Explosive Growth in the Apple Watch Strap E-Commerce Market: 39 Products & 204,000 Monthly Site Visitors
The eCommerce Brand provides stylish and high-quality Apple Watch compatible straps and accessories to customers worldwide. The products include metal, silicone, and leather straps with various colors and styles. The brand aims to personalize and accessorize Apple Watches with fashionable straps that provide comfort and security to customers.
OPERATIONS
The products are sold via the Branded Websites using a DTC model. The brand is continuously working to improve and expand its products via product testing. Physical stock of established products is maintained in distribution facilities, while DropShipping is used for testing new products. The brand uses Digital marketing primarily through Google and Facebook Ads and has recently achieved significant sales growth through Instagram marketing. The business experiences little seasonality in sales besides the standard industry peak during the holiday season.
The business sources its products with the help of a Chinese sourcing agent who has over ten years of experience in logistics, fulfillment, and sourcing. The brand only uses the best materials to ensure top product quality. The company has warehouses in Asia and works with a third-party logistics provider in the US to handle the fulfillment and shipping of orders. Physical stock of established goods is held in distribution facilities, while DropShipping is used for testing new goods.
MARKETING AND KEY METRICS
The business works with a conversion rate optimization agency to test different website elements to improve sales. The team uses a variety of marketing strategies such as structured email campaigns and paid media advertising to drive traffic to the website and convert that traffic into paying customers. An ambassador program is also in place, making a significant boost to sales, with a 20% commission paid on sales made.
The product is currently only sold via the Branded Websites using a DTC model. There is tremendous potential to add various marketplaces such as Amazon and Walmart to the sales channel mix to grow sales significantly.
The brand has 204,000 monthly site visitors, 39 products in the market with an average order value of $48, no SKU concentration, and strong year-on-year growth. It predominantly sells to middle-aged, affluent women who want to personalize and accessorize their Apple Watches.
The target customer base is predominantly middle-aged, affluent women who want quality and stylish Apple Watch Straps to suit various outfits and occasions. They are willing to pay a premium to purchase high-quality, fashionable items. The brand utilizes social media platforms, conversion rate optimization agency testing, and structured email campaigns to drive traffic to its website.
BUSINESS MODEL & RESOURCES NEEDED
The business has a full-time, in-house team for customer support consisting of one team leader and two agents. The content creators work as contractors on a per-project basis. The business owners manage marketing, website maintenance, logistics, product identification, order management, company management, and hiring the full-time staff.
THE INDUSTRY
The eCommerce Brand caters to the market of Apple Watch users who want a range of high-quality straps and accessories to personalize and accessorize their watches. Since Apple Watch’s popularity, the market for watch straps and accessories has been booming. The online brand, Crown and Buckle, is an excellent example of a similar company. They cater to a broader audience who own wristwatches and have an extensive line of straps regularly sold via various sales channels.
OPPORTUNITIES TO SCALE
The potential for the business to grow via product expansion and additional sales channels is considerable. The acquisition opportunity is ideal for an ambitious new owner to maximize its potential and enjoy a swift and substantial return on investment. In addition, the owners’ fulfillment center service can be included in the deal.
Asking Price: $1,500,000
Gross Income: $2,624,443
Cash Flow: $428,140
Year Established: 2022
Employees: 7
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