Successful Brand Leader in Kitchen, Bed, and Bath Linens – 16 Exclusive SKUs – 50% Customer Retention Rate

Asking Price:
$175,000
Sales:
$641,268
Profit:
$41,885
Year Established:
2016
Multiplier:
3.7x

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A SellerForce offering, this thriving eCommerce company has built up a loyal following in both the U.S. and UK for their high quality, ecofriendly, fair-trade linens and towels. Using Amazon as their singular purchasing platform, the brand has built up a stunning 4.9 Sellers Rating based on more than 6,500 reviews and won multiple Amazon’s Choice awards.

A private label seller with their own brand, this company sells only exclusive products manufactured specifically for them. The brand has developed an excellent reputation among its customers for their sets of dish and tea towels for the kitchen as well as for their popular bath towels. With a modest average order value of $26, their sales soared past $830,000+ in gross revenue in 2020.

Having cultivated a strong customer base in the U.S., UK, and Canada, the company is now preparing to launch into additional markets in the European Union, Japan, and Australia. That’s just one of numerous scale options available to this company, which actually has a wide range of incredible growth opportunities moving forward.

This company was launched nearly six years ago to bring their original towel designs to the Amazon marketplace. In addition to the unique look and style, their products are noteworthy for being ecofriendly, sustainable, and made from 100% natural cotton. The method by which the company ethically sources its products is as much a part of their story as the look of each SKU.

The company began by conducting a market analysis of current demand for these kinds of kitchen and bath towels, then identified how they could differentiate the product from similar ones on the market, and how they could provide a better value to the customer.

The company contracts with a manufacturer in Pakistan, since cotton textiles are the largest export for that country. All products are conveniently shipped through Fulfillment by Amazon. The products are packed in poly bags with an insert card, and packaging is made attractive to enhance the customer buying experience.

So far, the kitchen towels have been their top seller, around 80% of sales. The company has 7 SKUs in the U.S. and 9 in the UK, which includes kitchen linen, bathroom linen, bedroom linen, tea towels, tea sets, beach towels and bedroom sheets.

The company has attracted some impressive customer demographics. Their products are being purchased by men and women of all ages, middle to high income, and many are known embroidery and crafts enthusiasts. Hospitality industry accounts for between 5-10% of clients. The company now has a more than 50% customer retention rate, and that’s reflected in their customer feedback on Amazon. The brand has a 4.9 Seller rating on both their U.S. and UK platforms, and have built up more than 6,500 product reviews in the past five years. They have frequently been cited in consumer review articles for offering the Best Dish Towels, and Best Kitchen Towel Sets.

All products are sold Prime and there are no seasonal factors to their sales, which remain steady year-round.

Equally impressive is that the company achieved this without investing in marketing techniques such as use of social media, email marketing campaigns, or an SEO program such as a blog. Their marketing has consisted of running PPC ads on Amazon, which has worked efficiently to help expand their customer base.

That base would be enlarged considerably if the company invested in a more robust digital marketing campaign. The company could begin postings on Facebook and Instagram and use videos of their products on sites such as TikTok and YouTube. Either approach would significantly boost organic traffic to their website. They could also launch an influencers campaign featuring top embroidery groups.

The same is true by employing direct email campaigns to the growing list of customers who register on their website. That could include offering discount coupons for returning customers.

The company could begin an SEO program that includes use of keywords in product descriptions and a blog to help boost traffic.

In addition to their Amazon platform, the company has its own website that displays their products and provides a link to Amazon, where the products can be purchased.

The company has the option of starting sales on this site and giving customers different ways of making a purchase.

The sales channels could be expanded even further since the company could begin listing its SKUs on secondary eCommerce sites such as Walmart and Target.

Having performed so well on Amazon’s platforms in the U.S. and UK, sales could be expanded to Amazon’s platforms in other parts of the European Union (especially Germany) for a major international expansion. The company is now projecting they will experience a 17-20% growth rate next year as they begin selling products to new markets.

Most importantly, the company can expand quickly by adding to the product line, which would also encourage upselling among existing customers.

The current owner now spends 28 hours per week running this business, with tasks that include product management, supplier, and logistics management, and adjusting the PPC campaigns. The owner has one part-time employee, an admin secretary who handles customer service contacts.

They stock all inventory, and any replacement items get dispatched within 72 hours. All shipments are coordinated through Amazon’s FBA warehouses. The owner now stocks up to $40,000 in inventory throughout the year (which is included in the sales price).

Today, the kitchen, bed and bath linen market is booming, thanks to the rapid increase in online sales.

There has also been an increasing interest among consumers in organic and ecofriendly bed linen and bath linen products. The booming housing market is also a contributing factor to this industry’s success.

This eCommerce company had done a terrific job of designing its own ecofriendly brand products and has made their unique SKUs available on the world’s top eCommerce retailer, and watched as their customer base quickly expanded, sales rose, and their repeat customer rate increased. This company is uniquely positioned to now soar to the next level of profitability.

 

 

Listing Number: SF19

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