Website Closers® presents an eCommerce company that has garnered immense popularity and profitability by selling inkless pocket smartphone-compatible printers.
Originating as a DropShipping venture in 2020, it swiftly evolved into a recognized brand, fueled by immediate customer allegiance and a robust and well-cultivated community. Beyond the core printer sales, ongoing revenue streams stem from recurring paper roll refills and the recent strategic expansion to include stationery products in response to an astute observation: a substantial portion of the customer base comprises craft enthusiasts and avid DIYers.
Prior to the brand’s launch, the founder dedicated three years to refining the concept. Within the inaugural nine months, the venture amassed a staggering $1.2 million in revenue, nearly doubling in the subsequent year. Notably, profit margins continue to climb, and the recent inking of an exclusivity agreement is poised to propel revenue to unprecedented heights.
Products & Sales Channels
The comprehensive product range is available for international purchase through the brand’s Shopify-based website and Amazon storefront, with Shopify accounting for most of all sales. The website itself is meticulously optimized to achieve maximum conversion rates. What’s striking is the absence of over-reliance on specific product variations; all SKUs contribute considerably toward total sales. Leveraging Amazon’s exclusivity advantage represents a colossal opportunity for substantial sales growth, especially when considering the potential for streamlining logistics via their fulfillment centers across the US and Europe.
Moreover, sales maintain a healthy consistency throughout the year, experiencing a noteworthy surge in Q4. The primary customer demographic comprises women aged 18 to 35 with a keen interest in crafts and DIY projects. Many of them display remarkable loyalty, evidenced by a commendable 23% rate of repeat orders.
The products demonstrate widespread global popularity, with the UK leading the charge, closely followed by the US, Australia, and Europe.
Sourcing & Logistics
Inventory procurement occurs through collaboration with a sourcing agent based in Asia. Orders are handled in two ways: bought in bulk for shipment to overseas fulfillment centers or DropShipped directly to select destinations. This hybrid approach facilitates international sales, while 95% of US orders are efficiently managed through the Amazon Multi-Channel Fulfillment service.
The business’s working capital needs are minimal, and the on-hand inventory amounts to approximately three months. Orders are placed every two months and shipped via sea freight.
The owner’s commitment to the business is only around ten hours weekly. Their primary responsibilities encompass overseeing the freelance team engaged in customer support and operational tasks, handling supplier payments, and occasionally managing paid advertising accounts.
The freelance team members dedicate between 5 and 20 hours per week and comprise two customer support agents, a social media manager, an operations agent, and a graphic designer.
Lead generation primarily relies on paid advertising across platforms like Facebook, Instagram, Pinterest, and Google, with these channels consistently yielding impressive returns on ad spend. Complementing this strategy, promotional offers reach customers through SMS, email, and Facebook Messenger. The brand boasts a substantial subscriber base, including over 180,000 individuals via email and SMS and 83,000 on Facebook Messenger.
Maintaining an engaged social media community involves active participation through giveaways, occasional paid collaborations, and partnerships with micro-influencers via affiliate programs.
The business is run with efficient systems, ensuring smooth operations and seamless transferability to a new owner. Even someone without prior experience could manage it adeptly, while a buyer with robust digital marketing expertise could significantly expand the brand.
Multiple avenues for growth are readily available, with various methods that can be swiftly implemented.
Opportunities to enhance sales include tapping into the Amazon platform more extensively, despite initial concerns from the owner about potential sales and margin cannibalization. Given the brand’s tenure and credibility, leveraging Amazon could introduce a considerably larger customer base to it. Introducing new products stands as another straightforward method to drive sales. Although the catalog currently contains around 60 products, the extensive email, SMS, and social media database presents an opportunity to market new products to existing customers and achieve high conversion rates with minimal investment.
Moreover, an exclusivity agreement secured in October 2022 positions the company uniquely, as some sellers still offer similar products under different branding. Once these competitors exhaust their stock, the company will emerge as the sole retailer of this sought-after product. Acquiring product rights, optimizing stocking and shipping processes for cost savings, and strategically scaling within the US market—recognized for its high conversion rates—all represent promising avenues for growth.
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Technology, Internet & eCommerce Business Brokers