About the business
Tell us a little about yourself. What’s your background? How did you start the business?
I purchased Powell’s Owls back in 2017 from the original owner. I have a diverse background having started and sold an online business, worked for large corporations and been involved in running an eCommerce business. I am self-taught in all aspects of eCommerce and enjoy all the aspects of running an online business.
As an eCommerce business, where are your products made?
Our products are all 100% certified Baltic amber and made in Lithuania.
What can you tell us about your Customer Lifetime Value (CLV) and Customer Acquisition Cost (CAC)
The Customer Acquisition Cost (CAC) for the business is extremely low as most traffic is organic or word of mouth. This makes margins a lot higher as I am not paying for online advertising or spending money associated with acquiring new customers. In 2021 the Returning customer rate was 20.6%.
How have you marketed the product and where are your customers originating from?
Powell’s Owls has a good online presence and word of mouth drives a lot of traffic and sales. Typically all customers are from the USA however we do have overseas customers as well.
Is the asset on your listing owner-operated, how much time does it take to run the business, who else is needed on the team, and what is automated?
Powell’s Owls is owned by a single owner who runs all aspects of the business including customer service, inventory management and fulfilment. Prior to Covid in 2020, Powell’s Owls used a 3PL service to manage all aspects of fulfilment but this has now been bought in house. This is not the owner’s full-time job and most of the time spent in the business is doing fulfilment of sales.
What does someone need to do to continue operating the business in its current form?
Powell’s Owls is a turnkey business, with a loyal customer base and extremely high margins. This is a perfect business for someone wanting to get into eCommerce for the first time or an experienced eCommerce buyer looking to add a business to their portfolio.
Growing the business
Can you list a few opportunities for a potential new owner to continue growing the business?
Powell’s Owls has the ability to significantly increase its penetration of the industry both in the U.S. and internationally. Potential growth opportunities include:
– Additional products for young children or expansion into other segments within the industry to increase the customer lifetime value.
– Addition of paid and social marketing campaigns to capture new customers, and create highly targeted campaigns to specific consumer demographics via ads on Google AdWords / Facebook / Instagram/ Tick Tock / Pinterest, etc.
– Creation of an aggressive email marketing campaign to the current database: Marketing to existing customers in the database (15,000 customers) is an opportunity for a new buyer with expertise in this type of marketing.
– Currently, no email newsletter is being utilized or created.
– Additional Wholesale opportunities.
– Increase SEO efforts
– Expand on Ambassador and Affiliate Programs, as well as build strong relationships with bloggers and influencers
– Launch on additional Marketplaces
– More time invested could substantially increase the volume of business
– International Expansion
What has been the evolution of this asset since its launch?
Expansion into more products including adult jewellery (necklaces and bracelets) plus the expansion into new products such as teething mittens, spirituality bracelets etc.
How does this business make money? What are the current revenue streams?
This is an eCommerce business making money through the sale of amber jewellery. The business is well diversified with products being sold via retail and wholesale channels. Products also sold via Walmart marketplace and through Faire (exclusive wholesale marketplace)
What marketing channels are most profitable for the business?
Social media is a fantastic marketing channel to reach new parents and people interested in amber jewellery. Social drives in many sales with no customer acquisition cost. Continuing to grow this channel has the ability to significantly increase profits.
How does the business currently acquire customers and what is your breakdown for marketing costs?
All organic and through social. The business spends less than $500 a month using Google AdWords and Facebook advertising. This is another huge opportunity. There is also 15,000 customers in the database which is an opportunity to market new products as their toddlers are to get older.
How big is your current team? How many people does it take to run this business?
The business is operated by one owner.
What’s the reason for selling your business on Flippa?
The owner is relocating with his family from the USA back to Australia