increasing at a rate of 15% annually. Shepher expects to reach $30 million in revenue for 2015. Online sales are growing much faster than offline sales, and its five-year compound annual growth rate of 9.46% is impressive. Despite its growth, the company has been able to keep its operating costs low while pursuing a strategy of improving overall revenue.

Shepher's online sales have grown 57% since 2009

Shepher is a family-owned business that has been reselling closeout toys to merchants for less than full price for more than five decades. Retail toy sales are slowing, and Monchik attributes the decline in part to mobile apps and educational children's software. But online sales are on the rise. Despite the slowdown, Shepher's online sales are up 57% from the same period in 2009.

The company houses about 7,500 items in its 200,000-square-foot warehouse. About 60% of its orders are processed online. With a focus on e-commerce, Shepher is planning to launch a new web site in 18 months. The company plans to revamp its current site to make it easier for customers to find specific goods. It currently uses a content management system from pureCommerce.

It buys leftovers at a discount rate

The family-owned company is recession-proof, says Matt Monchik, vice president of sales for Shepher.com. He says he and his team buy leftover toys from big retailers and sell them to other merchants at a discount rate. The company has a warehouse that houses about 7,500 items, and 60 percent of orders are processed online. It plans to launch a new website within the next 18 months.

It does not pay fees up front to IMG

Independent Merchant Group Inc. (IMG) is a provider of online merchant account solutions. The company audits merchant invoices to ensure accurate pricing. The company says that by using IMG as its partner, its customers have saved thousands of dollars per year in transaction costs. Although the company does not pay fees up front to IMG, it does receive a percentage of the savings. The company says that integration with QuickBooks is easy.