A Seller Force offering, this eCommerce company has developed a secure position in the niche field of natural coal charcoal products. While focusing on quick light charcoal and hookah accessories, the brand has grown quickly and has even more impressive scale opportunities, particularly by expanding to include other popular types of charcoal, such as SKUs specifically made for barbeques.
As a commodity, light charcoal is increasingly in high demand today. The global charcoal market is growing significantly due to rising demand for the product.
Charcoal now has a wide number of uses, including for recreational cooking, metal production, building & construction, healthcare, and even pharmaceutical applications.
The increased popularity of barbeque-style cooking in restaurants is also driving up demand for charcoal. Charcoal powder also has medicinal uses and can reduce indigestion, boost antifungal protections, and be used to get rid of harmful toxins in the body.
With the product capable of being used in so many diverse ways, anyone operating a charcoal business today has a very large customer base to target.
That’s been true for this brand, which has seen its sales skyrocket in the past year as the business has grown. Let’s take a closer look at how the company has achieved its sales goals.
Launched three years ago, the company sources its products from manufacturers, and those products are then sold under their brand name. The company began by selling its products on Amazon, which has proven to be a strong sales platform for them.
The company has grown, and now offers 10 SKUs, including Hookah tips, hookah coals, and light coal charcoals.
Sales are healthy with a very reasonable Average Order Value of $10. Their success on Amazon has enabled the company to expand sales onto eBay as well.
While the company doesn’t sell its SKUs on its website – which represents a significant scale option for them – their site has helped drive sales in another way.
The company uses the site to provide useful information about charcoal, its history as a product, and how it can be used today.
The company additionally uses its website to highlight the strengths of their products, including the fact that they sell all-natural, eco-friendly charcoal, that their products are long-lasting, and are high quality. The website also stresses that the company provides its customers with unbeatable customer service.
For a rising brand in the charcoal niche, those are key ingredients to financial success and an expanding customer base.
That strong customer service includes fast shipping through Fulfillment By Amazon. The company is making shipments on a daily basis and replenishes its inventory every four months to keep up with demand.
There are no seasonal factors to those sales, which remain strong year-round.
Customers appreciate their work, as the brand now has a 97% Seller Rating on Amazon, based on nearly 1,000 reviews.
The company has started to expand in another way. Initially, their sales were entirely DTC, but more recently the company has started to receive wholesale orders and is building up a solid B2B sales channel. Considering the large number of industries that use charcoal, that gives this brand has a tremendous growth opportunity in the future.
The company has facilitated this growth through its marketing efforts. PPC ads have been particularly useful in driving traffic to the Amazon and eBay pages, and the company has also taken advantage of giveaway programs to entice buyers to come back for more.
With all of these accomplishments in just three years, this brand is well-positioned for a major growth curve, and it has multiple options for scaling quickly.
With their brand name now well established within this lucrative industry, the company could expand the different types of charcoal they sell and offer more SKUs to their expanding and repeat customer base.
The company could put a stronger focus on their wholesale orders.
Expanding sales channels to include Walmart and other popular sites would also boost sales.
Digital marketing provides the company with great scale options. The company could use social media marketing campaigns to enlarge their organic traffic, and an SEO program that uses popular keywords in their product descriptions would accomplish the same goal. Creating a blog on the website to review news from the charcoal industry would also help drive sales.
The company could also collect emails on its website and use that for a vigorous email marketing campaign that would include a newsletter focusing on new products, promotions, and upsells.
For a buyer, this is an opportunity to take control of a very turnkey operation. The current ownership spends just 10 hours per day managing the business, with tasks that include checking daily sales, reviewing advertising campaigns on Amazon, and maintaining inventory. Some seasonal workers are used during peak sales times.
This is a company that has established itself quickly in this space and enjoys recurring revenues, healthy sales, and a growing reputation within a niche field.
Contact Seller Force today to learn more about the opportunities available through this offering.
Listing ID: SF58