WebsiteClosers® presents an SBA Pre-Qualified eCommerce Brand that has had many customers strap in for the long haul. They have excelled in the watch strap market, with their straps being especially popular among high-income women. As these women are happy to purchase straps in new colors and styles once the latest version of their smartwatch comes out, the brand enjoys a strong Repeat Customer Rate.
This company has undergone review by our lending partners and has earned SBA Pre-Qualification, giving qualified buyers the chance to acquire the business with a down payment as low as 10%.
The SBA loan comes with a full 10-year amortization period and highly competitive interest rates, allowing buyers to realize a quicker return on investment. The extended repayment terms also offer more flexibility in managing debt than with standard commercial acquisition financing.
The brand has maintained their loyal following by regularly releasing new versions of their watchstraps, with their product roster now sitting at 74 SKUs. Instead of relying on a single manufacturer, the company sources from a diverse network of suppliers, making it much easier to design and issue new products and related accessories for future upsells.
Their products, which have been designed to suit women’s unique styles and help them feel beautiful, have earned an Average Order Value (AOV) of $52.78, 420% YoY revenue growth and 318% YoY EBITDA growth. As their customer base is happy to make repeat purchases to suit different occasions and outfits, their Repeat Customer Rate and Lifetime Customer Value are both on the rise.
The company generates sales through their branded Shopify website and their Amazon storefront, which provides them with diverse streams of revenue.
Business Broker Takeaways
1. Capable Team. The brand’s daily operations are managed by 10 skilled and very qualified team members, with 2 of these employees filling leadership roles as the director of operations and finance manager. They also have several customer support agents in place, and their paid advertising is handled by a marketing agency. The brand has an overseas warehouse, with their inventory in the US being handled by a 3PL. They also utilize Fulfillment by Amazon (FBA) for their shipping.
Current ownership, meanwhile, is responsible for marketing, logistics, product sourcing, and order management. As the company’s team is highly competent, this acquisition would be excellent for a first-time buyer interested in exploring the online space, or for an entrepreneur interested in focusing on scaling.
2. Valuable Brand Assets. The company possesses a wealth of brand assets, which will transfer alongside the sale. These asserts include their SKUs’ trademark, high-quality photos of their products, videos, and an email database with a brow-raising 500,000+ subscribers. These, along with their user-friendly eCommerce website, have proven to be valuable tools for attracting new customers.
3. Polished Digital Marketing. The company has taken full advantage of their assets through a successful digital marketing plan. Outside of their email marketing campaigns, they use an effective PPC ad campaign on Facebook and Google, and have optimized their website with SEO keywords to boost their search engine ranking. Their Ambassadors’ Program, which pays ambassadors a 10% commission on every sale they make, has also been very beneficial for promoting the brand.
The Company
The brand has flourished in a highly profitable market. As new watch models are introduced every year, they have been able to consistently target new customers, expanding their consumer base and making more profit. A buyer with knowledge of the smartwatch vertical and the ambition to scale could develop this company into an industry leader.
One method a buyer could take to scale would be to release additional types of smartwatch straps, such as ones with new styles, different materials, or specialized color designs. They could also create straps for other smartwatch brands to tap into a much larger potential customer base.
The company has recently worked to improve their organic traffic by partnering with YouTube influencers and working with content creators who post articles on their site. A buyer could carry this momentum forward by investing in the brand’s social media advertising, email marketing, and influencer collaborations.
The brand could also partner with other smartwatch strap companies to cross-promote their products through high-profile co-branded marketing campaigns, or by offering their SKUs in product bundles with other brand names.
The brand’s committed customer base, enthusiastic reviews, and rapidly rising revenue offers a promising future for an ambitious buyer.
This Company is Represented by:
WebsiteClosers.com
Technology, Internet & eCommerce Business Brokers
WC 3509