Art Supplies & Crafts Online Store: 20% Net Margin, 3 Year Stable Cash Flow, Amazon FBA & Strong Social Media Presence, $21 AOV.
This eCommerce brand operates in the Arts & Crafts Supplies Vertical and offers a trademarked line of art supplies, including pigments, glitters, and epoxy resin. With a strong social media presence and net margins of 20%, the company has experienced stable cash flow over the past three years. They primarily sell through Amazon FBA, with an average order value of $21. The company is actively seeking growth opportunities through expanding sales channels, forming strategic partnerships, and targeting the wholesale market. The Arts & Crafts supplies industry, valued at $40 billion, presents ample opportunities for growth and scale.
OPERATIONS
The company efficiently manages its daily tasks and operates out of a 1,000 square foot warehouse. They have a turnkey operation that requires no special skills from the new owner. Inventory management and order fulfillment are handled effectively, with a majority of orders shipped through Fulfillment By Amazon. The current ownership devotes about 20 hours per week to running the business, focusing on product development, managing suppliers and orders, and overseeing customer support.
The company stocks approximately $500,000 worth of inventory and orders new inventory monthly. All orders, regardless of the eCommerce platform, are sent from their 1,000 square foot warehouse. The majority of orders are shipped through Fulfillment By Amazon. The company has successfully created its own packaging in response to market demand.
MARKETING AND KEY METRICS
The company has built a strong social media presence, particularly on Instagram, where they have nearly 2,000 followers. They drive organic traffic to their Amazon shop and Shopify website through social media and maintain an average of 125,000+ unique monthly visitors. They also run PPC ads on Amazon to enhance product visibility within their category. The company plans to shift their marketing focus towards establishing B2B and wholesale collaborations with companies that use their products as raw materials for manufacturing.
The company currently sells primarily through Amazon FBA and has found success by targeting a specific audience. They are now expanding their sales profile by adding eBay, Etsy, Walmart, Faire, and their Shopify website. The company’s growth potential lies in forming strategic partnerships with retailers in other sectors that use their products as raw materials. They have the opportunity to tap into the wholesale market and expand beyond their current direct-to-consumer sales channels.
Key metrics for this business include net margins of 20%, average order value of $21, stable 3-year cash flow, and a strong social media presence with 2,000+ followers on Instagram. The company has also earned a No. 1 Best Seller’s Badge on Amazon in their product category.
The company’s customer base consists of both women and men across a wide age range, with buyers ranging from 16 to 65 years old. They appeal to both college graduates and high school graduates and have a strong following among the crafting community. Customers appreciate the vibrant colors and quality of the products, leading to positive reviews and repeated purchases. The company has a loyal customer base that keeps its products selling year-round.
BUSINESS MODEL & RESOURCES NEEDED
The current ownership devotes about 20 hours per week to running the business, focusing on product development, managing suppliers and orders, and overseeing customer support. They also work with a contractor who serves as their Amazon account manager.
THE INDUSTRY
The Arts & Crafts supplies industry is valued at $40 billion and has experienced a surge in demand since the pandemic lockdowns. This eCommerce brand has positioned itself within this lucrative industry by offering a trademarked line of art supplies, including pigments, glitters, and epoxy resin. The company has proven successful in targeting the crafting community through social media, enjoying 11,000+ positive reviews and becoming a top seller on Amazon. With scale opportunities in other sectors like cosmetics and beauty products, this brand has potential for rapid growth.
OPPORTUNITIES TO SCALE
The company has tremendous scale opportunities, with the potential to form strategic partnerships with retailers in industries like cosmetics, soap making, and candle making. Their trademarked line of art supplies, including pigments, glitters, and epoxy resin, can be used in various applications beyond arts and crafts. By expanding into the wholesale market and targeting manufacturers in need of these materials, the brand can rapidly grow its revenue and establish enduring partnerships within the crafting industry.
Asking Price: $1,900,000
Gross Income: $2,696,481
Cash Flow: $519,721
Year Established: 2018
Employees: 1
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