Crypto Brand Ecommerce Business with 276% YOY Revenue Growth on Amazon & Shopify
This eCommerce business has become a leader in providing products for the cryptocurrency market, specifically related to security and privacy concerns. Their hero SKU is a stainless steel wallet that stores the owner’s seed phrases backing up their hardware. The company now has 16 parent products arranged in various bundles, and they have successfully marketed to customers on their Shopify website and on Amazon. They have enjoyed 276% YOY revenue growth, and projections show that cryptocurrency will only continue to rise in popularity.
OPERATIONS
The company produces and sells hardware wallets for cryptocurrency, including a backup to other hardware wallets and complementary products such as faraday bags and mounts for hard-to-find places. They sell 61% of their products on their Shopify website, 29% on Amazon, and receive a considerable amount of traffic through organic and affiliate marketing. They also have an email database with over 11,000 subscribers that could be used for promotions and upsells.
The company keeps 1.5 months’ worth of inventory on hand and stocks 100% of all products. They currently have no issues with seasonality, and their main products are not tied directly to any one coin.
MARKETING AND KEY METRICS
The brand generates most of its online traffic organically and has an active affiliate marketing program. They have had success with lead magnet pages and generate much affiliate traffic through popular industry sites. Social media has played a key role in their success as well, including an active Twitter account with over 3,500 followers. The brand could expand its PPC ad strategy to include Google, as well as investing in ads on Facebook and Instagram.
The company sells 61% of their products on their Shopify website, 29% on Amazon, and receive a considerable amount of traffic through organic and affiliate marketing. They also have an email database with over 11,000 subscribers that could be used for promotions and upsells.
The company has had an impressive 276% YOY revenue growth. Their average order value for DTC sales is $164, while its wholesale orders are incredibly profitable with an AOV of $5,248. The company also keeps 1.5 months’ worth of inventory on hand and stocks 100% of all products.
The company has been successful in selling to customers on their Shopify website and on Amazon, as well as receiving B2B orders. Their main products are a solution to privacy and security concerns in cryptocurrency, making a unique opportunity for investors.
BUSINESS MODEL & RESOURCES NEEDED
The company has had incredible success with a small team of four employees.
THE INDUSTRY
The cryptocurrency market is growing in popularity, with more than one in ten U.S. citizens investing in virtual coins. The demographics slightly favor men and millennials, with young market newcomers discovering crypto through social media channels. Security measures to keep Bitcoin ‘private keys’ safe from cyber criminal’s and hackers are gaining strength in the market.
OPPORTUNITIES TO SCALE
The company could expand their PPC ad strategy to include Google, as well as investing in ads on Facebook and Instagram. Social media reach will be greatly improved by latching onto the brand’s target demographic via influencer marketing. The company has an opportunity to establish bundling with other hardware wallets and create partnerships with major players in the Crypto Field.
Asking Price: $2,800,000
Gross Income: $2,123,608
Cash Flow: $777,530
Year Established: 2018
Employees: 4
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