Website Closers® presents a 5-year-old eCommerce Brand in the Decorative Wall Organizers vertical. They have shown themselves to be an invaluable resource in helping the busy and the scattered bring some order into their chaotic day-to-day life.
The company’s unique “command centers” can be easily mounted on buyers’ walls to help them keep track of schedules, jot down notes to self, and store necessities such as mail and files. They offer a grand total of 58 SKUs, which are all designed exclusively for their brand, and are unique enough that they face very little competition.
Their products are often highly valuable in the lives of their customers, and with no quality alternatives on the market, they have developed a strong consumer base. They have an Average Order Value (AOV) of over $150, a Repeat Customer Rate of 30%, and a Customer Lifetime Value of over $300. The excellence of their products has also contributed to them having a strong social following.
Here are some of the reasons why our business brokers are excited about this acquisition.
They enjoy high barriers to entry. There are currently no competitors that sell a product like theirs, with their main competition coming from home organizing products from businesses such as Office Depot, Container Store, Amazon, and so on. This means that they are the go-to source for command centers, which adds to the organic traffic surrounding their product and cements their role in the home organization market.
They’ve refined their marketing campaign. Their marketing campaign consists of a fusion of Facebook, Google, Instagram, and TikTok advertising, with the goal of maintaining an overall ROAS of at least a 3: something that they have maintained throughout the lifetime of the brand. They also do work with paid influencers and giveaways, which has proven to be very successful in attracting new buyers. From there, as more customers find the brand and spread word of it, they have boosted their organic traffic rate to 50% and their average monthly visitor rate to over 35,000.
The current ownership works 30 hours combined a week. The key responsibilities of the owners consist of managing finances, planning inventory, and overseeing marketing efforts, with the brand employing third party contractors and staff members to handle the rest of their operations. They have a full-time warehouse manager/customer support agent, a parttime warehouse assistant, and a parttime designer, with organic and paid social media, email, and their website being handled by contractors.
Shipping and Inventory
The brand ships out about 40 orders every day and possesses the capacity to ship many more. All SKUs are stocked at 4-month selling levels in their 5,000 square foot warehouse, with the owners checking on their inventory levels every month and placing new orders as needed. The current owners are willing to remain the 3PL for a new buyer, which would see them picking, packing, and storing inventory.
Their products are sourced from 2 main suppliers. One manufactures about 70% of the company’s stock, with the other being responsible for the brand’s marker SKUs.
Scale Opportunities
While the exclusivity of their products has put the brand in an excellent position, a savvy buyer can use the groundwork that’s been laid out to make them a true key player in the home organization market.
They could start by releasing new product offerings that relate to their existing SKU roster, then improve their marketing campaign to advertise these new products. Some tactics that the buyer could use to accomplish this include collaborating with home organizing influencers and increasing their TikTok exposure and selling.
From there, the company could expand the markets from which they sell their products. They could market to retailers with whom their product aligns with to start tapping into the wholesale market, and enter the B2B space by targeting schools, offices, and other similar industries. They could also expand their eCommerce presence by building storefronts on popular online websites such as Amazon and Etsy, where their SKU roster would be made available to the massive consumer bases that use these sites for their shopping.
Conclusion
Staying organized is more important than ever in an age where home offices are on the rise, and where, for many, life is more chaotic than ever. Their unique, streamlined product designs have put them in a position to develop into a valuable tool for consumers needing to keep themselves organized and on track, and they have already developed a great social following that the right buyer could use to their advantage. With improved marketing, new products, and strategic expansion, this brand could become a staple in the home organization market.
