Website Closers® presents an eCommerce business that discovered a tremendously profitable platform on Amazon and Shopify for selling its unique and proprietary brand of Folding Sunglasses.
This company made some smart decisions early on, monitoring what the top-selling sunglasses brands were doing in their marketing efforts and product development, then creating a brand of folding sunglasses. The products are marketed on both the company’s Amazon platform and their own Shopify website, with the bulk of the sales – 60% – on Amazon. This has turned out to be the ideal option for the company since their sales are strong year-round and their average customer rating is a high 4.5.
The company’s products are privately labeled with an in-house brand that is also designed in-house. All manufacturing is proprietary to them. The brand is also fully trademarked. Their products have drawn high praise from customers for their look and feel and have fueled a rapidly growing Repeat Customer Rate of 19%. After five years in operation, the company has established a strong track record for successfully marketing its products and for building a solid and healthy customer base. That puts this company on just the right footing for a rapid expansion.
A promising path to scale would almost certainly start with an expansion of their SKUs. By creating folding versions of popular sunglass styles, the company can ingeniously create something similar to what was performing most profitably among consumers, while also offering a product that customers couldn’t find elsewhere in a foldable version. Sales have been strong on their proprietary folding sunglasses that fit easily in the customer’s pocket, and with an average order value of $70, the company has been able to expand to multiple options of sunglasses, including a multitude of lens options.
The company has performed well on Amazon; they have received a large number of 4.5-5 Star reviews where customers have praised their high-quality products, fast shipping, and excellent customer service.
There is an endless number of variations the company could create from their original mold, by modifying frames, colors, and lenses. Adding to their SKUs would enable the company to take advantage of the momentum they have on Amazon and build on the success that has delivered a stunning 71% gross margin. Additional products added to their SKUs will provide this company with the ability to upsell to their existing customer base, which will also boost profitability.
Over the course of 5 years, this company has built a massive email database of 64,000+ qualified subscribers. This spanning, untapped audience can be utilized for ongoing email marketing campaigns that would include promotional deals on existing products and building up anticipation around new releases.
Their presence on social media is similarly successful. The brand has 10,200+ followers on Instagram, 9,430 followers on Facebook, and 4,620+ followers on Twitter. This audience can also be effectively optimized to drive growth and awareness. So far, this following has accounted for much of their brand development, but it could be further bolstered. To further boost sales on Amazon, the company runs sponsored ads, and this is estimated to be their biggest revenue driver. The company also runs ads on Facebook and has effectively used its email database for promotions and holiday sales. These programs are already paying dividends as the company now receives 8,000+ visits per month to their website.
There are other opportunities to scale through new marketing campaigns. One promising path to success is SEO. The brand has an SEO program that uses keywords to help build rank in Google searches, and there exists an opportunity to introduce a blog on their website to expand the customer reach. Another option would be to connect to their audience more effectively through video marketing. The company has made strong use of photos for both their products and customers wearing them and could take to the next level by posting videos on their website and on popular sites such as YouTube and TikTok. Video marketing has become one of the most effective ways to engage with customers today, and the company has already shown that they know how to make their products look as appealing as possible.
An entirely new strategy for scaling this operation would be to explore wholesale opportunities. The company has focused on the B2C market, but corporate sales offer a new avenue for growth in the future, particularly since the company is selling a proprietary brand that other retailers don’t currently have.
These products are sold in the U.S., U.K. and Canada. The products are manufactured in China by a supplier that makes these folding sunglasses exclusively for this brand. Products are stocked at the company’s warehouse and through Fulfillment By Amazon. The company is now averaging about 12 shipments a day and they reorder inventory every six months. They now stock about $75,000 worth of inventory at all times. Sales mostly remain strong throughout the year, with summer being the busiest months, followed by the holidays.
While sales are slower in January and February, the company has been able to avoid major dips in revenue due to seasonality by focusing on cities in the Southwest that remain sunny during the winter months.
The current owner is available to remain in a consulting position post-acquisition to ensure a smooth transition and build a foundation for the buyer’s ongoing growth and success.
With two successful eCommerce platforms delivering healthy sales, this is an automated company that does not require a huge time requirement on the part of a new owner. The current owner now spends just 12 hours a week running this business, done as a solo entrepreneur with no employees or contractors. Daily tasks include reviewing transactions, sending orders to the warehouse for shipping, handling customer service inquiries, and monitoring PPC ads.
This is a terrific opportunity that offers the buyer the ability to own a recognizable brand that is experiencing vibrant sales, but one that could quickly increase profitability through some simple but proven methods for growth.
