Website Closers® presents a fast-growing eCommerce Brand operating in the Jewelry Sector. The brand offers an array of high-demand “stash necklaces” within a lucrative sub-niche with little competition. They are designed with discreet hollow components allowing the wearer to store small amounts of whatever they desire within them.
The jewelry industry is a thriving sector encompassing many products, from earrings and bracelets to rings and necklaces. In recent years, necklaces have gained significant popularity, becoming a fashion staple for many individuals. And when adding both aesthetics and utility to a piece, you’ve created demand for a staple that everybody wants.
In line with the overall growth of eCommerce, the jewelry industry has witnessed a surge in online sales. This trend is particularly notable among the company’s primary demographic of females in their twenties. With the convenience and accessibility of online shopping, consumers in this age group are increasingly turning to online platforms to explore and purchase pieces that suit their preferences and budgets.
Another influential factor in the sector is the power of celebrity and pop culture. Celebrities often set trends with their fashion choices, and jewelry is no exception. For instance, Lana Del Rey’s necklace has become iconic. It features a rosary chain with a golden heart attached, which unscrews into a little spoon. To some, it’s reminiscent of the cross-shaped necklace worn by Sarah Michelle Gellar’s character Kathryn in the 1999 movie, “Cruel Intentions.” These celebrity statements garner significant attention and immediately spark demand for similar pieces, especially on TikTok where this company’s videos get millions of views. The influence of celebrities and pop culture on jewelry trends highlights the industry’s ability to adapt and cater to evolving consumer preferences.
This company has taken advantage of these trends, and all its products are proprietary and designed in-house with computer-aided programs. Prototypes are then 3d printed and refined. Once the team is happy, the final design is sent to a prominent Asian manufacturer, which produces samples. The manufacturer does not advertise or sell the products to other buyers as per an exclusivity agreement. They are then sold under the company’s brand name on Amazon, Etsy, and a Branded Website, which operates on the Shopify Platform.
A 100% stock inventory model is utilized. At the beginning of the month, around 80% of inventory is maintained and adjusted as necessary midway through the month. This equates to between $10,000 and $15,000 at cost.
Between 20 and 50 orders are dispatched twice weekly from a 200-square-foot warehouse. A buyer could profitably use a 3PL to negate the need for a personal storage and packing facility. However, due to the products’ small size and the simplicity and speed of packing orders, the existing owner has found hiring hourly help twice a week economical.
Orders remain strong throughout the year, with notable peaks around the holiday season, from November until February.
Digital marketing efforts primarily focus on organic reach via TikTok, Instagram, Pinterest, and Google. Social media achieves an excellent ROAS while boosting sales across other platforms. At the same time, Google campaigns and Amazon PPC are also profitable.
Additional strategies include SEO via Pinterest and listing the products on high-ranking sales platforms, resulting in them being shown at the beginning of most Google searches. The culmination of these endeavors is 30,000 monthly visitors and solid conversion rates.
The business achieves a strong click-through rate of approximately 3%, a return on ad spend of between 300 and 500 percent, and a cost per action as low as $6. Furthermore, it receives an average of 200 new email and SMS subscribers monthly.
The typical customer is a female between 18 and 29 interested in niche aesthetics such as Coquette, Dollette, and Art Deco. Many are also fans of Lana del Rey and movies like Cruel Intentions.
The owner works only 8 hours weekly, focusing on shipping necklaces and replying to customer emails.
One employee works for the business and is willing to stay post-acquisition. This contractor handles all influencer and organic marketing. Duties include managing and posting daily on Instagram, Pinterest, and TikTok and identifying trends in the niche. Additionally, they work with creators in the space and create social growth strategies.
Looking ahead, the jewelry industry is projected to continue its growth trajectory. As technology advances, there are exciting possibilities for incorporating innovative designs and materials into jewelry production. Additionally, customization and personalization options are expected to become increasingly prevalent, allowing consumers to create unique and meaningful pieces that reflect their individuality. Subsequently, this business is primed for continued profitability under new stewardship.
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