WebsiteClosers® presents an astonishing eCommerce brand that has captured the loyalty and passion of its audience with its Synthetic Diamond Rings. These rings offer the luxurious appearance and feel of high-end jewelry while maintaining an affordable price point, making them a winning choice for customers.
The brand’s success is evident in its impressive 40% repeat customer rate, driven by married customers seeking synthetic diamond rings for travel, as backups to their original wedding rings, or simply as affordable additions to their jewelry collection. With the global Synthetic Diamond Ring market valued at $19 billion in 2023, this brand has positioned itself as a leader by creating desirable products and effectively marketing them on social media, where jewelry enthusiasts abound. This approach has fueled the company’s remarkable 233% revenue growth.
For prospective buyers, this brand offers significant appeal. All products are sold under the company’s brand name and are manufactured according to in-house designs, with an Average Order Value of $101—a stark contrast to the $8,000 or higher price tag often associated with real diamond rings. The company’s product range has expanded to 300 SKUs, including necklaces, earrings, and bracelets in various sizes, providing customers with a wide array of choices that encourage repeat purchases. The brand’s social media strategy has also been a key driver of growth, with 21,000+ followers on Instagram and 10,000+ on Facebook, enhancing customer engagement and boosting sales. The company has garnered enthusiastic reviews on Etsy, with over 180+ five star reviews on 800+ in sales.
The company has built a strong foundation and now enjoys steady recurring revenues along with strong peak sales over the holidays. Their customer base is loyal, and in 2023, 2,400+ customers came back to purchase more. This business represents a clear opportunity for a U.S. Buyer to acquire this company and then scale it quickly by continuing to introduce new products, creating new sizes and variations of their top sellers, and expanding their sales channels to include major eCommerce platforms such as Amazon and eBay, which would introduce their diamond rings to a significantly larger audience.
Business Broker Takeaway
Our analysis of this business revealed several key value propositions for a buyer looking for a profitable online business marketing specialized products that have a large audience, with the ability to continue introducing new items for upsells. We are excited about this business for 3 important reasons:
1. Faithful Customer Base: The company’s products appeal primarily to women between the ages of 45 and 55 and most are already married. Their customers share a love for fine jewelry, and the company gets a lot of positive feedback about how affordable their SKUs are. Many of these customers have disposable income that allows them to shop often, and they love a deal. In 2023, 2,400+ existing customers ordered from their website three or more times, while an additional 100 customers made 10 or more purchases. Customers who discover this brand remain with them for years. Because of those repeat buyers, the company has a Lifetime Customer Value of $230, more than double their AOV, and now delivers 697% SDE growth.
2. Vibrant Marketing: While the company has been able to drive sales higher through PPC campaigns on Google and social media sites such as TikTok and Snapchat, they are also enormously effective at using social media marketing to their advantage. In addition to their regular posts on Instagram and Facebook, which has brought them a large audience and 33,000+ unique monthly visitors, the company has a database containing the names of 200+ influencers who have signed up for their affiliates program. Since some of these influencers have 500 or more followers, this has given the company the ability to build brand recognition quickly and attract more of the jewelry-loving customers who trust influencers on their favorite social media sites.
3. Appearing on Network TV: The company has established itself with one of the largest television networks in the U.S. as a recurring infomercial guest. Their past infomercials have been so well received that the company was able to sell out its entire inventory in a single day. They have been invited back to appear during peak seasons and have been offered a premier spotlight time for future infomercials. These broadcasts have enabled the company to attract a flood of new customers overnight. This represents a major scale opportunity for a buyer who could negotiate similar contracts with other major television networks.
The Company
Established in January 2019, the company quickly discovered its audience within this niche market and found that there were plenty of buyers for their synthesized diamond rings. The company purchases related items in low quantities in the U.S., gages the reaction among their customers, and then has the top items mass-produced by their manufacturer. Their best-selling rings come from their designs, and the company has been working with the same manufacturer since they first launched, and now have a trusted relationship.
Their products enjoy a major spike in sales during the holiday season, but unlike many other retailers, this company experiences no drop-off in sales at the start of the new year. Special occasions such as Valentine’s Day and Mother’s Day bring in higher volumes of sales, and they now get steady orders all year long.
Their products, all sold under their brand name, are also trademarked. A buyer has the added advantage that the company completed a full remodeling of its website in 2022, with additional updates at the end of 2023, so the site is functioning at top capacity.
Operations
The company stocks its rings, with those orders coming from one manufacturer and three wholesalers. Once the inventory is received, the company ships from its office, and new orders are typically placed monthly to keep up with demand. The company is also known for and praised by customers for its attractive custom packaging, which its main supplier also creates.
The current owner oversees most major tasks, with assistance from six part-time contractors who each work around 10 hours per week or less. That includes workers who handle shipping and inventory, customer service, email designs, media campaigns that include copywriting and push notifications, and a social media specialist.
Many of the tasks that the current owner handles, including photoshoots, email and SMS text message marketing, PPC ad campaigns, and planning a content calendar, could also be handled by contractors or virtual assistants.
With jewelry maintaining its position as one of our most historic, profitable, and evergreen industries, there are indications that the vertical for synthetic diamond rings is also skyrocketing because it presents an aesthetically appealing option for those consumers who can’t manage the cost of one or more rings made with actual diamonds. As this eCommerce company has demonstrated over the past six years, if you provide attractive rings at a competitive price, your customer loyalty will soar.
With solid recurring revenues and a creative digital marketing campaign, including the company’s highly successful infomercials, the new owner has an excellent foundation for scaling this company in the lucrative Jewelry vertical. This is a great opportunity awaiting an ambitious buyer.
