Website Closers® presents a reputable 7-year-old eCommerce Brand based in the evergreen arts, crafts, activity, and office supplies market.
They sell a wide range of quality gel pens, ballpoint pens, highlighters, dry-erase markers, chalkboards and dry erase boards, and their most popular product, Premium Chalk Markers. The company offers over 60 products in total, which are all private label branded, designed in-house, and sold under their catchy and globally trademarked brand name.
They have an AOV of $45.42 on Amazon, and while they enjoy consistent sales throughout the year, their profits peak during the Back to School and holiday seasons. The company is seeing well above market year over year growth in both revenue (35%) and profit (40%), with SDE margins of over 19%.
A key factor behind their success is their careful selection of retail partners, which has allowed them to secure favorable terms and, in turn, profitable partnerships.
Business Broker Takeaways
1. Strong Channels. The brand performs nearly equally well on their D2C Amazon and B2B wholesale channels, with the first accounting for 60% of their total revenue. On Amazon, their products have a 4.5-star average product rating, and their account boasts a 100% Positive Amazon Seller Rating.
The brand also has 30% market share of Amazon chalk markers, strengthening their reputation as a top provider of art and office supplies.
2. Diverse Marketing Strategies. The brand has a thorough marketing campaign in place, bolstered by their partnership with an Amazon PPC agency. Most of their marketing dollars are spent on Amazon ads, which include sponsored product ads, display ads, video ads, and sponsored brand ads.
They supplement these ads with social media marketing on Instagram, Facebook, and TikTok. The company also has 4,500 contacts in their database, which opens the possibility of email marketing in the future.
3. Scale Potential. Even with a small, compact team, the business is seeing above market growth on both Amazon and wholesale channels. Direct to Consumer on their website is virtually untapped and they currently work with only a handful of wholesale partners, leaving a lot of white space to growth through expanded channels and partnerships. The products lend themselves well to repeat purchases, opening up massive email market and social campaign opportunities.
Scale Opportunities
The company is in a great position to capitalize on the flourishing arts and office supplies category, and the right buyer can ensure they meet their full potential. They could start by expanding their SKU line to include products such as presentation boards, pens, and acrylic markers, adding to their market appeal and targeting more potential customers.
From there, they could leverage their existing chalk marker driven brand reputation to promote these new products and improve their marketing campaign to draw further attention to all their SKUs. They could accomplish this by exploring influencer, social, and email marketing, which are strategies that are currently going untapped or underutilized.
The brand could also utilize a Shopify D2C marketing strategy and hire sales staff or a representative group for their B2B wholesale channel. They could also establish a subscription-based model, which, alongside a targeted newsletter through their email marketing, could significantly boost their Repeat Customer Rate and CLV.
Conclusion
This business has been firing on all cylinders since their 2017 launch, having successfully established themselves in a lucrative niche. Their strong product roster, memorable branding, and commitment to quality have all given them a fantastic reputation, which a buyer could use to take the brand to the next level.
