Website Closers® presents a subscription-based eCommerce business that has found its niche among the Bohemian and Wellness markets. Young and growing fast, this brand hosts a diverse selection of 600 active SKUs on its website, including accessories, apparel, essential oils, and health and hygiene products. While anyone can visit the website, customers are encouraged to pay a monthly subscription fee for exclusive deals, rewards, and various other benefits. The company sees an average of 1,000 new subscribers per month, a Customer Lifetime Value of $75, and a projected YOY Revenue Growth Rate of 130%.
The company’s products, 95% of which are sold under their own brand, are spread across a wide range of niches. They offer jewelry centering around mental wellness, bohemian themed hoodies and shirts, tapestries, and much more. Subscribers can purchase these products at a heavily discounted prices and can enjoy other benefits such as access to guided meditation videos and eBooks.
The quality of their products has helped ensure a high average of new monthly subscribers, along with a Return Order Rate of 14%. Their membership has been exceptionally profitable, being responsible for roughly 80% of their total revenue. The company is easily able to bring in consistent revenue through its SKUs, however, with several of its jewelry pieces being incredibly popular. Its most popular product behind its membership, a bracelet, makes up for 34% of product sales. The company’s SKUs are not limited to what is currently listed on its website. While only 600 SKUs are actively listed on the website, they have 2,000 in total in their array. This means that the company is able to keep a consistent circulation of products, in order to keep their offerings fresh and interesting to their customers.
The circulation of new products is one of the most reliable methods for a buyer to grow the business. A selection of new products and collections are added every week, encouraging customers to check in regularly and, if they’re subscribers, to make the most out of their monthly fee.
The company has constructed an exceptional marketing program, one that brings in an average return of five times their total advertising spend. They use a combination of paid advertising on Facebook, Instagram, and Google, along with email and SMS marketing in order to boost sales.
Their email marketing makes effective use of the over 30,000 subscribers in their database, which lets them easily follow up with customers and encourage return orders.
They also make use of SEO tactics on their website in order to bring in organic traffic from search results. They have successfully optimized their product and page tags, and also run a blog centering around positivity, mental health, and mindfulness. In terms of organic advertising, the company has active, healthy accounts on social media. They regularly share messages of self-love and affirmation, encouraging their followers to be kind to themselves and think positively. This approach has been largely successful, leading to over 17,700 followers on their Instagram account, and, impressively, over 168,000 on their Facebook page.
Not only have these tactics led to their impressive return rate on their advertising spend, but it has also led to them seeing an average of over 27,000 monthly visitors to their website. There is still room for improvement, however, as their email and SMS marketing campaigns can be polished and expanded upon to better follow up with their current members and encourage them to keep making purchases. They could also invest more into their acquisition marketing, which, given their current return rate, would likely scale their profits exponentially.
Additionally, given the popularity of their existing social media accounts, it’s likely that they would be able to develop a following on other popular platforms. TikTok and YouTube would both be worth considering, as they are both used by a vast amount of people, and if the company’s posts manage to go trending, then they will be able to reach a larger audience than ever before. The company can bolster their accounts not just on these new websites, but on their existing platforms as well, by pursuing potential partnerships with well-known social media influencers. These influencers would make recruiting members a simple process, as they often already have a large audience of their own to appeal to.
While the company ships out 30 to 50 orders per day on average, the current owner only spends about 20 hours per week managing operations. This is in part thanks to their use of a 3rd party supply chain agency to handle order fulfillment and inventory management, though they also employ a customer service manager, and an operations virtual assistant. The owner’s main responsibilities consist of developing new products, optimizing the website, and managing operations, among a few others. However, some of these tasks could be handled by additional staff, in order to alleviate some of the pressure off the buyer, and make the business more automated.
There are many other scale opportunities in this acquisition’s future. They could, for instance, expand from their Shopify website onto other eCommerce storefronts, or dabble in new types of products and wellness content that might appeal to their buyers. It is in the prime position for rapid growth, and if that interests you, then contact Website Closers today to learn more details from our brokers.
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