Price: $1,800,000
Revenue: $2,580,968
Cashflow: $598,073
Website Closers® presents an eCommerce Brand that offers appealing products geared to the Mexican American population in the U.S., a significant consumer base that is now 11% of the U.S. population and 62% of this country’s Hispanic population. Members of specific ethnic groups can quickly become loyal customers if they find a business marketing online products that reflect their heritage, and this 5-year-old company has focused on creating quality products that Mexican Americans appreciate and are eagerly buying.
For a buyer of this offering, consider that the Mexican American population in the U.S. is growing, and they are looking for specialized products, often discovering them through eCommerce stores. As this company continues to grow, it has the potential to dominate this underrepresented market and become a top leader in this lucrative vertical.
By introducing SKUs on its website that include apparel, accessories, and home products with a Mexican flair and design, this company grew rapidly, having sold $2.5 million worth of products and $353,000 worth on their Amazon platform. The brand is now shipping up to 155 orders a day. A considerable part of the company’s appeal is offering products that enable customers to demonstrate pride in their culture and heritage by purchasing them.
The company has built up a considerable amount of brand recognition, with sales driven higher by strong PPC ad campaigns on social media and through email marketing to their massive email database of 472,000+ subscribers. With products available on both their website and Amazon, the company has several top-selling items, including a pair of slippers that the business created and has patented. With an Average Order Value of $36, they keep 30 products in stock but have the ability to offer considerably more SKUs through a print-on-demand method. This has become a very cost-effective way for the company to continue expanding its customer base and to promote upsells without having to stock a high inventory.
This is also the ideal opportunity for a buyer to quickly scale this company since there are plenty of additional products that could be offered simply by adding their patterns and designs to them. In fact, the company already has a list of potential products, compiled based on feedback from their buyers. The company has a highly active social media presence on Instagram (where they maintain 242,000+ followers) and Facebook (128,000+ followers), and they interact with customers and frequently ask what products they would like to see in the future. This generates a lot of engagement that not only enables the business to direct its digital marketing more effectively, but also contributes to the launching of new products certain to be strong sellers.
Adding SKUs isn’t the only way to effectively scale this business. Since the current ownership works as little as 5 hours per week running this turnkey operation and has experienced employees handling daily tasks, a new buyer could put this business on a path to skyrocketing growth very quickly. That could include launching international sales on Amazon’s foreign platforms, expanding to additional sales channels, and directing their marketing to new social media sites such as YouTube and Snapchat. As this brand has already demonstrated, they have a knack for directing its marketing to exactly where Mexican American consumers are looking.
Their Customer Base
The company’s founder emigrated to the U.S. from Guanajuato, Mexico, and launched this business out of a sense of pride in that Mexican heritage. With a strong understanding of the kind of products that Mexican Americans living in the U.S. were looking for, the owner was able to find suppliers in Mexico, Guatemala, and in the United States to create products that are both practical to use and a reflection of that ethnic heritage.
SKUs that include tumblers, handbags, water jugs, blankets, backpacks, and many others have found a receptive market in the U.S., particularly among women between the ages of 20 and 40 who have a Mexican heritage.
Their products have become popular gift items, with sales soaring around special dates such as Mother’s Day and around Christmas. Their competition is limited since this company is the only store creating these unique items and ensuring they provide both quality SKUs and superior customer service. Their products receive an increasingly high and impressive number of 5-star reviews, which emphasize not just the exceptional quality of the products but also the designs that appeal to the buyers’ heritage.
With their effective social media engagement and valuable customer feedback, the company is on track to keep growing operations, understanding exactly how to satisfy its customer base. For a buyer, that loyalty is a guarantee of strong recurring revenues through an efficiently managed operation.
How They Operate
While fully customized products can be easily made through print on demand, this company also stocks many products in its 5,000-square-foot warehouse. For its top-selling products, the company typically places large orders over the summer so these items will be fully stocked for those booming Christmas sales. A second large order is placed in December, so the company is ready for the peak in sales around Mother’s Day.
Inventory is easily managed through the tools provided by their Shopify account.
Daily operations are overseen by the current ownership’s team which includes a full-time warehouse manager and a full-time warehouse employee who stocks and ships items. Part-time workers handle customer service inquiries and social media accounts, enabling the owner to focus on managing PPC ads and inventory and placing new purchase orders. Even those tasks could easily be outsourced to a virtual assistant.
With up to 100 customer service inquiries coming in daily at peak times, the company also builds customer loyalty through fast responses and quick attention to any needs or concerns of the customer. A new owner gains a major advantage through this strong operation.
How They Market
With the average return on the company’s PPC ad spend campaigns at 2.3x, the company’s investment is paying off handsomely. That’s also true for their email marketing, where the average is considerably higher at a 10x ROI.
Their meta ads are run on popular social media sites Instagram, Facebook, and TikTok, where the brand maintains 58,8000+ followers and has received a whopping 664,1000+ likes for their product videos.
This content strategy is boosting the company’s organic traffic in very large numbers, bringing them 230,000+ unique visitors each month.
There are additional digital tools that a buyer could use to scale the business. Having employed video marketing so successfully on Instagram and TikTok, the company could expand onto additional popular social media channels such as YouTube and Snapchat, where video ads and posts are known to drive huge spikes in sales.
The company could launch a PPC ad campaign on Amazon, and fully optimize its Shopify website for SEO keywords that customers are putting into search engines. Their SEO campaign could include an informative blog on the website.
Having demonstrated immense appeal to their target audience and with strong opportunities to scale quickly, this business is a surefire bet to find creative ways to become a recognized leader in the niche space of products emphasizing Mexican-American heritage. The audience for these products is well established in the U.S., and now a buyer can explore the many paths to becoming that market leader.
Link to deal: here