WebsiteClosers® presents a high growth eCommerce Brand that has been operating in the Frame Vertical for over a decade, providing Poster Frames, Snap Frames, and Poster Displays. They have established themselves as a leader in their niche through exceptional engineering and high-performance products, which are available in various sizes, colors, and widths. The company’s frames are designed for B2C home use and B2B display solutions, allowing them to effectively target both niche and high-demand markets.
The company takes a multi-channel approach to generating revenue, with Amazon generating 65% of sales and a branded Website generating 30%. They have an AOV of $150 on Amazon and $400 on their website. They are also growing, with 20% YOY sales growth, and 100% net margin growth, showcasing the quality of their products, efficiency of their operations, and loyalty of their customer base.
Their quality is compounded by their polished supply chain management process. The brand holds themselves to a zero-defect policy, which, alongside their advanced packaging, minimizes their complaints and return rates. They manage their products through a fully stocked inventory model that utilizes Amazon FBA and their trusted 3PL partnerships. This model incorporates automated intelligent demand forecasting, making inventory management a simple process.
The company handles contact with their 3PLs, suppliers, and customers exclusively through Slack and their integrated systems.
Business Broker Takeaways
1. Strong Customer Loyalty. The brand’s products are well received by customers, giving them a reputation that successfully speaks for itself. They enjoy a 4.9-star average rating across their offerings, have 12,000 subscribers in their email database, and a respectable 25% Repeat Customer Rate.
The popularity of their products is also proven in their high organic traffic rate; an impressive 50% of their sales are organic, with the company having high domain authority and top rankings for industry-relevant keywords through their SEO campaign.
2. Efficient Marketing. Outside of their high organic sales, the company drives traffic through Amazon PPC and Google Ads. These marketing campaigns have proven highly efficient, with an ACOS of 9% and 6.5%, respectively.
3. Automated Operations. The company’s operations are highly automated, with current ownership requiring minimal daily involvement to provide strategic oversight. Many of the brand’s operations are AI-driven, with other core operations being outsourced or handled by their operations director and customer support manager.
The brand’s operations are also handled entirely remotely. The owner hasn’t visited the US since 2019, hasn’t spoken directly with a customer since 2017, and hasn’t met the manufacturer or 3PL provider in person, making this brand a truly turnkey source of revenue.
Scale Opportunities
The company is highly scalable, with their strong, long-standing 3PL relationships and efficient operations offering a sturdy foundation for the right buyer to build upon.
The new owner could start by increasing the brand’s inventory investments, which would allow them to meet rising demand across sectors. They could also leverage Amazon direct support with promotional events, account growth, and targeted campaigns, strengthening customer loyalty and retention for stronger long-term profits.
The brand is in a prime position to expand into brick-and-mortar partnerships, as there has been interest from major retailers such as Home Depot and Lowe’s in carrying the brand’s products. This would offer a lucrative opportunity to expand through in-store retail, diversifying their profits and making their products accessible to a wider audience.
They have also recorded sales in Canada, Europe, and Mexico, demonstrating their appeal for international markets. They could use Amazon’s global presence and fulfillment network to their advantage to pursue worldwide growth and the sales that would come with it.
Conclusion
This highly scalable acquisition is well-positioned for growth, with automated operations, strong 3PL relationships, and high-quality products. The ideal buyer would have the ambition, skills, and capital needed to scale the company’s operations and utilize their untapped potential.
The current owner, teams, suppliers, and 3PL providers are committed to facilitating a smooth transition, ensuring a buyer’s success. The company’s existing staff are also willing to continue under new ownership.
This Company is Represented by:
WebsiteClosers.com
Technology, Internet & eCommerce Business Brokers
WC 3564