eCommerce Business with 3 Years of Experience Marketing Natural Charcoal Products – Fully Trademarked – Strong Presence on Amazon with a 97% Positive Sellers Rating

Asking Price:
$255,000
Sales:
$229,583
Profit:
$59,429
Year Established:
2018
Multiplier:
4.31x

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A Seller Force offering, this is an eCommerce company that’s become a niche leader in the field of quick lighting charcoal and hookah accessories. With their own trademarked and proprietary SKUs, the brand has limited competition and a growing reputation for excellence.

The brand mainly sells on Amazon where their reviews have been glowing, and within just a few years the brand has developed a strong reputation for providing quality charcoal made from woods that are fast-burning, and hardwood charcoal made from Hickory and Oak that provide a slow-burning experience.

But in addition to those looking for charcoal to light up their outdoor grill, the brand has a terrific reputation with customers who love to smoke using a hookah pipe for their flavored tobacco. Charcoal has become enormously popular to hookah owners, since their quick light hookah charcoal rings are odorless, light within 15 seconds, and are 100% niter-free. These products are also popular with people who enjoy burning incense.

Their 10 products have given this brand an ideal position in this field, which is a lucrative one, valued at $747 million in the U.S. alone. The global charcoal market is projected to grow significantly because wood charcoal is heavily in demand today — not just for recreational cooking, but also in the production of metal, building and construction, healthcare, and even pharmaceutical applications. The increased use of barbeque style cooking in restaurants is also expected to drive up demand for charcoal.

The market for Hookah products is also growing substantially. The global Hookah market was valued at $149 million in 2020 and projected to reach $506 million by 2026.

More people are looking for alternatives to smoking and Hookah bars have become our new trendsetters, particularly among people looking for alternatives to cigarettes.

This brand has carved out a phenomenal position within both industries, while still offering a buyer terrific scale options. To understand how much this company has accomplished and where their greatest potential lies, let’s review the brand’s unique history.

Launched three years ago, the company was created to market quick light charcoal and hookah related items, which range from Hookah aluminum foil to charcoal briquettes, charcoal grills, even a charcoal mask. While their products are sourced in China, they’re manufactured specifically for this company, and fully brand registered and trademarked.

Sales are divided between the company’s Shopify website and their Amazon platform, and their quick light charcoal has become a best seller for them. The company has enjoyed highly enthusiastic feedback from their Amazon customers who have cited how quickly their charcoal lights up, the diverse uses for them, and how long it lasts. The brand is also cited often for their fast shipping and excellent customer service, and they maintain a 97% positive seller rating based on thousands of reviews.

Sales have been strong, even on a low Average Order Value of $10. The company sells a whopping 250 cases a month, and even ranks as a No. 1 best seller of Incense Charcoal on Amazon, and sales have been vibrant as well for their 100% natural, nitrate-free charcoal briquette.

The company stocks its products, at either their warehouse or through Fulfillment by Amazon.

PPC ads have been the company’s main source of digital marketing, along with giveaways. Social media accounts on Instagram and Facebook have contributed to boosting organic growth on the website.

Opportunities abound to take this brand to a considerably higher level, and that includes through an expansion of their digital marketing plan.

The brand could expand its social media presence since the pages it has now are being underutilized. Sales could soar by rejuvenating their presence on both Instagram and Facebook, since the company effectively uses both sites to either demonstrate the appeal of their charcoal for outdoor cooking, or for Hookah users.

The same is true for video marketing. Sites such as YouTube and TikTok provide the brand will the ideal place for videos of their coal being used to fire up a grill.

A new owner could launch the brand’s first SEO program, employing keywords to boost the website’s ranking on search engines, while introducing a blog on the site. Since hookah is part of a fast-growing and increasingly popular urban culture, there are plenty of topics available for an educational and informative blog focusing on this lifestyle.

The brand could increase its use of PPC ads on Amazon to boost sales there, and on Google to increase traffic to the Shopify website.

Email marketing would also be a highly effective way to increase the brand’s repeat customer rate and use a regular newsletter for promotions, special deals, and upsells.

Marketing is one aspect of their best scale options, but there are plenty more.

The brand could expand its SKUs and has looked into the possibility of adding specialized items such as barbecue charcoal and coconut charcoal to the product line. Selling unique types of charcoal would be an effective way to boost sales, both to new customers and to existing ones.

The company could expand onto additional sales platforms, including eBay and Walmart, to attract more sales.

Another key tactic would be to use the brand’s website to being targeting the wholesale marketing, including the many industries that purchase coal: construction, residential development, hospitals, etc., and sales in the rapidly growing number of hookah shops and hookah lounges that keep proliferating. That could become a massive new opportunity for this business with unlimited growth potential.

This is a highly automated business that requires no more than 10 hours per week to operate. On a daily basis, tasks include checking sales, managing PPC ads, and keeping inventory levels high.

The company does not have any full-time employees but does use seasonal contract workers to unload shipping containers.

This is a fantastic opportunity for an ambitious buyer. One of the company’s greatest strengths is that its SKUs are so specialized that there is very limited competition. No one else is marketing this kind of charcoal and hookah accessories. Combined with the terrific reviews this brand has gotten so far, and it’s obvious this company is at the tipping point of a major growth curve. An ambitious buyer has the ability to send the company’s recurring revenues skyrocketing.

 

 

 

Listing Number: SF39

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