Website Closers® presents a largely absentee-owned eCommerce Brand that offers high-demand products in multiple categories. They have developed a loyal, recurring customer base in its native Ireland. Having enjoyed strong Year-over-Year Growth in the past three years, and having expanded to 550+ products in its assortment, the company has a thriving business model that could easily get replicated across the rest of Europe and in the U.S.
The opportunity can be exciting for a US-based eCommerce Brand that is looking for ways to expand into Europe. The company is not liable for a 23% VAT and is well positioned in an already English-speaking population. Plus, the company has a very large number of email subscribers and a solid social media presence that will allow a US based company to simply plug its products into their system and begin selling in days.
Having shipped 174,000+ orders in the past three years and built up a loyal customer base, the company now has a 29% Repeat Customer Rate and is getting glowing reviews from those buyers. The company also benefits from exclusive relationships with its top-tier suppliers, who are providing them with popular items in categories that include home essentials, kitchenware, garden tools, beauty and cosmetics, electronics, and outdoor & adventure gear. The products sell for an Average Order Value of $39.
The company has developed a Subscription Club that is ready to launch, giving customers access to products at discounted rates. This Subscription Club is expected to boost upsells to its existing customer base and guarantee steady recurring revenues while also enhancing customer loyalty.
The company has been able to capitalize on significant growth in the Irish eCommerce market, now projected to increase by 10% through 2028, when revenue will reach $11.3 billion. The absence of an Amazon marketplace in Ireland has opened up major opportunities for domestic eCommerce businesses to market products in high-demand categories without the need to pay import duties or extra fees. With a strong track record in the country and enough SKUs to satisfy public demand, the company is well positioned to continue growing in the Irish eCommerce market – and to expand well beyond the country’s borders.
This business represents a clear opportunity for a U.S. Buyer to acquire this company and then scale it quickly by launching an international expansion that replicates the company’s successful formula in other European nations, and in the U.S. The company could also continue launching new products to improve upsells and attract a wider customer demographic.
Value Propositions
Our analysis of this business shows that the value propositions present are strong for a first-time buyer looking to get into the online space. We are excited about this business for 3 important reasons:
1. Customer-Centric Approach. The brand’s customer-centric approach has become the true heart of this business, and one of its biggest selling points. By working to understand what kind of products their customers want, the company now has the ability to adapt quickly to market trends and consumer preferences. By locating products across multiple best-selling categories, the company has become a trusted and reliable store for Irish consumers. Their website is user-friendly and provides buyers with a seamless shopping experience, and they maintain a dedicated customer support team, giving them high ratings for quickly meeting the needs of each buyer.
2. Excellent Supplier Relationships. The brand maintains exclusive relationships with its suppliers, which include special terms and priority access to top vendors for their SKUs. This has enabled the company to grow its catalog substantially and offer customers a much wider selection of goods than competitors, while also ensuring they do not run out of bestselling items and can continue to offer customers competitive prices. The company maintains a unique operation that is now highly automated, requiring the current owner to work no more than 10 hours per week managing the business. The company now runs smoothly with minimal owner involvement, ideal for a buyer eager to scale the operation.
3. Vibrant Marketing Plan. The new owner gets a very successful marketing system that was designed to optimize efficiency — and profits. That includes an email database with 141,000+ engaged subscribers who have helped raise the company’s Repeat Customer Rate and given this business a $46 average Lifetime Customer Value. Using targeted email campaigns sent out three times a week, the company now has a 50% open rate, and this campaign has led to repeat purchases thanks to their tailored content and special offers. The company also runs PPC ads on Facebook, Instagram, and Google, and engages in SMS text messaging to reach customers. Along with a blog on the company’s website, this has given the brand 171,400+ unique monthly visitors.
The Products
Launched 3 years ago, the company has grown very quickly, providing SKUs it knows customers want. While their focus has been on popular niche categories, their strong vendor relationships mean the company can source virtually any product, since they have the flexibility to expand into additional categories based on new trends or shifting market demands.
Among their 500+ SKUs, the company has multiple bestsellers and is not reliant on a few products to generate sales. In fact, their top-selling item represents just 3.6% of their profits.
Sales remain vibrant throughout the year, and peak around the holidays. The company is now developing a system to offer products that are in high demand at different seasons throughout the year to ensure solid recurring revenues. The company’s new subscription model is expected to do the same.
Operations
The company uses a Dropshipping model so they do not need to maintain inventory, and the business can be operated remotely from anywhere in the world.
The Dropshipping model has ensured fast shipping times and competitive pricing, which is also helping to boost the company’s Repeat Customer Rate.
This operational flexibility has enabled the business to be managed remotely with minimal input on a daily basis, ideal for an investor looking for a profitable online business that doesn’t require a lot of oversight. The current owner, who works just 10 hours per week on the business, is assisted by a team of fully trained remote freelancers who oversee customer service, daily operations, and other tasks.
The company’s formula for success in Ireland has been refined and perfected, and the company now enjoys the full benefits of a loyal customer base, rising sales, and an efficient operation that brings them repeat buys. Now the business needs an investor eager to replicate this formula across other nations.
