WebsiteClosers® presents a DTC eCommerce company operating profitably in the lucrative smartphone accessories market. Now 10 years old, the company has attracted a loyal customer base for its line of premium screen protectors for smartphones, tablets and smartwatches. These products are sold on their website and on Amazon, and their company also maintains a website focused on the Romanian market. Sales are growing quickly as the company continues expanding its product line, with new screens in developing for different devices and new product lines in the works.
With 43 SKUs available at an Average Order Value of $21, the company has become popular with its buyers not only for the high quality of its screens but also easy installation. Each product comes with an innovative install kit and video instructions to simplify installation, and the company stays current with the release of the latest devices so customers have instant compatibility with all new phone and watch models.
The company has also put a strong focus on providing superior customer service, which includes support after the sales have been made. This has given this business high customer ratings and a Repeat Customer Rate that just shot up by 11%.
The company has developed a strong brand reputation over the past decades. With products manufactured directly for them, all products are sold exclusively under their registered and trademarked brand name. Sales are not impacted by seasonal factors and remain healthy year-round, although sales peak whenever a new iPhone model is released.
This is a highly profitable and evergreen industry. The global smartphone screen protector market is valued at $51 billion, and the brand’s tempered glass screens hold a massive 90%+ share of this market due to how durable these products are, making them the top choice among consumers. Adding in screen protectors for tablets and other devices, such as laptops or gaming consoles, the total screen protector market is now earning $60 billion, and with an estimated 7.1 billion people owning a smartphone, this market is only expected to get stronger.
No single product dominates this company’s sales, which include numerous top-selling items, so the business is not dependent on a single product to drive sales. This diversification of its products has also given the company a solid foundation for scaling quickly. The business has already laid the groundwork for two additional product lines, which the new owner could quickly launch to boost upsells and cross sells to the existing customer base.
This business is a great opportunity for a strategic buyer to acquire it and scale it rapidly. There are multiple solid opportunities, including by continuing to upgrade new versions of existing products, expanding into new products designed for tablet models and iPads, launching an international expansion into Amazon’s other foreign marketplaces, and targeting B2B accounts to retail shops and big box stores that market smartphones and related accessories.
Business Broker Takeaway
We are excited about this business for 3 important reasons:
1. Operational Efficiency: This is a lean operation that has detailed Standard Operating Procedures in place. The current owner works as little as 2 hours per day, since most daily tasks are systematized, particularly on the Amazon platform. A team of experienced contractors is in place, including two full-time customer support representatives, a part-time worker handling stock management, and a part-time virtual assistant who handles bookkeeping and admin tasks. This team is available to stay in place for the new owner, who can take advantage of this lean team structure to focus on scaling this business.
2. Strong Customer Experience Framework: From the start, the company has focused not only on providing high quality products but also excelling at customer service. The company has enhanced customer satisfaction by including an innovative Install Kit with every sale, so the screens have a simple installation process to follow, and video instructions are also available on the company’s website to provide further guidance. This has contributed to high customer ratings on many of their products and plenty of repeat purchases. The company maintains a highly effective customer support system that has also helped to turn customer service interactions into positive reviews.
3. Unique Internal Tools: Beyond its standard software, the company operates far more efficiently through 7 proprietary tools that have provided their team with real-time insights on inventory management, sales, ROI on paid media, and feedback on customer service. The business also has enrolled in Amazon’s Account Health Assurance program and uses QuickBooks and SellerBoard as tools to keep their finances clean. These tools provide a buyer with a highly automated and functional business that is primed for scaling.
Conclusion
Since the company was first launched, it was built with long-term scalability in mind. This business operates in a tremendously profitable vertical since smartphone use is near universal across the globe, and a step as simple as expanding sales into other countries on Amazon’s foreign platforms would be a major game-changer for this company.
The new owner will inherit a loyal customer base, a business with strong brand recognition, and a reputation for innovative installation solutions and first-rate customer service. With solid scale opportunities awaiting the new owner, this business is ready to be taken to the next level.
