Website Closers® presents a dynamic eCommerce Brand specializing in creating and promoting its own brand of Kitchen Gadgets that are not only aesthetically pleasing, but also built to make cooking easier and more enjoyable. The company offers a number of products in the Kitchen & Dining Categories from its Website and various marketplaces.
Operations
The owner regularly reviews the SKU selection and adds new products that fit the target audience’s needs and preferences. The company has around 150 products listed for sale on its Website and has increased its average order value from $57 to $75 over the past year. The branding of the company is very well done, and the website layout is sleek and modern. UI/UX was certainly taken into consideration in the development of this website.
All products are sold under the brand name, which is trademarked and highly scalable. The products are carefully selected and tested to determine their potential for success. Products are sourced from an Asian supplier, with whom the owner has worked for approximately 4 years. They have established a strong relationship, and the company fulfills all orders, negating the need for a warehouse or 3PL.
Once a product has been selected based on customer demand and trends in the market, it is purchased upfront from the supplier. This allows the brand to ensure faster shipping times, an important aspect of the business. Overall, management strives to maintain high standards of quality and reliability throughout the sourcing process.
A combination of stock and DropShipping inventory models are utilized. After testing and validating a product as a winner, inventory is purchased and kept on hand. Products that are in the testing stage are DropShipped, enabling the company to test the market with minimal upfront investment. The percentage of sales fulfilled through stock inventory versus DropShipping varies. However, management strives to maintain a balance between the two models to optimize business operations and ensure they can provide the best customer experience possible.
An inventory level of approximately $10,000 in cost value is maintained for today’s sales volume. The owner carefully manages inventory levels to ensure that there is sufficient stock to fulfill orders promptly without tying up excess capital.
Orders are dispatched daily from the supplier’s warehouse in Asia. They have a US warehouse; however, management has yet to pursue using it because deliveries have been consistently fast and effective.
The digital marketing strategy is straightforward yet highly effective. Sales are driven by Instagram influencers and, more recently, Facebook ads which now account for 20% of sales.
The business experiences little seasonality considering the evergreen nature of its product line. However, it enjoys some peaks during major holidays such as Black Friday, Cyber Monday, Christmas, and New Year’s Day.
Human Capital
This is a very easy business to run, requiring very little time or effort at current sales levels. The current owner is an owner-operator, enduring a light workload of 2 to 5 hours daily. His primary focus is running ads, conducting product research, overseeing the virtual assistant, handling order fulfillment, and managing other operational aspects of the business.
The only staff member is a virtual assistant who works 4 to 6 hours daily, helping with customer service, etc.
Expansion
The brand has experienced remarkable growth and profitability, establishing itself as a formidable player in its vertical. Still, the owner has identified key strategies to fuel continued expansion.
Expanding beyond Instagram influencers and venturing into Facebook advertising has been a game-changer and has demonstrated a strong return on ad spend. This indicates likely success by exploring new avenues for customer acquisition. Utilizing platforms like TikTok will enable the business to tap into a wider audience, strengthen its presence, and drive significant growth by increasing the advertising budget.
Enhancing email and SMS marketing presents a golden opportunity to nurture customer relationships and drive repeat purchases. With a database of over 30,000 customers, targeted campaigns can be implemented, delivering personalized messages, exclusive offers, and tailored recommendations. By staying top of mind through engaging communication, the company can increase customer retention, acquire new customers cost-effectively, and solidify its position as a customer-centric brand.
Finally, implementing Google Ads will give the brand access to a vast pool of prospective buyers actively searching for relevant products. By crafting compelling ad campaigns and leveraging relevant keywords, it can connect with these consumers, driving targeted traffic and expanding its customer base.
No special skills are required to operate and grow the business, and the existing owner is motivated to provide extensive training during the transfer process.
