Charging Cable and Smartphone Accessory Brand with 40% AOV & 27% Repeat Order Rate and Strong TikTok Following
This eCommerce company specializes in the production and sale of magnetic charging cables and smartphone accessories. Their primary focus is on cable connectors, which is the heart of power supply for smartphones, tablets, and laptops. The company offers high-quality products, including a 3-in-1 magnetic charging cable, which allows customers to charge their multiple devices at once. Their custom-branded products come with recyclable packaging and safety certificates, making them stand out from the competition. With a strong repeat customer rate and an attractive AOV, the company has expanded its product line and used multi-layered marketing approaches, including PPC ads, email marketing, SMS text messaging, and affiliate marketing, to achieve a solid market position. They have strong demographics that appeal to families with multiple children, tech enthusiasts, and gamers. It is a rapidly innovating industry with constant product improvements that offer significant scale opportunities.
OPERATIONS
This business is highly automated, with strong systems in place, enabling the owner to work just 5 hours or less per week. Their fully operational website on Shopify, along with their product sourcing system and third-party logistics for inventory management, is highly streamlined. The company employs a full-time operations manager, along with several part-time employees, including video editors, graphic designers, Facebook comment moderators, and website speed and SEO optimizers.
The company obtains their products from a single manufacturer that fulfills orders through its warehouse and ships them to clients in the UK, US, and Australia. The company has negotiated attractive pricing terms with their manufacturer, allowing them to ship their products from China through a 3PL for delivery to the above-mentioned countries.
MARKETING AND KEY METRICS
The company has used multi-layered marketing methods such as PPC ads, email marketing, SMS text messaging, affiliate marketing, and social media advertising through Facebook, Snapchat, YouTube, and TikTok to promote their products. Their videos on YouTube and TikTok have amassed combined views of over 600,000. With a 45,000 strong email list and 20,000 SMS subscribers, they are well-positioned to take advantage of these for their newsletter campaigns. Their social media following numbers are strong with 7,000 on Instagram, 4,000 on Facebook, and 10,000 on TikTok (with 73,000+ likes). Affiliate marketing steers around 10% of revenue, while PPC advertising drives up to 60% of site traffic and hence revenue.
The company’s primary sales channel is their own Shopify website, where they offer free shipping on orders above $30 in the US, UK, and Australia, driving strong orders every month through the year. Their focus is on innovative products with new designs and extra features that get added to the core product offering. They are presented with enormous opportunities to grow and scale rapidly in the industry by focusing on product innovation and keeping an eye on emerging trends.
The company has a solid repeat customer rate of 27%, and their products have an average order value of $40, enabling them to maintain a healthy profit margin. They maintain an inventory of $20,000, which they order regularly due to strong demand. Their monthly unique website visits average 40,000+.
The company has a diverse customer base that includes families with multiple children, tech enthusiasts, and gamers. Their products appeal to people globally, and they have strong demographics. They have over 45,000 email subscribers and 20,000 SMS subscribers that they utilize for newsletters and repeat business. Their many satisfied customers rate their products positively, leading to an excellent reputation for the company.
BUSINESS MODEL & RESOURCES NEEDED
The company has a full-time operations manager and several part-time employees, including video editors, graphic designers, Facebook comment moderators, and website speed and SEO optimizers.
THE INDUSTRY
The company operates in the smartphone accessories sector, which is now a $104 billion industry. Their focus on magnetic charging cables and cable connectors has been a key draw for the market and the company. They offer products that appeal especially to families with children who have multiple devices for gaming and tech enthusiasts. With an estimated 6.57 billion smartphone owners in the world increasing by 5% annually, the demand for electronic device chargers is soaring, especially for more innovative devices that offer high convenience, a trend that companies are leveraging for rapid growth.
OPPORTUNITIES TO SCALE
The company has excellent scale opportunities by introducing new products, especially accessories that offer high convenience and a premium look and feel to attract tech enthusiasts and young buyers who value innovation and high quality. Focusing on emerging design trends and working together with influencers and brand ambassadors to share their new products with their followers and subscribers can create an exciting buzz that could help drive traffic and sales on their website.
Asking Price: $500,000
Gross Income: $813,445
Cash Flow: $181,409
Year Established: 2019
Employees: 5
- Two Highly Profitable Sports & Fitness Ecommerce Brands For Sale - July 8, 2023
- Branded Ecommerce Company for Baking Goods - July 8, 2023
- Trendy Baby Fashion Retailer Ready to Launch - July 8, 2023
