2Website Closers® presents an opportunity to acquire an eCommerce Brand operating within the booming Arts & Crafting Supplies Vertical, marketing their own trademarked line of art supplies, including pigments, glitters and epoxy resin that provide vibrant colors for a host of unique uses.
Sales Channels & Growth
The company has found a thriving place on Amazon, where they earned a No. 1 Best Seller’s Badge in their product category, and with that success continuing to flourish, they are now adding to their sales profile via eBay, Etsy, Walmart, Faire and their Shopify website. Their growth owes a lot to having a very targeted audience and products that these customers want. The fact that their products have their own brand identity and are manufactured specifically for them has given this company a strong reputation among crafters.
At the same time, the company has tremendous scale opportunities. Mica powder is used in other applications, including in creating soaps, cosmetics and beauty supplies. The company has the opportunity to grow rapidly by forming strategic partnerships with retailers that need this powder for creating lines of cosmetics and other beauty products, enabling the brand to expand rapidly into wholesale, beyond its current DTC sales channels.
This is an enormously lucrative field. Since the pandemic lockdowns, the Global Arts & Crafts Supplies Market has soared to $40 billion in value and is now growing by 8%, while one of the fast-rising segments of this vertical is the heightened demand for Mica powder, a mineral that provides users with radiant colors. This company has demonstrated how popular the powder is among the millions committed to crafting and artistic endeavors; could a buyer be the one to also show how many manufacturers want this substance for other products?
The scale opportunities are enormous, due to the company’s strong recurring revenues and excellent reputation within the crafting community. These qualities make it ideal for establishing new, enduring partnerships within the crafting industry, candle and soap making, cosmetics, and numerous other manufacturing sectors.
The company
Launched in 2018, this company has grown rapidly from humble origins in a small California apartment. Their first Mica powder products were launched in 2019 and quickly became the perfect niche product, since there was high demand for it and low competition.
Their decision to target the Arts & Crafting community through social media proved to be a smart one, as they quickly became a top seller on their Amazon platform, attracting more than 11,000+ positive reviews over the past five years, and now enjoying 20% net profit margins.
With an Average Order Value of $21, gross revenues have soared close to $3 million as the company has continued to expand their product line for products that are fully trademarked in the US, Canada, and EU.
Part of their success is due to the fact that their products appeal to both women and men across a wide age span, with buyers from age 16 to 65 purchasing their SKUs. They appeal to both college graduates (43% of buyers) and high school graduates (35%), strong demographics that have kept their products selling year-round, with no seasonal factors to their sales.
Their customers have raved about the vibrant colors their products provide them, and the positive feelings they get from using them. The Arts & Crafts supplies market has become a particularly vibrant one on eCommerce sites.
Operations
While Amazon continues to represent more than 90% of sales, the company is demonstrating increased appeal on other platforms. Daily tasks are managed so efficiently that this is now a turnkey operation, one that requires no special skills on the part of the new owner.
The company stocks its inventory, typically maintaining $500,000 worth of products to keep up with sales. All orders, regardless of the eCommerce platform, are sent from their 1,000 square foot warehouse. The majority of orders are shipped through Fulfillment By Amazon.
New inventory is ordered monthly, and the company successfully created its own packaging in response to market demand.
A very easy business to manage, the current ownership devotes about 20 hours per week to running it, focusing on tasks that include product development, managing suppliers and orders, supervising FBA orders and overseeing customer support.
Since the majority of their sales come through Amazon, the company works with a contractor who serves as their Amazon account manager.
For a buyer, the only important thing to learn is what drives sales for e-commerce markets of arts, crafts, cosmetics, soaps and others.
Marketing
The company built up nearly 2,000+ followers on Instagram, enabling them to bring their SKUs directly to crafters and artists using this and other social media sites. Social media continues to drive organic traffic to their Amazon shop and their Shopify website, with the company enjoying an average of 125,000+ unique monthly visitors. The company also generates organic traffic through an informational blog on their website.
With Amazon being their top sales platform, their main marketing tool has been running PPC ads on that platform, which has helped enhance the visibility of their products within their category, where they remain a No. 1 best seller.
The company is now planning a significant shift in their marketing, directing it toward establishing B2B and wholesale collaborations with companies that use Mica powder, pigments, and epoxy resin as raw material for the products they manufacture. This company has the ability to partner with thousands of retail outlets nationwide that sell arts craft supplies, as well as other items that use pigments and epoxy resin during the manufacturing process – a massive opportunity to send this brand’s profits skyrocketing.
The Arts & Crafting industry has been booming since the pandemic lockdowns prompted millions to get into this field as a hobby, pastime, or full-time occupation, generating heavy demand for supplies and accessories that bolster their crafting. This company has enjoyed soaring profits for products that are easy to effectively market by tapping into the creative community that is so active on social media.
The company is already growing at a rapid pace, providing a buyer with an opportunity to acquire a highly profitable operation and expand it quickly in new directions.
The growth of the global mica powder, pigments, and epoxy resin market has been particularly beneficial for eCommerce companies, and this brand benefits from strong recurring revenues, an expanding and loyal customer base, glowing reviews, and multiple sales channels that are connecting with buyers. For an investor, this is a colorful opportunity indeed.
