Website Closers® presents a flourishing eCommerce business in the evergreen field of Bar Supplies. Riding the wave of restaurant and bar reopenings, this company is well on its way to explosive growth. Successfully marketing within the popular home and commercial kitchen space, this company carries a lucrative following in both the B2B and B2C spaces. This industry is projected to reach $242.5 billion by 2023, a 6.5% growth rate. This brand, however, has a very specialized niche in not only supplies for the home, but also bars and restaurants.
Operating on both their Shopify website and on Amazon, this brand has developed a trademarked product line of 25 SKUs. Founded five years ago, the two owners purchased this business, which initially had 38 SKUs. They carefully researched each product to see which ones had the strongest sales value, then reduced the product line to the 25 highest value SKUs. The company’s name has become a registered trademark and while all products are sourced from Asia, several of their quality crafted bar accessories are manufactured specifically for this brand.
With an average order value of $24, sales were solid in 2020, even during the lockdowns of many restaurants and bars. The company has some top selling items, particularly their wine glass polishing cloth, a unique item that very few competitors are selling. Other best sellers include their Trendy Bartender Shot Glass Set with 6 glasses, the Store and Pour Juice Containers, and the Bar Caddy with six containers.
While the company has its own Shopify website, most sales are from Amazon, where their SKUs are sold via Prime and where customer feedback has been exceptionally positive, with an average Seller Rating of 4.9 based on more than 2,300+ reviews.
The brand markets their products to individual consumers as gifts or the perfect item for a cocktail party or special gathering with family or friends. However, they have also attracted 5 Star reviews from restaurant and bar owners praising how effectively their polishing cloths work on thin Crystal wine glasses. The company also takes advantage of Amazon’s Subscribe and Save function.
While sales remain steady throughout the year, the brand enjoys increases in sales over the summer months as people plan outdoor gatherings with friends, and during the holidays. The Christmas season has become a time when sales peak, as their SKUs become top gift items for consumers.
40% of their current stock is stored and fulfilled by Amazon FBA. They benefit from a strong and tested relationship with their supplier in China and employ a sourcing agent who inspects all items before being shipped by the manufacturer. They place orders twice a year with their agent in China.
Over the past few years, the company has developed a highly efficient approach to marketing that starts with running PPC ads on Amazon. They also make daily posts on their Amazon page to drive customer interest and continue building brand awareness.
The brand has 600 subscribers in their email database and frequently sends out promotional emails to those names.
The brand also benefits from an active presence on social media. They now enjoy 4,770+ followers on Instagram, 3,290+ followers on Twitter, and 745+ followers on Facebook. The brand has been especially active in using Instagram to post photos of their bar accessories in the settings where they get used. This has been crucial for driving organic traffic to their website and enlarging the customer base.
Lastly, the company has an SEO program that includes a blog on their website that focuses on how their SKUs are used and trends in the bar scene.
Taking new approaches to marketing represents one of the clearest ways to scale this successful business. One proven method would be to build up the company’s email list by offering giveaways, contests, and other promotional tactics. As the number of email subscribers continues to grow, the company could then launch a more aggressive email marketing campaign.
A second option is to take advantage of Amazon’s Virtual Bundles to combine several products to be sold as one, making these items more attractive to customers for the possibility of achieving savings via bundling.
The company could also use Amazon’s foreign platforms to expand sales internationally. Right now, the company sells only in the U.S., although they have opened accounts in the UK, France, Germany, Italy, and Spain. These accounts are on hold at the moment but could be activated, with use of PCC ads to help promote their SKUs to an overseas market.
The company could expand its social media approach to launch an influencer marketing campaign that secures endorsements and product placements from influencers, people and organizations considered experts in this field. This approach has been demonstrated time and again to impact the buying habits and actions of other social media users based on the influencers’ established credibility.
Finally, a new owner could certainly focus on driving traffic to the Shopify site, which is now underutilized, such as by running PPC ads on Google and posting more blogs on the site to boost organic traffic.
This is not a business that requires a huge time commitment on the part of a buyer. The current owners spend about 20 hours per week running this business. Their daily tasks include monitoring inventory levels and customer inquiries (which average about one per day), and PPC campaigns. Their weekly tasks include general administrative work, marketing, and postings on Amazon and Instagram.
The owners operate this business themselves and have no employees, except for the sourcing agent in China. The company’s general operations are run so smoothly that this is a business that could be run from a laptop in a café that has a Wi-Fi connection.
Meticulous research and careful product selection has enabled this business to market products that are known to attract brisk sales, and they have successfully marketed their own functional and affordable bar tools and wine accessories for home and professional use. Their mix of paid and organic search has given the brand steady B2C and B2B sales, and this company stands poised for tremendous growth as literally millions of restaurants and bars across the country reopen to full capacity and customers accustomed to social distancing suddenly have the freedom to head back to their favorite spots.
A more aggressive approach to marketing their SKUs should result in a sharp increase in sales and position this brand to become a leader in this attractive niche.
This eCommerce Brand Represented by:
Tech & Internet Business Brokers
Listing ID: WC2354
Website Design by Lounge Lizard