The target is a 25 year old consumer products eCommerce Retailer with product offerings in the Arts & Crafts Space, specifically Fiber Art Supplies, such as premium wool felts, felting supplies, wool roving, waldorf doll making, and kumihimo. This business sells high-end craft supplies that cannot be found in traditional B&M stores - as such- it caters to multiple, specific niches in the segment, such as schools, crafters, museums (including, the Smithsonian) and summer camps, resulting in a high level of repeat customers.
Ownership sources hard to find products from all over the world, including New Zealand, The Netherlands and Nepal, making it the “go-to” source for many unique items, creating an excellent barrier to entry for would-be competitors.
The Company operates on multiple platforms, including Amazon, its own branded website and Etsy. However, over 80% of sales come right from the branded website, with absolutely ZERO ADVERTISING! Included in the company’s product offerings are its own branded and copyrighted line of patterns, designs and kits for doll making, which accounts for approximately 30% of annual sales alone.
With extremely clean books and records and a solid 25-year track record, this niche eCommerce company will do well in front of our Lending Partners – where qualified buyers can acquire a company like this for as little as 10% down!
The owner requirements are approximately 25 hours per week managing the business, with the help of one part time employee. Under this model, the Company produced over $160,000 in 2018 earnings from just $400,000 in sales, with an average order value of $65.99.
Currently enjoying steady YOY sales, this niche retailer is fully developed and is a very potent performer in a trending segment. The foundation of the company has been laid for a buyer to enjoy the ongoing cash flow of the current SKUs while expanding the lineup both on the current sales channels as well as on other channels, both in the US and abroad.
This eCommerce company offers a wealth of available avenues toward scale, including:
• implementing a strong SEM and SMO marketing strategy
• tapping into direct email campaigns - existing database of over 7,500 customers
• expanding the product line to include additional SKUs
• Broaden the categories to adjacent verticals
Like many private brands, this company stands to yield incremental revenue growth with diversification into both generic and niche specific channels such as Etsy, Pinterest, Wal-Mart, Jet and others to include affiliate sales networks. Thanks to a high-quality brand presentation, this trademarked lineup is in a great place to ultimately also attack brick & mortar shelves in the future.
Sales on Amazon are currently limited and account for only 15% of total sales. With zero advertising on this platform, this presents a huge opportunity to drive sales with just a little marketing. Sales on ETSY make up just 3% of total sales, however the Company maintains a 5 STAR rating based on over 700 positive reviews – another HUGE expansion opportunity with a little advertising. This Seller has earned a reputation for not just high quality, but also as a high level provider of world class customer service.
This business is positioned perfectly for scale into alternate sales channels, SKU lineup expansion, and international market entrance, just to name a few.
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