High-End Arts & Crafts Supplier with Branded, Copyrighted SKU Lineup and 80% Website Sales
This 25-year-old consumer products eCommerce retailer specializes in high-end arts and crafts supplies, particularly fiber art supplies. They offer premium wool felts, felting supplies, wool roving, waldorf doll making, and kumihimo. Their products cater to specific niches such as schools, crafters, museums, and summer camps, resulting in a high level of repeat customers. They source hard-to-find products from around the world, creating a barrier to entry for competitors. The business operates on multiple platforms, with over 80% of sales coming from their own branded website.
OPERATIONS
The business operates on Amazon, their own branded website, and Etsy. Their branded and copyrighted line of patterns, designs, and kits for doll making accounts for 30% of annual sales. The owner spends approximately 25 hours per week managing the business with the help of one part-time employee. The company has clean books and records and has shown steady year-over-year sales growth.
The business sources products from around the world, including New Zealand, The Netherlands, and Nepal. They have established relationships with suppliers and have reliable logistics in place to ensure timely delivery to customers.
MARKETING AND KEY METRICS
Currently, the business does not advertise and relies on organic sales. However, there are opportunities to implement a strong SEM and SMO marketing strategy and tap into direct email campaigns to their existing database of over 7,500 customers. They can also expand their product line and broaden their categories to adjacent verticals. The business has a high-quality brand presentation and trademarked lineup, allowing for potential expansion into brick-and-mortar retail.
The business currently operates on Amazon, their own website, and Etsy. There is significant growth potential on these platforms through targeted advertising. They can also explore additional sales channels such as Etsy, Pinterest, Wal-Mart, Jet, and affiliate sales networks. By diversifying their sales channels, this business can reach new customers and increase sales.
The business generated over $160,000 in 2018 earnings from $400,000 in sales, with an average order value of $65.99. They have a solid 25-year track record and a high level of customer satisfaction with over 700 positive reviews. Sales on Amazon account for 15% of total sales, and sales on Etsy account for just 3%. There is significant potential for growth on both platforms with targeted advertising.
The business caters to multiple niches within the arts and crafts market, including schools, crafters, museums, and summer camps. They have a high level of repeat customers, indicating customer satisfaction and loyalty. The unique and hard-to-find products they offer attract customers looking for high-quality and specialty materials.
BUSINESS MODEL & RESOURCES NEEDED
The owner spends approximately 25 hours per week managing the business, and there is one part-time employee who assists with operations.
THE INDUSTRY
The arts and crafts industry is a growing market, with a wide range of customers including schools, crafters, museums, and summer camps. This business specializes in high-end arts and crafts supplies that cannot be found in traditional brick-and-mortar stores. They offer unique and hard-to-find products, creating a niche within the market. The industry has experienced increased interest and participation in recent years, with consumers seeking creative outlets and unique handmade products. Examples of other companies in this industry include Etsy, Michaels, and Jo-Ann Stores.
OPPORTUNITIES TO SCALE
This eCommerce company offers various opportunities for scale, including implementing a strong SEM and SMO marketing strategy, expanding their product line, and entering international markets. They can also explore diversifying into generic and niche-specific channels such as Etsy, Pinterest, Wal-Mart, Jet, and others. The business has a strong brand presence and trademarked lineup, putting them in a favorable position for growth and expansion.
Asking Price: $520,000
Gross Income: $398,335
Cash Flow: $161,891
Year Established: 1994
Employees: 2
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