eCommerce Brand in the Jewelry Niche | 17% Repeat Customers | 170,000 Monthly Uniques | Strong Operations Staff in Place | Nice Growth in the TTM

Pending

Website Closers® presents a high-growth eCommerce Brand operating in the popular jewelry niche. Its Shopify-built website offers a well-curated catalog of over 440 products without concentration on any given SKUs. The store attracts considerable traffic via robust ad click-through rates, boasts strong conversions, and has a healthy customer acquisition cost. Its $45 Average Order Value also achieves solid margins while appealing to a broad customer base

Business Broker Takeaway

Our analysis of this business shows that the value propositions present are strong for a first-time buyer looking to get into the online space. We are excited about this business for three important reasons:

1. Streamlined Procurement. The owner’s savvy strategy involves leveraging Asian online B2B platforms, which are instrumental in sourcing products directly from manufacturers. While numerous businesses in the industry often turn to platforms such as Alibaba or AliExpress, it is a common oversight not to recognize that approximately 90% of the vendors on these sites are intermediaries, further removed from the original manufacturers. By establishing direct relationships with factories, the company is able to significantly reduce the cost of its jewelry, ensuring a more efficient and profitable supply chain.
2. Broad Customer Base: The brand serves a diverse clientele, encompassing all genders across various age groups. Male customers predominantly engage with the brand during key gift-giving seasons, such as Valentine’s Day and Christmas, while sales to women remain robust throughout the year. Notably, some customers have made as many as 19 purchases over the past year, demonstrating a high level of brand loyalty. A significant segment of the customer base has made multiple purchases, ranging from 2 to 4 orders, largely influenced by the effectiveness of regular email marketing campaigns.
3. Logistical Prowess: The business stands out primarily due to its unparalleled cost efficiency and shipping and inventory management speed, drastically surpassing competitors. A partnership with a supplier in the renowned Asian jewelry hub allows the company to maintain a 30-day inventory on hand without upfront payment. Unlike typical DropShipping models that face extended shipping times due to the indirect procurement of orders from factories, this strategy enables orders to be dispatched almost instantly. Therefore, they can deliver low-cost jewelry to customers’ doors in a matter of days at costs significantly lower than local alternatives.

Marketing

Jewelry remains a perennially popular niche, experiencing notable sales increases in anticipation of major holidays such as Mother’s Day, Valentine’s Day, and the Q4 holiday season. As a result, advertising competition on social media platforms also exhibits seasonality. For instance, while January might be presumed to be a slow period due to its placement after Christmas, the reality is quite the contrary. With significantly reduced competition on social media during January, this company’s advertising efforts yield approximately 30% greater reach for the same investment, making it their most lucrative month.

The strategy currently employs Facebook and Instagram ad campaigns, achieving a consistent ROAS. Due to the substantial profit margins, net income, after accounting for all expenses, is 17%.

In addition, email marketing campaigns are conducted three times weekly, with each dispatch generating sales between $700 and $1,300.

Both strategies present vast opportunities for growth under a motivated new owner. The company has not expanded its advertising budget, introduced new creative content, or developed new email campaigns in over a year. Despite this, it has observed consistent performance with minimal oversight.

Workload & Team

Although the owner’s current workload is only around 30 minutes daily, much of it can easily be delegated to a virtual assistant if a buyer desires to reduce it further. Daily responsibilities include procuring orders from the supplier in a straightforward and automated process.

Email marketing campaigns are dispatched on Mondays, Wednesdays, and Fridays. Since they have been crafted for the entirety of 2024, the role simply involves sending out the campaign that aligns with the corresponding date.

Only two additional employees are required, both of whom work as customer support contractors

Outlook

Although no special skills are necessary for a buyer to enjoy continued success, one possessing a nuanced understanding of social media marketing and product branding is poised to experience substantial growth.

The business is in a strong financial position, providing an excellent platform for a new owner who can bring enthusiasm, innovation, and strategic vision. There’s a significant opportunity to leverage the existing cash flow to enhance branding, expand market presence, and ultimately accelerate growth.