Established Ecommerce Brand in Model Airplanes & Collectibles Accessories – 50% Repeat Order Rates
This eCommerce brand specializes in model airplanes, collectibles, and accessories. With over 10,000+ SKUs, they cater to collectors who make large purchases and have a dedicated customer base of 20,000+. The brand is known for its high-quality products and excellent customer service. They have experienced consistent sales growth, with 50% of sales coming from repeat customers. The company was founded in 1997 and operates with a team of 5 employees.
OPERATIONS
The company operates a 10,000 square foot warehouse with over 35,000 pieces of inventory. They ship around 60 orders per day on average and have a quick turnover rate of 6 months to a year. The owner spends 10-20 hours per week running the business, supported by a director of operations, office manager, warehouse manager, and part-time developer.
The company operates a 10,000 square foot warehouse for inventory storage. They have over 35,000 pieces of inventory and typically ship 60 orders per day. The turnover rate for inventory is approximately 6 months to a year.
MARKETING AND KEY METRICS
The brand has a strong emphasis on word-of-mouth referrals from satisfied customers. They also utilize email marketing with a subscriber base of 12,000 and have a social media presence with 1,400+ followers on Facebook. Traditional advertising, such as ads in aviation magazines, has also been effective in driving traffic to their website. They have recently started using Google Adwords to increase sales.
Currently, most sales are conducted on the company’s website. They have also started listing some items on Amazon and eBay. An opportunity for growth would be to significantly expand their presence on these platforms, particularly Amazon, to reach a larger customer base. They could also explore wholesale market expansion, digital marketing, and adding new product categories like aviation art, apparel, gift items, children’s toys, and drones.
The key metrics for this business include sales revenue, average order value, repeat order rate, and customer loyalty. With over $1 million in sales, an average order value of $182, and a 50% repeat order rate, the company has a strong customer base that continues to grow.
The company has a loyal and diverse customer base of over 20,000+. While their primary customer base has been men, they attract buyers from age 30 to 100. They have customers who have been with them for over 20 years. Sales remain consistent year-round, with increased spikes around holiday seasons.
BUSINESS MODEL & RESOURCES NEEDED
The company employs a team of 5 people, including a director of operations, office manager, warehouse manager, and part-time developer. They handle order fulfillment, customer communication, inventory management, and website maintenance.
THE INDUSTRY
The model airplanes, collectibles, and accessories sector has a large and growing customer base of aviation memorabilia collectors. The company operates globally and is recognized for having the largest inventory of high-quality aviation and military collectibles. The industry has seen advancements in quality, craftsmanship, and authenticity, making these products more valuable and appealing to collectors. The company also offers exclusive products developed specifically for their online store, which have performed exceptionally well with customers.
OPPORTUNITIES TO SCALE
There are several scale opportunities for this business. Expanding presence on Amazon and other online marketplaces would provide a larger platform for sales. Adding new product categories like aviation art, apparel, and children’s toys would attract a wider range of customers. Exploring the wholesale market and digital marketing would also contribute to growth potential.
Asking Price: $1,500,000
Gross Income: $1,239,348
Cash Flow: $251,153
Year Established: 1997
Employees: 5
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