Website Closers® presents a business that has achieved extraordinary sales and profitability in its niche in a short time. The brand specializes in air ionizers, purifiers, and sanitizers. This niche industry is strong and growing with a lot more interest in buying these items online, versus instore. The company’s profits soared during the pandemic since many people were looking for home purification during that time. Interestingly, company sales for 2022 are up over last year with earnings remaining stable with 2021. While there was some margin erosion early in the TTM due to supply chain issues, those issues have since lifted — so as time progresses — the margin erosion will shrink helping to make this company even more profitable in the upcoming quarters. These results prove that this air purification product array was not a “pandemic play”, but a solid, growing brand with expanding sales channels, SKUs and new initiatives in Recurring Revenue. While Amazon is a relatively new channel for them, it has been a huge boon to sales with the company realizes doubling sales in that channel at the moment.
With a strong social media presence and an extensive email database to help drive new product launches and re-purchases, the business drives substantial traffic with many repeat customers. This has given the company a solid footing in its niche. Four products, making up 10 SKUs, bring in a high average order value of $115, and sales are thriving. And the company is working on new products for future launches as well.
As successful as the brand is, they have not fully tapped into the industry’s colossal influencer marketing opportunities, affiliate relationships or focused on SEO. All options have shown a great return on investment in this niche and can easily be outsourced to specialists. Additional scale opportunities involve international and domestic growth. 99% of sales currently take place in the United States. Substantial proliferation exists in opening new markets for the brand. Internationally, they have done some preliminary testing in Latin America and Europe. Both regions look highly viable for growing the brand. Locally, expanded relationships with Walmart and Wayfair and new relationships with partners like Bed Bath Beyond, and Target, for example, would prove enormously lucrative. The opportunities to scale this business dramatically are endless.
The company recently introduced three new products to the market with consumable components, creating repeatable subscription revenue. The brand is in the early stages of growth for these products. Still, a substantial repeat purchase revenue opportunity is built into the business model. So naturally, this model creates high customer retention and lifetime value, likely adding tremendous and sustainable profitability and, importantly, an additional revenue channel to the already thriving business.
Sales are predominantly made through the brand’s Shopify-built website, which accounts for 72% of direct-to-consumer sales. The website is clean and full of well-shot product photos. Additionally, it’s easy to navigate and user-friendly. The images clearly show the products, and USPs are explained concisely. Amazon makes up 28% of the remaining sales, while Walmart and eBay each claim 1%.
Direct Response Digital marketing that targets the brand’s core customer personas is the foundation of the marketing strategy. Powerful channels like Facebook, Google, and YouTube drive the core of the demand generation model. They are supported by a robust effort via email marketing, brand social, and third-party marketplaces.
Operations are incredibly well automated with a team in place, ready for new management. The company employs several full-time employees under a shared services model. Additionally, contractors are used for 3rd party logistics, ad creative, media buying, influencer marketing, analytics, and product development. To the extent needed by a buyer, a team of people will be continuing with this brand to ensure continuity of operations.
An internal product development team designs each new device and works with an offshore product sourcing team to bring those products to market.
This brand has already demonstrated that it has what customers want in their homes and offices. There are alternative product categories they could profitably expand into. This brand has a phenomenal track record which would be easy for any buyer to use as the starting point for incredible growth.
This eCommerce Company is Represented by:
Tech, Internet & eCommerce Business Brokers