Website Closers® presents an SBA Pre-Qualified Consumer Products Goods business in the Arts & Crafts and Office Supplies Categories. All products are manufactured directly for the business, based on their own in-house designs. The company offers 60+ branded products in their catalog, selling both to consumers via Amazon FBA as well as wholesale to various retailers, including TJMaxx and Hobby Lobby. After 8 years of growth, the company is still growing, which in turn is attracting an increasing percentage of wholesale accounts as brand awareness continues to expand.
This is an SBA Pre-Qualified business. Therefore, Qualified Buyers have the opportunity to borrow up to $5 Million to finance this transaction, amortized over 10 years at highly competitive interest rates. This in turn provides an ROI opportunity of the initial investment within the first 12-18 months.
With the market for Office Supplies and crafting activities remaining evergreen in nature, the company is enjoying rising year over year growth, including 39% YOY revenue growth and a huge 62% YOY profit growth. At an Average Order Value of $45, the company’s DTC sales remain steady throughout the year on Amazon where they have a commanding position in their relevant categories. Their trademarked products enjoy a spike in sales during the Back To School sales period in late summer, while holidays and special occasions such as Halloween and Christmas also bring out a healthy surge in sales.
The company has found Amazon FBA to be the ideal platform for connecting with consumers in this niche space, and at the same time, leading retailers have been setting up B2B accounts with the brand. The Wholesale Channel now represents 40% of the company’s revenue. The company’s chalk markers and gel pens do particularly well on store shelves at these high traffic retailers.
Both the company’s eCommerce and Wholesale Accounts have demonstrated substantial growth for this 8-year-old CPG brand, thanks in part to the popularity of their top selling products on the Amazon platform, where the brand name has become synonymous with premium quality chalk markers, chalkboards, gel pens and more. Their products, company name and logo are trademarked in the US, Canada, the EU, the UK and China. The company has 5 new SKUs ready to be launched in the spring of 2025, which will help to feed the growth machine for the buyer throughout the year.
Business Broker Takeaway
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. Loyal Customers. The company has an enthusiastic customer base among women between the ages of 18-50 who share a passion for crafting, decorating, and anything related to design work. Their customers appreciate new products that help keep them organized, such as writing instruments and stationery. These customers also love shopping on Amazon and have found the company’s products through use of PPC ads on the site. With 60% of their revenue coming from Amazon, customers like what they’re getting and have given the company a 4.5-star average product rating, a 100% Positive Seller Rating, and a 30% market share in chalk markers.
2. Growth Potential. It won’t be difficult for a new owner to find growth opportunities for this business. With 4,500 contacts in their email database, the company has untapped potential in an email marketing campaign that would be ideal for boosting upsells, advertising new products, and special discounts. Boosting their social media campaigns is another clear option.
That could include doing video marketing on platforms such as TikTok and starting partnerships and collaborations with popular social influencers to help build brand recognition. With their strong platform on Amazon, this company is ideally positioned for a strong international expansion using Amazon’s foreign platforms. Another significant opportunity would be to hire sales staff or a representative group to market their B2B wholesale channels, while expanding their catalog to include new SKUs that appeal to a wider customer base.
3. Strong Marketing. While the company has run PPC ads to put their Amazon Storefront in front of new customers, their social media strategy has done the same. The company has drawn sizable followings among top social media platforms, including Instagram with 8,607 followers, TikTok with 7,568 followers, and an additional 1,200+ followers on Facebook. The company posts weekly to keep those followers engaged. In addition, the company also utilizes sponsored products ads, display ads and video ads, with a unique sales strategy launched for their best-selling seasons. They also run promotional ads for special sales such as Prime Day. The company has also worked with an SEO agency to ensure their website is ranking in Google Search for top keywords in this vertical.
The Company
First launched in 2017, the company now has strong sales channels and a trusted relationship with its supplier, which manufactures the company’s private label products. A new owner will also get the company’s experienced team that now oversees daily operations, including a full-time warehouse manager, part-time warehouse workers, a supply chain manager, a virtual assistant and a contractor who handles accounting.
The company has built a successful business and brand name, and their rising sales on Amazon, growing B2B accounts and rapidly increasing year over year profits attest to that. What the business needs now is a shrewd investor ready to boost the company’s growth at an even faster rate.
This business represents a clear opportunity for a U.S. Buyer to acquire this company and scale it quickly by launching new products such as presentation boards and acrylic markers, expanding their sales channels to include platforms such as TikTok, Wayfair, Flip and Newegg, expanding their social media marketing campaign, and launching sales globally using Amazon’s foreign platforms.
This Company is Represented by:
WebsiteClosers.com
Technology, Internet & eCommerce Business Brokers
WC 3570