Website Closers® presents a fast-growing eCommerce Business for sale operating in the highly profitable Artistic Gifts vertical, which has demonstrated great skill at capturing a customer base with its 3D Artistic Calendars and Memo Pads. Sales of these uniquely designed and proprietary SKUs brought this company $1.3 million in its first year and the company is now enjoying 30% profit margins.
With 15 SKUs that sell briskly throughout the year at an Average Order Value of $64, the company gets its sales in the U.S. and across Europe, with peaks around the holiday gifting season.
This business represents a clear opportunity for a Buyer to acquire this company, then scale it rapidly by launching new Gift items and investing in an international expansion using Amazon’s foreign platforms.
The company has demonstrated a clear talent for customer engagement through social media platforms. The brand has a whopping 630,000+ followers including 280,000+ on TikTok, 200,000+ on Instagram, and 150,000+ on Facebook. This not only gives the brand huge opportunities to connect with new customers but also drives high levels of organic traffic to their website. The site now receives 118,000+ unique monthly visitors.
The company has other strengths for a buyer to consider. That includes their exclusive relationship with their main supplier, which ensures both the current ownership and a new owner of continued competitive pricing and a consistent supply chain.
This is also a highly automated business. The current owner works just one hour per day, and some of those tasks could be managed in the future by a virtual assistant. The buyer can take full advantage of the company’s rising profits, strong recurring revenues, and creative marketing techniques to focus on scaling the business.
The Gifting industry is certainly an evergreen and enormously lucrative one since people around the globe buy gifts for a long list of occasions, from holidays to birthdays, weddings, anniversaries, graduations, and more. The Global Gift Industry is expected to reach $43 billion by 2027, driven in part by the availability of unique products online and by social media sites promoting them. Studies indicate that 69% of consumers prefer giving gifts to receiving them, so sales are only expected to keep rising as customers search for new, innovative, and specialized gift items.
This brand has benefited from those trends since 8 of its 15 SKUs are designed exclusively for this company.
Business Broker Takeaway
Our analysis of this business revealed several key value propositions for a buyer looking for an online company enjoying fast-rising profits in an evergreen and high-demand vertical, with proprietary products and the ability to scale quickly. We anticipate buyers will recognize that value for 3 important reasons:
- Proprietary Products. The company has a very strong brand uniqueness because of its products. Their 3D artistic calendars have developed a strong following for their design: once the customer rips the papers off each passing month, it reveals the art pieces inside. This approach has given the company an edge over competitors that sell more traditional types of calendars and memo pads, and the company is also benefiting from a surge of interest in crafting products. The company specializes in gifts not commonly found in regular retail stores, giving their customers exclusive and distinctive options.
- Personalized Customer Experience. This brand is known for providing personalized shopping experiences, including a fully customized packaging box, which adds considerably to customers’ appreciation of their products. The company commits to sustainability, using paper products that can be recycled after use, which appeals to customers interested in environmental protection. The brand also emphasizes using high-quality materials in all products.
- Growth Opportunities: An obvious way to grow the brand is through an expansion of the product line, introducing new and innovative gift items that attract a broader customer base. The company could also expand its sales channels to include eCommerce platforms such as Amazon, Etsy, and eBay, and use Amazon’s foreign platforms for an international expansion. The company could also introduce a subscription model for newly launched curated gift boxes, and develop a B2B marketing campaign aimed at corporate gifting.
The Company
This brand has effectively demonstrated that the design of calendars can keep evolving in unique ways that capture the imagination of the public. This has included designing them as pieces of art and incorporating lighting elements to make them both functional as calendars and also as decorative items. The company has done particularly well with interactive products that include a light-up calendar, popular both as a décor item and as a hobby activity.
All products are sold under the company’s brand name, and eight models are manufactured specifically for the business. Products are purchased directly from the supplier and then shipped to a warehouse operated by a third-party logistics partner.
Demand for their products tends to soar during the holiday season when gift-giving is at its highest, and the company also enjoys a significant spike in calendar sales toward the end of the year as the new year approaches.
Operations & Marketing
This turnkey operation doesn’t require a heavy workload for the new owner. The current owner works just an hour a day on the business, focusing on developing the brand by exploring new product ideas, passing orders to their logistics team, and answering specific inquiries from customers. A virtual assistant handles all other customer service issues.
All products are shipped from the warehouse to a fulfillment center, and the company typically stocks around $45,000 worth of inventory to keep up with orders. All orders are shipped in a customized product box with the brand logo and a discount code inside that can be applied to a future order.
The new owner will be able to take advantage of the brand’s robust digital marketing plan that drives high organic traffic levels to the website. The company has hundreds of thousands of followers across multiple social media channels, and that has brought more than 1.4 million visitors to its website in the past year.
The company also runs PPC ad campaigns on Facebook and Instagram, which also boosts traffic to their website, and they post one product video a week on social media.
There are plenty of options for a new owner looking to scale the business through new marketing tools, including starting an SEO program that uses keywords in product descriptions to get higher rankings in search engines, and a blog on the website to further expand their customer base.
The new owner could also explore email and SMS text messaging.
This business was able to capture a significant audience in just a year and is enjoying high profits as a result. As a highly automated business, this is the ideal operation for a new owner to scale.
