Wonder Woo® was established in August 2019 and had net revenues of over $469,000 over the last 12 months, resulting in nearly $74,000 in net income. (Numbers through February 2021.)
The net profit margin for TTM was 15.7%, which is impressive compared to the average net profit margin of 10% for e-commerce retailers. The margin will only get better, since we recently found a new manufacturer, reducing product costs on average 8% while retaining quality.
Tell us a little about yourself. What’s your background? How did you start the business?
I have a broad business background and we acquired Wonder Woo to diversify our businesses and income. It was started in August 2019 by the previous owner.
If you are an e-Commerce business where are your products made?
We have a dedicated agent in China, where all our products are manufactured. He is a great asset who ensures quality control, helps negotiate pricing, and locates new products and manufacturers.
How have you marketed the product and where are your customers originating from?
There is organic business from past customers, as well as from email marketing efforts using the sizable database of 33,000+ emails and names, and social efforts. The majority of the sales historically were driven by Facebook advertising.
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?
It is currently owner-operated, although the previous owner did utilize a VA for customer support.
Top-tier apps are already set up, integrated and loaded with history: Facebook reaching the customers, Shopify powering the store, Klaviyo driving email marketing and campaigns, Zendesk enabling customer support, and ShipBob providing third-party logistics.
Whether you manage the business entirely on your own using all of this automation or leverage outside help, the infrastructure will support even the most aggressive growth.
What does someone need to do to continue operating the business in its current form?
Really just devoting a little time to optimizing the advertising and email marketing should return the business to its run rate.
This business has high-upside, easily implemented potential. The majority of the sales to date were driven by Facebook ads, so there is a seasoned Facebook ad pixel along with a ton of ad history for you to learn from.
Despite little effort paid to social media, Wonder Woo has 2K followers on Instagram, four Facebook pages that support each other, and Pinterest and Twitter accounts that can easily be leveraged to generate traffic with a little attention.
Also, Wonder Woo is connected to Facebook’s and Instagram’s Shops, providing another source of customers that has yet to be tapped fully.
The greatest marketing opportunity is to take advantage of the email list for marketing. With 43,217 customers in Shopify and nearly 33,000 active profiles in Klaviyo, some creative email marketing should easily convert to additional sales.
Can you list a few opportunities for a potential new owner to continue growing the business?
It has multiple sources of business that have been barely tapped: 33,000+ subscribers for email marketing, thousands of followers across all major social media that just need some engagement, unused Facebook and Instagram Shops, and a blog and newsletter list to drive SEO.
Also, thanks to Wonder Woo’s dedicated agent in China, you can easily create new jewelry designs (or have them created) and get them manufactured quickly, resulting in unique products that can further define your brand and increase both revenue and profitability.
Perhaps the greatest opportunity for growth is marketing to Christian men. Wonder Woo carries men’s jewelry, but to date there has been no effort to draw in the men who buy jewelry for themselves or for their wives, girlfriends, daughters, nieces, and friends.
What has been the evolution of this asset since its launch?
When we bought the business, most product was inventoried in the U.S. with some items fulfilled directly from China. We ended this practice since product costs were higher and the slow fulfillment times created enormous customer service headaches.
We sourced a new manufacturer, with whom we reduced product costs an average of 8% while producing at the same or higher quality. We have an inventory replenishment order in process there right now.
How does this business make money? What are the current revenue streams?
In short, online retail sales of unique jewelry specifically targeting Christian men and women. But Wonder Woo is not like most fashion jewelry sites and stores, which are little more than Alibaba front ends. We have a dedicated agent in China, direct oversight of all fulfillment, and content and photography created by us.
Wonder Woo differentiates itself from other Christian jewelry options with this personal touch. Customers feel like they’re buying from a person, not a store, which results in larger average order values ($28.15 TTM) and repeat purchases (over 19% of Feb sales were returning customers).
Revenue has historically been driven directly by advertising (primarily Facebook), but we are seeing increased repeat purchases (noted above), as well as traffic from Instagram and SEO.
What marketing channels are most profitable for the business?
Email marketing, Instagram and SEO, since they leverage the existing customer and follower base. Facebook ads drive the most revenue, but at a cost of course. If a new buyer were to focus their effort on content creation and social engagement, the average gross and net profit margins should respond positively.
How does the business currently acquire customers and what is your breakdown for marketing costs?
Currently, new customers are acquired through Facebook advertising and, to a lesser extent, social engagement.
How big is your current team? How many people does it take to run this business?
It is currently my wife and I running it. As for how many people it takes, it depends on the goals of the buyer.
If you want a business that can run mostly on its own and turn a nice profit, you can buy Wonder Woo, crank up Facebook Ads and the email marketing campaigns, and then spend a few hours a week overseeing everything.
Alternatively, if you’re looking for a business that is already established, profitable and capable of solid growth and profitability, Wonder Woo fits the bill. In addition to the Facebook Ads and email marketing, if you can dedicate a little more attention (either yourself or by outsourcing) to really optimizing the email campaigns, driving engagement on the socials, creating good content to drive SEO and target men in addition to women, you could turn this business into even more of a winner.
What’s the reason for selling your business on Flippa?
We just acquired this business in February and almost immediately after closing, our other business took off and has been consuming all of our time. We spent the last month transitioning and optimizing all of Wonder Woo’s accounts and integrations, sourcing new products, and reducing product costs, so the business is ready for a full-throttle effort.
We are truly disappointed to be selling it so soon since it has everything in place for a quick resumption of sales and rapid growth. But we just don’t have the time to give it the attention it deserves.