High-Margin Ecommerce Brand Website with Amazon.com Sales Channels and Strong Social and Email Following
This eCommerce business has developed a highly giftable, sleek, and high-quality slim wallet for men. They have built a committed customer base among men and women, which has resulted in an impressive 79% gross profit margin. The company has an experienced operations team in place that handles multiple tasks, including purchasing products, receiving SKUs, customer inquiries, and shipments. An agency team handles marketing and social media strategies.
OPERATIONS
The company’s process is a seamless one, and it benefits from a 10-year relationship with its suppliers. The brand’s Shopify website represents the majority of its sales, but it’s also present in Amazon’s platform. The business now enjoys 15% of sales from this additional channel. Products are shipped in bulk to their fulfillment center, then stored, and made ready to be shipped with a gift box, promotional literature, and a poly bag.
The fulfillment center stores a variety of SKUs and is responsible for shipping the orders straight from stock on hand. Gift boxes, promotional literature, and a polybag come along with each shipment. The business benefits from a 10-year relationship with its suppliers.
MARKETING AND KEY METRICS
The company has a strong social and email following, with more than 27,800 followers on Instagram and 23,280 on Facebook. PPC ads on social media and Google drive traffic to its website. The company has nearly 20,000 SMS subscribers and a robust email database of almost 175,000 subscribers. Additionally, an SEO program entirely optimized the company’s website to boost search engine rankings.
Everything is fully in place for this company to quickly take advantage of immense scale opportunities, such as Brick and Mortar retail placement, marketing wholesale, opening wholesale avenues and gifting programs or SKU expansion into other aspects of the leather goods market.
With $870,990 in gross income and $127,809 in cash flow, the business has an impressive 79% gross profit margin. The company benefits from a 10-year relationship with its suppliers and has nearly 20,000 SMS subscribers and an email database of almost 175,000 subscribers. The company averages 40,000 visitors each month on its website, and its Repeat Customer Rate is 14%, a substantial 112% jump from 2020.
The company’s typical customers are men between the ages of 21 and 44, with a repeat customer rate of 14%. They don’t have a seasonal business and sell steadily, but sales peak during popular gift-giving times like Father’s Day, high school, and college graduations. They also have a considerable female demographic, mostly gift-givers who would pay for premium upcharged options to pamper their loved ones.
BUSINESS MODEL & RESOURCES NEEDED
The company benefits from having an experienced Operations team in place that handles multiple tasks, including purchasing products, receiving and storing SKUs, addressing customer service inquiries, and processing shipments. The company has an agency team in place to handle marketing, including media services, conversion rate optimization, and social media strategies. An experienced customer service team provides timely responses to customer inquiries and upholds the company’s reputation for outstanding customer service.
THE INDUSTRY
Slim wallets have become more fashionable and in high demand in 2021, particularly with top-grain leather and colorful finishes that look stylish alongside any wardrobe. There is a growing trend for designer wallets exclusively for men, which have gained enormous traction in the market. This company designs, develops, manufactures, and distributes its own specialized collection of slim wallet products for the fashionable and discerning male.
OPPORTUNITIES TO SCALE
The business could scale up by marketing wholesale to large and smaller chain stores and attract a new customer base. Brick and mortar retail placement would drive brand recognition and increase direct sales. Gifting programs or SKU expansion into other aspects of the leather goods market could offer product diversity and bring a new array of buyers to the table. Another key target would be gifting programs for weddings or corporate events. The company also has opportunities to list SKUs on new eCommerce platforms such as Walmart, Etsy, and Jet.
Asking Price: $375,000
Gross Income: $870,990
Cash Flow: $127,809
Year Established: 2015
Employees: 1
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