WebsiteClosers® presents an eCommerce Brand that has been a dream for weary travelers since their inception. Based in the Travel Accessories industry, they offer a line of products meant to enhance the travel experience. Outside of their flagship neck pillow, which is a “traveler’s must-have” for its dedicated following, they sell sleep masks, earplugs, and anti-theft bags.
The high quality of their products has led to $15 million in revenue and $2 million in profit within their first 2 years. They sell through Amazon and Shopify, with an AOV of $40 on the former and $60 on the latter. During peak travel seasons, their Repeat Purchase Rate rises to 20%, highlighting their strong customer loyalty and demand.
Business Broker Takeaways
1. Premium Market Positioning. The brand’s quality products have led to rapid success in their market, providing them with strong financials and 65%+ gross margins. They have protected their brand from competitors and further distinguished themselves with a registered US trademark, and they currently have pending design patents for some of their unique product features.
The brand also maintains exclusive supplier relationships with 5 manufacturers, which ensures stable and pricing and quality. These relationships are transferable to the new owner.
2. Diverse Marketing. The brand markets their products across multiple channels, including social media, Google and Amazon Ads, organic search, influencer partnerships, and TV promotions. They worked with an SEO agency for months to optimize their website to increase their search rankings, and target the 337,901 subscribers in their database with an email marketing campaign.
3. Scalable Operations. The brand’s operations are streamlined, with current ownership spending an hour every day, or even every week, checking in on their team. They then spend 3 to 4 hours per day handling optional tasks like new products and retail deals. The seller is willing to guide the buyer through operations with long-term assistant support if necessary.
Operations are handled by their remote team, which includes 2 customer support agents, 2 video editors, an Amazon management agent, and a creative strategist.
Scale Opportunities
There are multiple ways to bolster this brand’s already strong market presence. By establishing partnerships with retail stores and airport shops, they could make their products more easily accessible to their target audience.
They could also launch a TikTok Shop to utilize the platform’s virality, optimize their checkout funnels to make the shopping process easier, and expand their Amazon storefront. Additional investment in their Amazon platform would also allow them to strengthen their Amazon Canada/Germany channels, adding to their international revenue.
The company could also release new products like kids’ pillows or other travel essentials, and potentially add sleeping supplements to their roster. Sleeping supplements would also offer the opportunity to implement a subscription model for stronger recurring profits. From there, they could promote these new products with additional ad channels, such as Taboola/Outbrain.
Conclusion
This acquisition provides the chance to pilot a thriving company that has built a unique brand identity in their market. Their exclusive supplier relationships, efficient operations, and multiple scale opportunities will provide a buyer with plenty of material to grow their profits and reputation, allowing them to soar higher than ever before.
