25-Year-Old Niche Arts & Crafts Retailer Boasts Zero Ad Spend & 80% of Sales from Website
This 25-year-old eCommerce retailer specializes in high-end craft supplies that cater to multiple, specific niches in the arts and crafts segment. The company’s offerings, such as premium wool felts, felting supplies, wool roving, waldorf doll making, and kumihimo, cannot be found in traditional brick and mortar stores. The business sells to schools, museums, crafters, and summer camps, resulting in a high level of repeat customers. They source hard to find products from locations such as New Zealand, The Netherlands, and Nepal, making them the ‘go-to’ source for many unique items.
OPERATIONS
This company operates on multiple platforms, including Amazon, their own branded website, and Etsy, with over 80% of sales coming from their branded website. The business offers its own copyrighted line of patterns, designs, and kits for doll making, accounting for approximately 30% of their annual sales. Over the years, the business has established clean books and records and a solid 25-year track record.
The company sources their products from all over the world. They don’t need to keep a lot of inventory since they cater to specific niches and have little competition in the market. The owner can manage the business with approximately 25 hours per week, with the help of one part-time employee.
MARKETING AND KEY METRICS
This eCommerce company has not spent anything on advertising, yet has achieved such a significant presence in the market by expanding into Amazon, their branded website, and Etsy. They have an existing database of over 7,500 customers, which they haven’t yet tapped into with strong SEM and SMO marketing strategies.
This eCommerce business operates on multiple platforms, with the majority of sales coming from their branded website. They also sell on Amazon and Etsy, but sales here account for only 15% and 3% of total sales, respectively. This leaves a lot of room to drive sales with just a little advertising on these platforms.
The eCommerce retailer made $160,000 in earnings from $400,000 in sales in 2018. The business has had steady YoY sales growth. They have an average order value of $65.99 and a 5-star rating based on over 700 positive reviews on Etsy. Amazon sales account for only 15% of total sales.
The company caters to multiple specific niches in the arts and crafts industry, such as felting, wool roving, waldorf doll making, and kumihimo, selling their high-end craft supplies to schools, museums, crafters, and summer camps, resulting in a high level of repeat customers.
BUSINESS MODEL & RESOURCES NEEDED
There are only two people working in this eCommerce business – the owner and one part-time employee.
THE INDUSTRY
This business belongs to the niche arts and crafts industry, offering high-end craft supplies that cater to specific niches, such as felting, wool roving, waldorf doll making, and kumihimo. Their offerings are not available in traditional brick and mortar stores. Examples of their target audience are schools, museums, crafters, and summer camps.
OPPORTUNITIES TO SCALE
This company has numerous avenues possible for expanding their sales, including implementing strong SEM and SMO marketing strategies, tapping into direct email campaigns, expanding their product line to include more SKUs, broadening their categories to adjacent verticals like Etsy, Pinterest, Walmart, Jet, and others, leveraging affiliate sales networks, and attacking brick-and-mortar shelves in the future.
Asking Price: $520,000
Gross Income: $398,335
Cash Flow: $161,891
Year Established: 1994
Employees: 2
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