Website Closers® presents an eCommerce Company with over thirty years of industry experience in the arts and crafts niche. During that time, they have skillfully evolved with market trends and expanded sales from a website to Amazon and Etsy, where the brand boasts outstanding reviews and a 5-star average rating.
The business now boasts over 1,000 popular SKUs, many of which are manufactured exclusively for it, that appeal to hobbyists, professionals, and educational institutions alike. This has diversified revenue between D2C customers and a growing B2B arm that holds immense scale potential.
Management has astutely incorporated educational content via a well-read blog and instructional videos to boost engagement by assisting customers on their journeys of making dolls, beaded necklaces, and other unique projects.
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:
- Devoted Customer Base: Many of the brand’s products are exclusive and unavailable in brick-and-mortar stores, which has driven its appeal and helped it stand out in the market. More importantly, management has capitalized on this value proposition by boosting margins on its exclusive range while offering an extensive selection of more economical alternatives in various colors and styles.
- Straightforward Operations: The owner has systemized operations extensively and astutely leveraged Amazon and Etsy’s logistical prowess to facilitate fulfilling up to 100 daily orders. Only two part-time employees are necessary to assist with daily functions, while the owner endures a moderate workload of approximately 25 hours weekly. A buyer can reduce their time commitment further by employing virtual assistants to perform many day-to-day tasks.
- Multiple Sales Channels: With sales diversified across the company website, Amazon, and Etsy, the risk of reliance on any given platform is significantly negated. Across all channels, the brand achieves a $65 Average Order Value at healthy margins. There is vast potential in expanding channels to include Walmart, Target, and eBay to reach a broader audience and boost revenue dramatically. Additionally, minimal paid marketing is performed, presenting a buyer possessing digital marketing expertise with the opportunity to scale the business swiftly.
Customer Acquisition
Despite performing minimal paid advertising, the brand has consistently exhibited a strong financial performance, demonstrating its appeal in the market and outstanding customer satisfaction. The marketing that is performed is effective and comprises various organic efforts:
Email campaigns are frequently sent to a database of devoted customers and boost retention, sales, and brand engagement. More recently, an affiliate program with prominent influencers has proven lucrative and is worth expanding. SEO on the company’s website and blog drives organic search engine traffic, and modest social media efforts now attract an additional 40,000 monthly visitors.
Scale Opportunities
Aside from allocating an advertising budget to boost sales, a buyer can explore various avenues to grow the business.
Refining email marketing campaigns is a cost-effective method to increase the repeat purchase rate by promoting specials, offering discounts, and keeping the brand front of mind for customers. Expanding the product line is low-hanging fruit and can be marketed similarly, encouraging higher cart values at checkout.
Introducing new SKUs in adjacent verticals would not only entice a new prospective customer base but also facilitate increasing the average order value by cross-selling to the loyal existing customer base.
Collaborations with prominent crafting organizations could further enhance the brand’s credibility and perception as an authority in its niche. Additionally, launching video marketing across social media channels is ideally suited to these types of products.
Products, Sales, & Customer Base
Over the past 30 years, this brand has become synonymous with quality, innovation, and excellent customer service. Subsequently, it has become a significant resource for D2C and B2B clients, including DIY enthusiasts of all levels, professional artists seeking high-quality and exclusive fabrics, and various institutions such as schools, museums, and libraries. Various exclusive lines have also attracted the attention of popular social media influencers with whom the brand is now collaborating.
The company’s website drives sales, accounting for 65% of revenue. However, Amazon and Etsy are thriving and contribute 20% and 10% toward the top line, respectively. The remainder is derived from high-volume orders. Management astutely implemented a 30-day invoicing plan, which has attracted B2B clients and is steadily growing.
Products remain popular throughout the year since the customer base is so broad. Sales to schools and organizations iron out fluctuations from individual shoppers, who are most active during holidays and between September and March. The typical D2C customer is a female between 35 and 65 in the middle to upper-income bracket. She is passionate about creative DIY projects and seeks premium materials and products.
The groundwork has been laid for a motivated owner to grow the company to new heights by injecting enthusiasm, innovation, and marketing efforts into this established operation.
