Expanding a European E-Commerce Brand in the Custom Jewelry Industry – 40 AOV, 7 Countries, 22% Net Margin, 130% YOY Growth, 6 Shopify Websites
This thriving European eCommerce brand specializes in personalized jewelry. Customers can design jewelry pieces providing their own texts, names, and images. The brand operates across 7 countries and offers 65 active products in various colors giving endless possibilities. The jewelry is DropShipped from a Chinese supplier, and all shipments are managed by a fulfillment center comprising a large team and warehouse. Digital marketing efforts including meta and Pinterest Ads and email marketing account for around 80% of sales.
OPERATIONS
Operations are exclusively in the European market, and the team has tested various angles to sell its jewelry. Focusing on friendship, family, grief, newborns, and gifts has proven to be the most rewarding. During the holiday season, between 300 and 400 orders are shipped daily. The majority of business operational tasks have been outsourced or automated, which leaves the owner to focus on growth strategy. With a team of 13 staff members working part-time across various capacities, this business has proven to be easy to run.
The brand’s Chinese supplier DropShips its jewelry pieces, eliminating the need to pay for warehouse workers, rent, and utilities, which alleviates the logistics headaches of running a warehouse. A fulfillment center comprising a large team and warehouse manages all product shipments, while the owner only works five to ten hours weekly.
MARKETING AND KEY METRICS
Digital marketing efforts are highly effective. Meta ads, Pinterest ads, and email marketing account for around 80% of sales, while campaigns on Google Ads, TikTok, Our Brokers, and organic search make up the remaining sales across all stores.
The main channels of products’ distribution and growth include digital marketing. With 80% of overall sales derived from meta ads, Pinterest ads, and email marketing, campaigns on Google Ads, TikTok, Our Brokers, and organic search make up the remaining sales across all stores, and additional peaks occur on Mother’s Day, Black Friday, Cyber Monday, and Sinterklaas— a Dutch holiday. The company is collaborating with a Google Ads agency and TikTok agency, and campaigns on both channels will soon be active.
The brand has a 22% net margin, and sales have grown by 130% YOY. The average order value is $40.
The typical customer is a woman, usually a mother, between 25 and 60 years old, who loves wearing jewelry with the names and images of her children or grandchildren and spends $40 per order.
BUSINESS MODEL & RESOURCES NEEDED
All staff members have been hired through freelance platforms and work part-time across various capacities. The experienced team is enthusiastic about remaining with the company post-acquisition, and a buyer without expertise in a particular aspect of the business can easily hire a specialist or outsource the task to an agency.
THE INDUSTRY
These days, personalized jewelry is a popular evergreen niche that has an enormous target audience. It is suitable and popular for different events during the year. The customized jewelry’s emotional value has proven consistently to be a key selling point. The brand’s team has experimented with various angles and product categories to sell the jewelry. Those that have proven rewarding include a focus on friendship, family, grief, newborns, and gifts.
OPPORTUNITIES TO SCALE
With a highly automated and well-oiled operation focusing on personalized jewelry, a new owner could significantly expand this business and witness a hasty return on investment. The online company’s jewelry is uncomplicated to sell and has an enormous target audience. A buyer can enjoy the fruits of four years of labor with minimal effort and expand the business quickly.
Asking Price: $980,000
Gross Income: $1,276,078
Cash Flow: $279,804
Year Established: 2019
Employees: 13
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