Two Brands of Jewelry, Four Shopify Websites – A Profitable E-Commerce Business Opportunity
This eCommerce company focuses on providing jewelry products for Men and Women through 2 Brands and 4 Shopify Websites. Their gemstone collection features authentic stones and premium materials while the men’s jewelry catalog comes with unique and beautiful designs that are made of high-quality stainless steel. Their typical customers are older women and young and middle-aged men who love affordable and luxury pieces with personal meaning. The company uses a dropshipping model to operate without inventory, and most of their sales are driven by Facebook Ads and email marketing. The brand has a loyal and significant following, a low seasonality business, and a $47.50 Average Order Value.
OPERATIONS
The company has a reliable supplier that ships all orders directly to customers to operate on a streamlined dropshipping model. The current owners, who work just three hours a day, focus on Facebook Ads and maintaining relationships with their supplier and three VA’s that handle customer service emails and maintain the Facebook pages.
As they use a dropshipping model, the company operates without inventory and has no overhead costs associated with storing and shipping inventory. They work with a reliable supplier that ships orders directly to customers, which offers the owners the flexibility of working from anywhere or to begin inventorying some products.
MARKETING AND KEY METRICS
The brand’s primary marketing channels are Facebook Ads and email marketing through a contracted marketing agency that drives sales and boosts traffic to the websites. They have an impressive list of email subscribers; newsletters are sent out to advertise special deals, updates, and more information to stay connected with their customers.
The company currently only sells through their Shopify storefronts, leaving Amazon and Etsy as two immediate, low-hanging fruit opportunities for growth through increased visibility. They are consistently adding new products because many jewelry lovers appreciate meaningful and luxury pieces that are affordable.
The business has a 20% repeat customer rate for gemstone products, a lifetime value of $55, and a lifetime value of $53 for men’s jewelry products. They see 250,000+ monthly website visits through their four Shopify websites and have a $47.50 Average Order Value.
The typical customers of the company are young and middle-aged men interested in classy jewelry and older women who appreciate unique and meaningful gemstone jewelry pieces. They have a loyal and significant following on Facebook and an impressive list of email subscribers that receive newsletters promoting special deals, updates, and information to stay connected with their customers.
BUSINESS MODEL & RESOURCES NEEDED
With just three VA’s that handle customer service emails and maintain Facebook pages, the company has simple operations requiring no special skills.
THE INDUSTRY
The jewelry industry is highly competitive, and online sellers compete with other online brands, brick-and-mortar jewelry stores, and department stores such as Macy’s. With an abundance of online jewelry brands, competitors include well-known online brands such as Pandora, Alex & Ani, and Zales among others.
OPPORTUNITIES TO SCALE
There are several scale opportunities for the business, including expanding to international markets, growing into Amazon and Etsy (joining the marketplace), expanding product lines to cater to different customers and demographics, and increasing social media presence and ads targeting.
Asking Price: $1,400,000
Gross Income: $4,570,061
Cash Flow: $635,638
Year Established: 2020
Employees: 3
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