Website Closers® presents an eCommerce Brand that recognized and skillfully met a demand among food service professionals and mechanics alike. They are based in the Nitrile Glove Market, selling their 8 SKUs, which are thicker and more durable than standard options, to B2B and DTC customers. The former accounts for 60% of their total sales, with their average customer being restaurants and hotels buying 2 to 10 cases per week.
The brand sells to customers in the US through a combination of Amazon, Shopify, and B2B partnerships. They have an AOV of $40 and $175 on Amazon and Shopify respectively and see no seasonality throughout the year. Additionally, they have a 4.7-star average rating on Amazon, 50% Net Profit Margins, and their nitrile gloves enjoy a Best Seller status in specific categories. Their inventory is made in Thailand and sourced domestically. Since gloves are a low maintenance product, they typically see less than one customer inquiry per week.
Business Broker Takeaways
1. Turnkey Business Model. The company has streamlined their operations by utilizing FBA and 3PL for their inventory needs, allowing the owner to focus on their primary responsibilities. They spend an average of 20 hours per week handling customer service, marketing strategies, and sales growth, some of which could be handled by new employees if a buyer is looking to reduce their workload. They currently have no employees outside of a salesperson on commission.
2. Straightforward Marketing. The company outsources their Amazon PPC and SEO to Sophie Society, which they supplement through affiliate partnerships. The nature of their products has given them a strong presence in the BBQ industry, which a marketing savvy buyer could continue to expand post-purchase.
3. Growing Demand. The nitrile gloves industry is seeing increased demand across various industries, such as healthcare, food processing, pharmaceuticals, automotive, and manufacturing. These sectors require sturdy, high-quality gloves to preserve the safety of their workers, providing the company with a sizable audience to target with their products.
Scale Opportunities
There are several notable scale opportunities available to this brand that the right buyer could implement. They could start by expanding their Amazon presence with a modified pricing strategy to generate stronger sales through the channel, as lowering margins led to over $4,000+ per day in sales at peak in the past.
They could also target national chains in restaurants, hotels, casinos, and automotive industries by offering rebates and incentives for large accounts. This would drive B2B growth for their Shopify account for even stronger sales.
Finally, the brand has strong subscription model potential. As their gloves are meant to be used and thrown away soon after, a subscription model would allow customers to enjoy a steady stream of new gloves while providing the brand with a source of recurring revenue.
Conclusion
This acquisition is an excellent pick for a buyer with the right marketing knowledge and Amazon expertise. They are low-maintenance while enjoying high-margins, and have the potential to develop into a larger, widely recognized provider of nitrile gloves.
