Website Closers® presents an eCommerce company that has found enormous success and profitability by giving their audience what they want and need: common, high-demand everyday products that are used by millions and represent some of our most evergreen items sold year-around. Focusing on supply-related products, the company has excelled at SEO research which gives them a firm understanding of the type of items people are looking for on a regular basis, and that have lower-thanaverage competition.
It’s been a winning formula that has enabled the company to expand to more than 1,000+ active SKUs across multiple niche categories, including supplies for packaging, office use, medical care, pets, cosmetics and baby care. With a modest Average Order Value of $27, this five-year-old company has seen sales soar past $7 million in gross revenue. This has enabled them to innovate and launch six of their own branded products, giving them an even stronger edge over competitors.
Sales are focused on Amazon, gaining easy access to the millions who use that marketplace and have found their essential everyday products and rapid shipping through Fulfillment by Amazon to be an unbeatable combination.
Even more important for a prospective buyer, though, is that the company has diversified its sales channels. The company’s Shopify website now makes up a rising percentage of their sales, while investments in platforms such as eBay is starting to pay off, since they now get 8,000+ unique monthly visitors there. The company sells to both individuals and wholesalers, giving them an impressively diverse customer base. Their typical customer is either a single buyer or a small business that purchases from them.To keep their customer base on board, the company consistently launches new products in different niche categories each month.
This has been a very lucrative strategy for them. Gone are the days when eCommerce companies needed a highly specialized product that buyers couldn’t find at their local store. The phenomenal increase in online purchasing, including on mobile apps, means buyers are not just shopping for unique items anymore. Virtually every imaginable SKU, no matter how common or easy to find, is getting purchased today on sites such as Amazon and eBay. eCommerce sites can focus on items that people need, use regularly, and rely on, and find a massively receptive audience in doing so.
Some aspiring entrepreneurs may wonder how to differentiate their business and make it stand out if they’re selling ordinary items. Those entrepreneurs would be wise to read up on this company’s playbook. They set a high standard for eCommerce sites that sell multiple everyday items, demonstrated creativity in how to capture a loyal audience, and now have positioned their brand for some impressive scale opportunities moving forward.
Rather than selecting items at random, they did intensive SEO research on which products were in high demand with low availability online, then launched a wide variety of SKUs that are essential to most of us, used on a daily basis, and appeal to a large group of consumers for both DTC and B2B sales.
In the past five years, the company has seen its sales rise among owners of small and medium-sized business owners, parents, pet owners, students, grocery stores, and business professionals. Their products do so well that no single product dominates their sales. The highest performing category, PPE products, represents 35% of their sales, compared to 25% for packaging products, 20% for mailers and bags, and 10% for beauty products.
Their products are not seasonal since people use them on a regular basis. Their market is stable yearround, with a peak in sales during the fourth quarter holiday season.
They also constantly research and enter new niche verticals as they keep diversifying.
This company has contracts with its manufacturers to ensure they get the products they need on a timely basis, since they are now shipping up to 200 packages daily. They maintain inventory levels at 85% to keep up with demand, with up to $300,000+ in inventory at the FBA centers. They now have $900,000+ in inventory that comes with this sale
Their success enabled the company to launch seven brands that are manufactured specifically for them, including CBD cosmetics, baking products, beauty items, and poly mailers. These products are sold under their brand name, and to boost sales they have expanded their sales channels beyond Amazon. eBay now represents 4% of their sales, and Walmart, an additional 3%.
Their contracts with manufacturers have enabled the company to offer products at better price points than competitors since they avoid third-party suppliers.
Amazon has been crucial for them in another way. The company now has 1,000+ subscribers on their Amazon platform, who are participating in their Subscribe & Save plan. That’s not only given them steady recurring revenues throughout the year, but it’s starting to pay off in another way as the company enjoys a rising (12-15%) repeat customer rate.
The company has used different marketing strategies to reach customers, including PPC ads on Amazon, eBay and Walmart.
The company has more attractive listings than their competitors since they have effectively used video marketing on YouTube and 3d imagining to enhance the overall quality. Their products stand out visually for those customers directed to them once they begin a product search.
Their SEO program and use of popular keywords is driving more people to their website, which has enabled the company to collect email addresses in their database. They now have a database of Amazon subscribers which could be used to launch an effective email marketing campaign for new product launches, promotions and upsells.
The company also benefits from 5,100+ Instagram followers which is also expanding their customer base. Their posts on Instagram, Facebook and YouTube are used to offer exclusive access to sales and new products.
These marketing tactics are working as intended, they now get 3-3.5K unique monthly visitors to their website.
A well-automated business, the current ownership now spends as little as 15 hours per week operating it, with a focus on strategy development. The company relies on 35+ experienced contractors and freelancers to handle all daily operations, including account management, research, PPC ads, logistics, warehouse management, and office support.
While their products may be common, there’s nothing common about this company’s impressive track record.
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Tech, Internet & eCommerce Business Brokers