Exploring a Rising Pet Home Goods Retailer on the International Amazon FBA Marketplace
This 13-year-old Amazon eCommerce retailer offers an extensive range of consumer products focused on pet goods and general home goods categories. The company specializes in highly diversified consumer product lines, ranging from dental chews and cat litter to pet food, with almost 20,000 SKUs. It has an impressive number of best-seller tags on Amazon.com. The company has achieved exceptional revenue growth by identifying trends in both pet goods and the home goods market. The firm has a low SKU concentration and a season-less revenue stream. It has established favorable supplier relationships that provide branded products at competitive prices, which have maximized margins.
OPERATIONS
The company operates under a highly agile and low overhead stock and ship model, with inventory restocked daily by suppliers under favorable net terms. The business model is unique to the industry, ensuring agility and low overhead. With strong sales growth throughout its history, this company is well positioned to benefit from additional investment in digital marketing and social presence.
This company operates with a highly efficient supply chain system with the help of favorable net terms provided by suppliers. The stock and ship model is agile, enabling inventory to restock daily as per consumer demand. Inventory turnover reaches almost 100%, with only a low level of stock on hand. This model ensures very low overhead with high scalability.
MARKETING AND KEY METRICS
This general retail online business has made an exceptional impact over more than a decade, with almost 100% organic sales, and little investment in social or dynamic content. Additional investment in paid advertising and social presence would yield incremental growth. Despite the relatively low amount of advertising on social media platforms, the company has managed to find a niche as an international Amazon best-seller in the pet retail sector.
This retailer operates through Amazon FBA and fulfills international orders through this leading online marketplace. The business has managed to capture both the pet retail sector and the overall general eCom retail space thanks to its efficient stock and ship model that enables agility in the supply chain.
The company has achieved strong year-over-year growth thanks to savvy positioning in both pet goods and the overall home goods market. The company has managed to achieve an almost season-less revenue stream thanks to the low SKU concentration and promotions and other related sales throughout the year.
This international Amazon FBA retailer caters to the broadest consumer base, including pet lovers, professional breeders, and grooming stores worldwide. With almost 20,000 SKUs catering to every customer-specific requirement, the company’s excellent shipping provisions and competitive pricing have provided it with a competitive advantage.
BUSINESS MODEL & RESOURCES NEEDED
This company operates with a total of eight employees who manage an extensive product line of almost 20,000 SKUs and an international market. The majority of the workforce deals with product management, with additional support from the business’s marketing team.
THE INDUSTRY
Pet retail is one of the fastest-growing industries today, thanks to the growing trend of owning pets in every household globally. With continuously growing demand for pets, pet lovers’ indulgence in related consumer products has led to rapid category growth. The market may have experienced a dip during the COVID-19 pandemic, but it has rebounded and is on its way to a progressive trajectory.
OPPORTUNITIES TO SCALE
Additional investment in paid advertising and social presence would be the ideal focal point for future growth, as the company continues to expand its international presence in the online retail space. The business model is highly scalable, with excellent potential to leverage inventory and warehousing opportunities to expand the physical footprint.
Asking Price: $1,850,000
Gross Income: $3,192,989
Cash Flow: $447,090
Year Established: 2005
Employees: 7
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