Website Closers® presents an SBA Pre-Qualified eCommerce Brand and Amazon FBA Business that enjoys the lucrative status of selling the only Branded Magnetic Collar Stays on the market. Their collar stays transform shirt collars into hidden-button-down collars, making customers’ shirt collars completely adjustable.
These stays are protected by utility and design patents, which the company has used in the past to defend their designs, cementing them as a one-of-a-kind acquisition and solidifying their brand image throughout the 18 years they have been in business.
With SBA Pre-Qualification, a buyer of this historic brand could acquire the assets for as little as 10% down, with the SBA Loan amortized over 10 years … all at industry leading interest rates. This gives a buyer the opportunity to get into this industry, learn the ropes, buy a growing eCommerce brand, and achieve an ROI on the investment in a short period of time.
The brand has smartly decided to focus in on their winning products. While they used to sell over 500 SKUs of men’s accessories, they have whittled their roster down to 25 products since 2018. They sell through their branded website, Amazon, and wholesale, with Amazon generating 80% of total sales. They have a 23% Repeat Order Rate and Average Order Value (AOV) of $44.16 on Shopify, and an AOV of $25.74 on Amazon. Their average customer is a male professional between the ages of 30 and 55 who makes over $100k every year.
Business Broker Takeaways
1. International Sales. With the help of Amazon’s international storefronts, the brand has been able to sell their products around the world. The countries they now sell in include, but aren’t limited to, the US, the UK, Canada, France, Italy, Mexico, and Germany. Their wholesale channels also mean that their products can be found in certain men’s specialty stores, higher-end gift stores, and better department stores.
2. Lightweight Workload. Current ownership has a modest workload of 6 hours per week, which they spend on overall strategy and decision making. The brand’s daily operations are primarily handled by their full-time COO, who also runs weekly meetings with all third-party vendors, customer service, and social media workers.
They also have 3 part-time workers who handle order fulfillment, bookkeeping, and graphic design & photography. Many of the brand’s other responsibilities, such as SEO, PPC, Amazon management, and content, are handled by 3rd party contractors.
3. Straightforward Stock Model. Their inventory is handled through a 100% stock model, with about 80% of volume through Amazon FBA. The remaining shipments are handled in-house; however, this can easily be transferred to a 3PL eliminating the need for warehouse space. They typically ship out about 17 shipments per day for Shopify and small store orders, and receive weekly department store orders that add another 50 to 100 shipments per week. The brand typically keeps about $200k to $250k of inventory in-stock in Venice, FL alongside stock kept in Amazon warehouses, with new orders being placed quarterly or semi-annually.
They have been working with the same factory family agent for 10 years to supply their products. This agent has proven themselves to be very reliable, and they contract source multiple factories to ensure the brand isn’t overly dependent on any specific one.
Marketing
The company’s marketing campaign relies heavily on paid advertising tactics such as Google Ads, Facebook Ads, and Amazon Ads. They also have an email marketing strategy in place that utilizes the 47,211 subscribers in their database and have started working with a company to implement SEO tactics on their storefronts. This SEO partner is currently working with them to create a blog to improve their organic sales.
Scale Opportunities
An enterprising entrepreneur could scale this brand through several key strategies. They could, for instance, boost their online profits by developing some of their international Amazon storefronts and investing in their Shopify channel. They could also grow their wholesale channel through Private Label and Custom Stays, which could appeal to customers looking for corporate gifts and promotional products.
Additionally, instead of servicing department stores, a buyer could potentially flip the brand to Private Label programs for stores and shirt brands.
The brand could bring increased attention to their products by finding a dedicated social salesperson to go after more businesses and explore possible collaborations with other brands. They could also invest more time and effort into social media for stronger organic traffic.
Conclusion
This eCommerce brand has filled a unique niche in the menswear industry for nearly 20 years and has safeguarded their position with their design patents. This is an excellent opportunity to acquire a seasoned company with exclusive products, a diverse lineup of storefronts, and plenty of room to grow with the right buyer at their helm.
