17-Year-Old Ecommerce Business Selling Folding and Fixed Blade Knives and Cutlery with 86% Repeat Order Rate and Strong SEO Program
This eCommerce business has been in operation for 17 years, offering high-quality folding, and fixed blade knives and cutlery. They source only top-quality products from reputable brands which have a strong reputation among buyers. Their highly lucrative customer base boasts an 86% repeat customer rate, and the company has garnered overwhelmingly positive reviews over the years. They offer their customers over 1,200 SKUs and have an average order value of $116 per order. This company has done an excellent job of attracting collectors who have a large at-home collection and make several purchases monthly.
OPERATIONS
The company has been able to stock its products in a single car garage and still meet the demand for all customer purchases, with an average of 16 orders shipped daily. The brand uses multiple vendors, and there remains a constant flow of inventory from specialty makers. Among their top-selling products are Great Eastern Cutlery, which makes up 30% of gross revenues, Lion Steel Brand (25%), Viper Cutlery (20%), and Case Cutlery (15%). They also sell adjacent accessories such as leather slips, key rings, and educational books on knives and survival.
The company has been able to stock its products in a single car garage and still meet the demand for all customer purchases, with an average of 16 orders shipped daily. The brand uses multiple vendors, and there remains a constant flow of inventory from specialty makers. Among their top-selling products are Great Eastern Cutlery, which makes up 30% of gross revenues, Lion Steel Brand (25%), Viper Cutlery (20%), and Case Cutlery (15%). They sell adjacent accessories such as leather slips, key rings, and educational books on knives and survival.
MARKETING AND KEY METRICS
This company has leveraged marketing strategies such as social media and SEO to capture its audience. The brand has a strong presence on Instagram (3,500+ followers) and Facebook (3,300+ followers) to connect with collectors, hunters, people who love the outdoors, and fishing, among others. They run PPC ads on Google and Bing and take advantage of their massive email database of more than 5,000+ subscribers to send occasional newsletters to their followers. SEO has played a critical role in their success, and their blog on their website has proved tremendously powerful for search rankings.
The company has seen steady sales growth over the years, with sales remaining stable even throughout the year. Sales tend to peak around the holiday season between November and January. The brand’s presence on social media has helped to attract new customers, and they have a massive email database of more than 5,000+ subscribers to send occasional newsletters to their followers. PPC ads on Google and Bing have been used to expand their customer base.
The success of this business can be demonstrated by the overwhelming repeat customer rate of 86%, with average order value sitting at $116 per order. The company’s emphasis on strong content has helped give them top rankings on numerous search engine results related to knives and the sale of knife blades. They now receive an average monthly visit of 23,000+ to their site, and their monthly revenue for 2020 was $59,667.
The company’s customer base has grown to a large number, with no typical buyer found. The customers range from those who purchase a single knife around the holidays to those who have spent several thousand dollars worth in one month. The business has done an excellent job of attracting collectors who have a large at-home collection and make several purchases monthly. Sales of their SKUs remain steady year-round and tend to peak around the holiday season between November and January.
BUSINESS MODEL & RESOURCES NEEDED
The business is fully automated, and the owner, who does not have employees, focuses on order fulfillment, community discussions that help the brand build its reputation, and general tasks. Customer service is handled every day, typically with around 10 customer inquiries coming in each day.
THE INDUSTRY
This business operates in the niche eCommerce industry, specializing in the sale of folding and fixed blade knives and cutlery. This industry has seen growth over the years, with the rise of interest in outdoor activities, hunting, and survivalism. The business has done an excellent job of attracting collectors who have a large at-home collection and make several purchases monthly. Other companies in this industry include Blade HQ, Knife Center, and Smoky Mountain Knife Works.
OPPORTUNITIES TO SCALE
An incoming owner could further boost the brand’s success by expanding their SKUs to eCommerce giants such as Amazon, Walmart, and eBay, which would enable them to tap into their massive customer base. Another option would be to expand the SKUs to include newly emerging models of pocket knives and fixed blades, and to open their first retail store, which could become available to franchisees. Amazon alone would enable this company to expand rapidly by tapping into that retailer’s massive customer base.
Asking Price: $500,000
Gross Income: $716,000
Cash Flow: $99,000
Year Established: 2004
Employees: 2
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