Powell Owl’s, a four-year old online fashion jewelry ecommerce business specializing in high-quality, 100% certified Baltic Amber for children and adults, was sold on Flippa for USD $100,000.
About the Business
Powell Owls sells Baltic amber jewelry, amber gift sets, and teething mittens for children and adults. At the time of sale, the business only sold 100% real, authentic amber certified by the Gemological Institute of America.
The key ingredient of the product, amber, has historically been known to have homeopathic pain relief and healing properties, which is particularly useful in soothing teething toddlers. It contains a “natural analgesic”, which is activated by a baby’s body heat and releases chemicals from the amber that absorbs into the skin, thereby easing the baby’s pain.
The Business Appeal
At the time of sale, Powell Owls generated an annual revenue of USD $137,382, an annual profit of $73,877, a 54% profit margin, and a 1.4x multiple.
The seller of the business, Gavin, sold all website content, files, images, intellectual property, logo, social media accounts, marketing materials, and forwarded the buyer all vendor and manufacturer contacts.
The seller found many opportunities for growth in the business, as the buyer highlighted its ability to significantly increase its footprint in the industry in both the U.S. and international markets.
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Growth opportunities included:
- Expanding into other segments in the industry to increase customer lifetime value (CLV).
- Adding targeted, paid and social marketing campaigns to capture new customers
- Add even more customers to the 15,000 database with email newsletters
- Expansion on Ambassador and Affiliate Programs and building strong relationships with bloggers
For the seller, the list of opportunities for expansion proved to be significant in the appeal of the business.
The typical customer for Powell Owls is female, ages 25-45, looking for a healthy alternative to using medication on themselves or their children. The following are key customer details on the business:
- 76% women vs. 24% men
- 44% are aged between 25-34
- 19% are aged between 35-44
The Selling Journey
Powell’s Owls had always been a side project running on autopilot. When the owner, Gavin, had a baby and decided to relocate his family back to Australia after living in the U.S. for the past 8 years, he decided to sell the business.
For the seller, selling the business was lucrative: it’s in a niche market, has a strong brand reputation, high quality products, and an established, consistent supplier relationship, which is especially important in the current geopolitical climate.
After conducting thorough due diligence, the business was sold on Flippa’s marketplace for a total of $100.
The original owner of the business provided 4 weeks of transition training to the new owner, with a complete hand-off of all documentation, contacts, suppliers, software, and websites to run the business.
Needless to say, the new business owner has plenty of opportunities to expand this lucrative niche.