Website Closers® presents an eCommerce Brand specialized in the Men’s Jewelry Vertical. The business is growing and enjoying 85% gross margins in a massive industry experiencing increased demand from men searching for unique and stylish products. This brand is giving its customers exactly that, a line of highly fashionable pieces that have grown to 150 SKUs, crafted using premium, high-quality materials.
At a $72 Average Order Value, the brand has a growing reputation as a provider of high-quality men’s jewelry for all occasions, both durable and tarnish resistant. For a buyer, this company offers appealing advantages. Half of their sales are Dropshipped, so there is a minimal investment in inventory. The company enjoys highly enthusiastic reviews from its customers, and maintain strong social media followings on TikTok, Instagram, and Facebook. This is a turnkey operation requiring as little as two hours per week to operate.
Now close to its third year of operations, the company has grown its customer base by providing longlasting jewelry that is affordably and competitively priced, crafted with stainless steel that can’t tarnish or break and natural materials. Classy and minimalist, their line of men’s jewelry items is suitable for everything from a business meeting to a day at the beach.
Another key strength has been the company’s ability to adapt quickly to new trends, often taking as little as two weeks to bring a new concept to market. The company works with two reliable suppliers who create products specifically manufactured for them and made on demand per order. The suppliers are obligated to keep the brand’s designs confidential.
All products are sold under the company’s brand name, and include a wide variety, including snake bracelets, silver cuffs, and pearl necklaces, among many others. No single SKU dominates sales, so the company is not reliant on a few SKUs to carry sales. At least 75% of sales are for products that do not need to be stocked.
Business Broker Takeaway
Our analysis of this business revealed several key value propositions for a buyer looking for an online company operating profitably in a fast-growing and evergreen vertical and with the ability to scale quickly. We anticipate buyers will recognize that value for 3 important reasons:
- Highly Motivated Customers. While women now account for 72% of the buyers in the jewelry market, demand for men’s jewelry is growing rapidly, as a sharply increasing number of male customers use jewelry items to make a fashion statement about themselves and their lifestyle. This is an underserved market and the company wisely recognized that demand and worked hard to meet it. Their sales now come in steadily throughout the year, with peaks during the spring and summer months when customers want to look their best while outdoors. Their Repeat Customer Rate just shot up to 13% and their reviews have been excellent.
- Automated Business. The company uses software that processes real-time order management, enabling their suppliers to quickly get orders DropShipped. All orders are shipped within 24 hours in a branded packaging. This has become a turnkey operation requiring as little as two hours a week from the current ownership, which focuses on launching new products to keep up with shifting trends and checking in with the suppliers. Two employees assist with email marketing and customer service.
- Growth Opportunities. Even with nearly 150 SKUs, the company hasn’t come close to maxing out how many new product variations and sizes they can introduce, and one obvious expansion opportunity would be to create a women’s collection targeting female shoppers. The company also has a major scale opportunity by shifting to B2B sales, targeting wholesalers and retailers that market men’s jewelry. The brand is already receiving multiple requests on a monthly basis from interested retail distributors.
Marketing
Social media marketing plays a major role in the company’s profitability. The company allows its customers to, in a sense, do the marketing for them, since they repost testimonials from their buyers about the high quality of the products. Those rave reviews are particularly effective in attracting new customers.
Email marketing has also boosted sales. The company has a whopping 125,000+ subscribers in their email database and their revenue from email marketing continues to increase every month.
The company’s SEO program is helping to drive organic traffic, and it includes not just keywords used on their Shopify website, but also an educational and informative blog to attract new visitors. That organic traffic is attracting a healthy 65,000+ unique visitors to their website every month.
The brand has also run PPC ads on Facebook. Running ads on Google and using influencers on their social media accounts would also help this company grow and increase profitability.
The beauty of this company lies not just in its products and how its SKUs look on customers, but also in its ability to deliver a reliable and steady revenue stream to a buyer, one that requires minimal effort to maintain. The new owner can quickly take over and immediately begin scaling this operation since it enjoys both a strong customer base and plenty of room for growth.
The current owner is available to remain on post-acquisition and provide training to the new owner. The company’s ability to quickly capitalize on new trends should make it clear this is an innovative and potentially enormously profitable company in the long run.1
