Website closers® presents an eCommerce brand that sells a wide range of Copper-Infused Compression Gear. The company’s unique selling proposition against competing brands and items is that its textiles are infused with the highest copper ions content available on the market. Unlike less effective products, these garments contain true copper ions (Cu+, Cu++) rather than copper oxide (Cu2O).
It is believed that damaged nerves trap electricity in the body, causing pain, burning, redness, loss of appetite, insomnia, headaches, and more. Copper helps pull that electricity away from the body to relieve pain and allow healing.
Compression sleeves, socks, braces, and splints are particularly popular items in the company’s growing product catalog and are all made of or lined with copper-infused textiles. The brand markets 11 established and 14 new products. In addition, 4 or more new products are brought to market each quarter based on the current owner’s highly astute market research and ability to find top-selling SKUs.
Revenue channels include Amazon, the company website, and Walmart, with the following sales breakdown between platforms:
- Amazon 94%
- Website 3%
- Walmart 3%
The company’s success is based on more than just exceptional product selection. The brand promises and delivers:
- The Highest Quality Natural Copper
- The Highest Copper Content (up to 6g/kg or 6000ppm)
- A PAIN-NO-MORE Guarantee: They’re so confident with the performance of the products that customers are guaranteed to be pain-free within 30 days or get their money back.
Sourcing is a masterclass of efficiency and effectiveness. First, the owner extensively tracks what competitors in the “copper-infused” niche do and compiles a list of possible products to add to the line. Then, data mining on Amazon using Helium10 helps him rank the products based on perceived opportunity, comprising a balance of sales volume, competitiveness, and capital cost.
Data points are updated at the beginning of every quarter, and 4 to 6 of the top products are selected. From there, the brand’s Chinese sourcing team is responsible for finding the best factories for each product and ordering samples. Those samples are compared with US competitors for quality and usability, ultimately ensuring the final product is up to the highest standards and specifications, where style meets substance. Once a final product sample meets expectations, the sourcing team and factory arrange a mass production sample and order the items. Lastly, an independent contractor inspects the final creation at the factory in China, and the sourcing team takes care of all logistics to bring these to the US.
The company uses a 100% inventory stock model delivered from one of three locations. A 3PL handles website and Walmart orders, while Amazon orders are all FBA. An additional fulfillment service acts as a receiving and staging warehouse, handles long-term storage, and is used as a fallback for FBM deliveries. Around 500 orders are shipped daily.
The company enjoys healthy average order values, varying across platforms, but all with excellent margins. The AOV breaks down as follows:
- Amazon: $21.17
- Website: $32.82
- Walmart: $16.55
Given the nature of the business, seasonality is not much of a factor, making inventory management more straightforward and keeping cash flow consistent. However, there is a slight peak in sales from November to March as the peak of Q4 carries over to January and February, resulting from new year’s resolutions encouraging consumers to exercise more.
The typical customer is broken down into four core personas: The Thoughtful Wife, Older Man, Active Athlete, and Recovering Individual. The audience is 60% skewed toward married females that are 45 or older.
The owner spends just 10 hours weekly on the business, and his primary tasks include:
- Managing the team primarily by email, Skype, and Slack
- Weekly and bi-weekly review calls with contractors
- Planning for the next forecast period
- Keeping track and sharing new or recurrent to-dos with contractors
- Reviewing order forecasting and confirming new supplier orders
- Reviewing product samples and sharing feedback with the sourcing team
- Investigating growth opportunities and interviewing relevant services
- Reviewing financials and issuing payments
The business has no employees but uses contractors for the Amazon and Walmart accounts, website maintenance and social media, customer service, Google Ads, sourcing and logistics, accounting, and product inspection.
This arrangement with contractors is beneficial on multiple levels. It reduces the workload significantly, allows the most qualified parties to focus on specific aspects of the business, and frees up tremendous time for scaling the operation with big picture thinking or focusing on other pursuits.
The acquisition is ideal for a business-savvy buyer possessing good communication skills, a propensity for numbers, and a keen understanding of tech. Suppose a buyer can bring these attributes to the table. In that case, the business is already set up for growth, with a clear path ahead and tremendously skilled contractors pushing it forward on every operational side.
