Home » Businesses » SBA PreQualified, High Profit eCommerce Brand in the Socks Vertical – 57% Repeat Orders – Low Risk Profile Business

SBA PreQualified, High Profit eCommerce Brand in the Socks Vertical – 57% Repeat Orders – Low Risk Profile Business

Pending

Website Closers® presents an SBA Pre-Qualified eCommerce Brand with a unique assortment of No-Show Socks, one of the hottest apparel trends within the apparel category. At inception, the company recognized the gap in the market and the limited options for people eagerly looking for no-show socks that fit properly and stay that way over time. It quickly became clear they would have to create a highly effective designs for their socks. Their growing sales and 33% Net Profit Margins make it clear that there is a very high demand for what they’re offering.

The company generates highly enthusiastic customer reviews and receives frequent calls for their product line to be expanded with new colors – with over 10,000 rave reviews and counting, their customers clearly appreciate the men’s and women’s socks that the company markets on its Shopify Website. With an Average Order Value of $32, the company has expanded to 40 SKUs offering a range of different sizes and colors, and their customers appreciate it: they now have a hefty 57.33% Repeat Customer Rate.

Their sales channel got a significant boost when the company entered into a relationship with the TV program Good Morning America to sell their socks on occasional GMA Deals & Seals segments, which are typically done up to 5 times a year. This has become a proven sales method for the brand, which could easily be scaled by targeting additional TV deals on other network programming.

Launched in 2016, the company created its own design for their no-show socks and has an exclusivity agreement with their supplier. Their initial design went through a rigorous prototyping process based on samples and testing over a period of several years, and their products turned out to be something customers definitely wanted. As their reputation and brand recognition improved, growth happened quickly. Today, their sales are not impacted by seasonality factors and stay steady throughout the year, although they do enjoy peaks during the spring and summer months and around the holidays.

The company hasn’t changed its design in years, but they have grown their SKUs. While their Men’s & Women’s no-show socks are classified as two products on Shopify, they now have plenty of variations to offer in different sizes and colors. They sell to customers in every age group, with high conversions among both women and men over age 35. In 2022, the company sold nearly 100,000+ Women’s No-Show Socks and nearly 41,000+ Men’s No-Show Socks. So far in 2023 return customer rate has risen to 57.33%. In 2022 it was 41.8%.

The Company

Their Deals & Steals arrangement was launched in 2018 when GMA first reached out to the company, and they have since become a top converter on that platform, typically a one-minute shoutout. GMA also promotes their products through emails and across the ABC network, and in return, the company pays ABC a 25% fee. Those sales bring the company up to $290,000+ per episode.

The company is unique in that while other companies offer no-show socks, this brand remains one of the few that focuses exclusively on them, and few competitors have been able to match the high quality they put into their products, which are popular for remaining firmly on the soles of the customer, as intended.

This is a highly efficient operation, which requires as little as 3 hours or less per week for the current ownership to operate, and without any employees. Their inventory is stocked at a 3PL and the company now ships up to 200+ products each day. Their reach continues to expand outside the U.S., with an increasing number of sales across Europe and Australia.

The global market for no-show socks is booming today, as an expanding number of customers of all ages look for comfortable, breathable socks that are designed to stay on and stay hidden. This brand has effectively demonstrated how to satisfy those customers and give them exactly what they’re looking for, and now, with nearly a decade of experience building up their customer base, this business is perfectly positioned for a major growth curve.

The company stocks between $200,000 and $500,000 worth of inventory, depending on the sales season, and the 3PL manages all daily shipping and receiving for the company, as well as customer service by email. This has enabled the current ownership to work as little as two hours a week on this highly automated business, with a focus on handling marketing, ordering new inventory, and occasionally outsourcing some select tasks.

The business usually invests in new inventory every 3-4 months and stocks up on larger orders to get a lower price by ordering in bulk.

With their $32 AOV, this marks another scale opportunity for a buyer, since the company hasn’t raised its prices since 2019. With high repeat order products from a loyal customer base, there is ample room to revisit their pricing in the future.

While their GMA episodes have demonstrated the company has the perfect product for TV deals, the company has also invested in other digital marketing tools to drive sales higher, including PPC ads on Google and promoting their products on Facebook and Instagram, where they have a combined 40,000+ followers. The company has also invested in a growing affiliate marketing campaign to help expand their customer base.

Their social media marketing is boosting their organic traffic and is now bringing 30,000+ unique monthly visitors to their Shopify site.

The company has additional marketing tools to tap into. Their email database has a hefty 250,000+ subscribers and an email newsletter would likely boost their Repeat Customer Rate even higher. Their affiliate marketing campaign also points to the likely success of launching an influencer campaign on their social media platform.

Companies succeed and thrive when they know how to solve problems that customers have, and this company did just that by providing them with comfortable and stylish no-show socks that don’t slip off. With a huge number of 5 Star reviews and customer testimonials to promote on their website, the company has demonstrated they fully understood what their buyers wanted and how to market to them.

With that strong foundation, the company has major opportunities for expansion in the hands of an ambitious buyer, and this fully automated business is one that requires no special skills from a new owner, or a heavy workload. On the other hand, the brand’s recurring revenues and strong name recognition are an outstanding foundation for future growth.

This eCommerce Business is Represented by:

WebsiteClosers.com

Tech, Internet & eCommerce Business Brokers

WC 3084

Asking Price
$ 3,400,000
Cash Flow
$ 1,017,149
Gross Income
$ 3,329,611
Year Established
2016

SBA PreQualified, High Profit eCommerce Brand in the Socks Vertical – 57% Repeat Orders – Low Risk Profile Business

Interested in this Listing? Send us
a message today.

Interested in this Listing? Send us a message today.

SBA PreQualified, High Profit eCommerce Brand in the Socks Vertical – 57% Repeat Orders – Low Risk Profile Business

Interested in this Listing? Send us a message today.

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