Website Closers presents a well-established eCommerce provider of Gun Parts and Accessories that has achieved strong, 127% year over year growth. In fact, this company experienced a more than 200% net profit increase last year, based on an average order value of $95.
Sales have been exceptionally strong, on track to reach $1.5 million this year, and with the brand now receiving 37,700+ monthly visits on their website, the company has an amazing presence in an established niche. The gun industry has been a hugely profitable one, with nearly 40 million guns purchased legally in 2020 and an additional 4.1 million guns bought in January 2021 alone. This is a lucrative industry, and this company has been meeting customer demand for specialized gun accessories for close to a decade. That has given them a large email database of 35,000+, which demonstrates just how widespread their audience is. The company has been impressively averaging 155% year over year volume growth.
That stunning success positions this company for rapid scale opportunities, starting with launching of the brand’s first digital marketing campaign. The company has relied on organic search traffic on Google, and that opens up tremendous growth options through modern digital marketing techniques such as an SEO program and blog on the website, an aggressive email marketing campaign, and expansion into social media marketing. The brand could also market directly to a growing segment of the firearms-buying community, which is women. Research indicates that women are a rising percentage of gun owners in this country.
There is also an opportunity to significantly increase sales by adding more products from brands this company already carries, while also expanding into entirely new brands to diversify its customer base.
The company was formed in 2014 to market firearm parts and accessories, primarily magazines and custom gun building parts. Their SKUs have built up to 119. The business quickly attracted a solid customer base, particularly among men between the ages of 30 and 60. With an average order value of $95, sales quickly became steady throughout the year. Typically, there’s an uptick around the holidays, or when guns become a political issue in news cycles.
The brand was boosted by the fact that the firearms parts and accessories market has been experiencing significant growth in recent years. The brand sells entirely on its website and has the advantage of not having to compete against major eCommerce sites like Amazon, which doesn’t allow most firearm parts and accessories to be sold on their marketplaces. That helped this brand achieve a more than 200% net profit increase in 2020.
The company ships from its own warehouse, sending out 30-50 shipments each day, and they typically stock at least $20,000 worth of inventory at all times, which can rise as high as $75,000 during peak sales periods.
One of the biggest opportunities for growth would be to employ a sophisticated digital marketing campaign. The company has a massive email database of 35,000+ addresses but has only rarely done email marketing campaigns. The brand has also never developed an SEO program focused on keyword research, a blog on the website, or social media accounts to boost organic traffic. Even without doing this, the company still gets more than 37,700+ visitors each month to the website. Clearly, those numbers could skyrocket with a more advanced digital approach aimed at broadening the customer base.
There is also room for exponential growth by expanding inventory and introducing more products from the brands they now purchase from, or by introducing entirely new items not frequently carried in the parts market.
The company could also use digital marketing to advertise directly to women. The days when men made up virtually all gun sales are over, and women are increasingly a crucial part of the gun buying customer base. While the brand has traditionally found that most of its customers are men, directly advertising to women could increase profits tremendously.
The current owner now spends about 40 hours per week running this business, which can increase to 50 hours during the busiest seasons. Primary tasks include purchasing inventory, fulfilling orders, and responding to customer inquiries, and they average about 5-10 contacts each day. The company does not have any employees.
No special skills are needed to run this business, although having a basic understanding of firearms and the firearms parts and accessories industry would be beneficial. A buyer should also consider learning how to research and monitor law changes at the state and national level and to monitor the industry for new product developments.
This is a business generating remarkably high revenues in an industry that remains highly profitable and growing. What is particularly remarkable about this brand is how successfully they connected with their customer base with such a limited marketing campaign.
There’s no question that this company is now poised for massive growth simply by implementing proven digital marketing techniques such as SEO, social media posts and email campaigns. Diversifying the product line and marketing directly to women consumers could also be major game changers.
As gun sales continue to soar in 2021, the parts and accessories field will benefit enormously, and so will the buyer of this business.
This eCommerce Retailer Represented by:
Technology & Internet Business Brokers
Listing ID: WC2308