Gorgeous Handcrafted Watch Band and Bracelet Designs with 80% Profit Margins and 25% Repeat Customer Rate
This eCommerce brand offers handcrafted and stylish replacement bracelets for popular smartwatch brands. With 700+ SKUs and a 25% repeat customer rate, the company has a strong hold on the market. Their wristbands are compatible with most smartwatches and made using trademarked materials with a unique design. They sell mainly on Etsy and have strong organic and paid traffic from social media and PPC ads. The operations are well-managed with good supplier relationships, inventory management, and a small team of two employees. The industry is evergreen with a growing market valuation due to technological advances. The brand could diversify their sales channels for more profit.
OPERATIONS
The company sources materials and manufactures directly for themselves. They have a franchise model for other types of watchbands and maintain a minimum inventory worth $30,000. They sell mainly on Etsy and have good onsite and social media marketing strategies. Operations are well-managed, with an efficient team, good inventory management, and supplier relationships.
The company sources materials from the US and has established relationships with their suppliers. Inventory is stored in their warehouse and a minimum of $30,000 worth of inventory is maintained to keep up with demand. They ship an average of 40 packages per day.
MARKETING AND KEY METRICS
The company uses onsite ads, PPC advertising, and social media effectively to drive traffic and sales to their listings on Etsy. They have 24,800+ followers on Instagram, 14,000+ followers on Facebook, and 87,000+ monthly views on Pinterest. Their wristbands are popular gift items and drive repeat business due to strong organic traffic mostly from repeat customers.
The company mainly sells on Etsy and has strong organic and paid traffic from social media and PPC ads. They could diversify their sales channels by listing on other major eCommerce platforms. With proven scale options, they are at the tipping point of skyrocketing profits.The company is expanding its B2B sales channels, which could prove to be a significant sales driver in the future. The brand has one consistent wholesale client who has spent more than $30,000+ on orders, and with some creative marketing, the brand could quickly drive more B2B sales in the future.
The company has a 25% repeat customer rate, with an average order value of $49. They have processed over 52,000 orders with more than 7,000+ 5-star reviews. Sales are strong throughout the year, with peak seasons around holidays and special occasions. Most of their sales come from organic traffic and they have 110,000+ unique monthly visitors due to their onsite SEO and social media marketing.
The customer base is largely women between the ages of 24 and 65, while their products appeal to people who like to keep up with fashion trends. Organic traffic is mainly driven by repeat customers due to their quality and unique product designs.
BUSINESS MODEL & RESOURCES NEEDED
The company has a small team of two employees: one handles customer service, while the other crafts their products. The owner focuses on tasks such as designing, researching new models, fulfilling orders, and managing sales channels.
THE INDUSTRY
The watch industry is valued at $61.8 billion and projected to grow by 4% through 2026 due to technological advances. Watches are evergreen and popular as a fashionable accessory. The demand for smartwatches is strong, especially among young consumers. With a growing list of SKUs, this company has a good hold on the market.
OPPORTUNITIES TO SCALE
The company could diversify their sales channels to other major eCommerce platforms and franchise their handcrafted designs. They have already developed a loyal customer base and have a growing repeat customer rate of 25%. With a market valuation projected to grow, they have potential for more profit and growth.
Asking Price: $899,000
Gross Income: $728,716
Cash Flow: $240,638
Year Established: 2018
Employees: 2
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