SBA Pre-Qualified Cybersecurity Solutions Company | 22 Years in Business | $153 AOV | Focused on Physical Security Products | Strong YOY Growth

Pending

Website Closers® presents a 22-year-old eCommerce Brand that has locked down a dedicated customer base of major installation sites like healthcare facilities, power generation facilities, oil refineries, military, and others with their line of security products. They are the sole business in their industry to offer a full lineup of physical security solutions that protect against cyber intrusion, such as USB port blockers, port locks, security screws, and network locks.

They have thousands of SKUs for sale, which have been manufactured in a TAA compliant country: a critical factor in ensuring that their products are as secure as possible. Their commitment to quality security has given the brand an Average Order Value (AOV) of $153.20 and stable year-over-year (YoY) growth. They see little seasonality outside of a brief surge at the end of each calendar year as companies look to spend money before the year is over.

97% of their sales were stored and shipped from their own warehouse in 2023, with 2.9% being handled through a DropShip model. They generally always keep about $600,000 in inventory at their warehouse.

Business Broker Takeaways

1. Strong Customer Loyalty. The brand’s in-house concentration has been dedicated to curating a positive customer experience since their launch. This has resulted in a lot of goodwill and loyalty from their client base, and an impressive Repeat Customer Rate of 73%.

Outside of their commitment to quality customer service, they strengthen their brand/buyer connection through their social media channels. They outsource their social media management to a company in South Carolina, with this company also helping them manage and host their websites. They generate daily blog posts, Facebook posts, and other content. While the brand is more active on Facebook, they also have a limited LinkedIn presence.

2. Polished Marketing. The brand has been using Google AdWords for their advertising for many years now, with it acting as their key lead generator. During the last 12 months, paid advertising represented just over 73% of their web traffic. Their campaign is complex and meticulously planned out, involving strategies that range from brand focused to driving traffic to a specific product.

They also have a SEO plan in place on their websites, with most of their focus regarding their “on page” work having to do with creating relevant content for their site visitors. They incorporate targeted keywords that they believe their customer base will be more likely to use when searching and create natural inbound links for their “off page” work to bring “link juice” to their site. These links come from news organizations and other industry related sites. These tactics have led to them seeing about 107,000 visitors within the last 30 days to their main website.

3. Simple Operations. The straightforward structure of the brand’s operations has meant that the seller generally doesn’t need to help with goods being received in or being shipped. Their 40-hour workweek is typically spent serving in an advisory role to all the other staff members, press releases, and coordinating the activities of 3rd party service providers, among several other tasks.

Their Google AdWords, YouTube optimization, Amazon advertising, blog posts, and other advertising strategies are handled by outside service providers.

Scale Opportunities

While the brand already does an excellent job at making themselves visible to those who look for them, they could target clients who do not know to look for their products. As these clients typically hire outside companies to do security assessments, the brand has a great opportunity for growth by working with these kinds of service companies.

Additionally, though the brand does sell in the US, the market is still at an earlier stage. Given that the US market is just over 15 times larger than that of South Korea, their primary region, the brand could see immense growth by investing in a properly funded marketing effort in the US.

The brand could make their products accessible to a wider audience by working with new distributors like CDW, SHI, and Insight. They could also begin working with retail stores like Hobby Lobby for stronger B2B sales, with Hobby Lobby being an early adopter of locking solutions for protecting their networks.

The brand has strong potential to target customers who have concerns about lost cable connections due to movement and vibration. These customers might work in environments like naval vessels, factories, and military vehicles, and turn to the brand to secure their USB and network cables.

Conclusion

This seasoned acquisition occupies a valuable position in the cybersecurity niche and has the potential to thrive if marketed and further expanded in the US and to certain demographics. An enterprising buyer would be the key to the brand’s future success.