Facts and Figures
For sale is a fast-growing ecommerce business in the customized apparel space. It has been selling made to order hats, caps, and beanies to customer around the world since 2002. While the business’ products have wide appeal, its typical customers are clubs, bars, schools, and corporations. The business’ high-quality products have drawn rave reviews and helped the business maintain its steady year-over-year growth.
Revenue year to date is up 49% over the same time period in 2017 and profit over the same timeframe is up 50%. Over a two-year period, revenue is up an impressive 140% and profit is up 147%! Despite this growth, there are plenty of options to expand sales beyond where they currently are. The business has not employed any Facebook or social media advertising, and no advertising of any kind has been used since 2013.
It is operated by one owner/operator and he is selling the business because he is ready to retire. The sale includes the website and related domains, current inventory, customer database, all supplier relationships, and a mailing list of over 5,000.
If you are looking for a thriving business with high-quality products, 15 years of success, and several lucrative growth opportunities, this listing could be a perfect fit.
Why should someone buy this business?
16 y/o Business with 147% Profit Growth over the last two years!
How can the future owner improve this business?
● 3rd Party Marketplaces
○ The new owner could expand to other ecommerce platforms. Currently, the business only sells products on its website. By selling the current products on platforms like Amazon, eBay, Walmart, or Zulily the business could increase its sales and revenue significantly.
● Social Media
○ The Business does not currently have any social media presence. Social media is a significant traffic (and thereby revenue) driver for ecommerce businesses. Unsurprisingly, the same is true across many online business types. Establishing and growing a social media presence through facebook, Instagram, Twitter, YouTube etc. will help attract more traffic and conversions.
● Paid Advertising
○ Because the large 72% of the traffic is organic, the site could see a dramatic increase in users by implementing paid and targeted traffic sources such as Google AdWords or Facebook Ads. The owner used Google Adwords to great success in past.
● Expand To New Markets
- High Barrier of Entry to Market
- Outsourced Order Fulfilment
- Well Established and Unique Brand
Opportunities for a new owner
- Launch New Products
- Start Selling into New Markets
- Improve Current Marketing Efforts
Design My Hat is currently operated by a single owner. According to the owner, he spends around 40 hours a week operating the business. His time is primarily spent on graphic design, marketing, customer inquiries, and order administration. The owner spends the vast majority of his time on graphic design, but he believes this could easily be outsourced. Outsourcing graphic design would reduce the owner time commitment to 10 hours per week.
The business has outsourced bookkeeping, IT and some of the graphic design. All contractor relationships will be transferred to new ownership.
• What channels does the business use to manage customer support?
o Mainly email type support. We have specific email templates that explains the basis of sales and terms and conditions of those sales. The volume is 8 to 10 inquiries per day.
• If the new owner invested more time into the business, would he/she be able to substantially increase revenue?
o This is a definite yes. I could go on for pages how this could be done. Social media – Instagram – Facebook – Twitter - Pinterest, automated systems including website, regular newsletters to email lists, targeting seasons and Google AdWords.
Customer Profile and Segmentation
Our target market is 15 to 45 year old males. 90% of our customers are located in Australia.
73% of our traffic is from Australia and 14% from the US.
Customer have been acquired primarily via organic search, this represents 65% of total traffic.
While direct traffic represents 28% of the total traffic.
Our CAC (customer acquisition cost) is approximately $2.23 per customer for new customers.
Currently, we do not run any marketing campaigns for this business, and we dont have any social media presence. We used to run AdWords campaigns, but We could not handle the larger volume of orders coming through so I pulled the lever to slow things down as I am a one man show. Instead, we decided to concentrate on organic
● Established 16 Years
● High Quality Products
● Rapid YoY Growth
● International Presence
● Multiple Growth Opportunities
Because 99% of its sales are custom orders, the business holds very little inventory. Virtually all of the orders are shipped directly from the supplier to the customer. The business has two primary suppliers. The owner has worked with the Chinese supplier for the last 16 years, and the Taiwanese supplier relationship is 8 years old. All supplier relationships are transferable to the new owner.
There are over 600 customizable products available on the business’ website and the minimum order amount is $1,000.00 AUD. The order minimum has helped the owner eliminate small orders and increase profitability. The suppliers have additional SKUs available for easy product expansion.
The overall order process is fairly straightforward. The owner supplies the artwork, definition and quantities to manufacturer. The manufacturer then makes a pre-sample and sends images of the pre-sample for customer approval. After the pre-sample is approved, the product goes into bulk production. Once production is completed, the order is sent directly to the client via express delivery.
- 2 domain names
- Customer Database
- Supplier Relationships & Agreements
- Trained Staff Relationships
Post sale support
This is support provided by the seller when transitioning the business to a buyer.
About the Seller
Dealflow Brokerage, a premium end-to-end M&A Advisory firm which helps entrepreneurs buy and sell high-value web companies. In the five years since it launched, Dealflow has facilitated more than $43 million in sales.