This thriving eCommerce company markets both its own branded products as well as other popular brands’ products. They excel at carefully selecting highly valuable products that translate into high profits. The company has been in operation for over 12 years and currently offers 25 popular SKUs with a high Average Order Value of $615. They appeal to a unique customer mix, including adventurers and hobbyists.
This smoothly operated business stocks its products, using Fulfillment By Amazon for half of all shipments and shipping up to 40 items daily from their 3PL warehouse. There is a minimal workload for the current owner, who only spends 20 hours a week handling customer service, purchasing inventory, and listing products on Amazon. The current owner does not need any employees because the business is so highly automated.
The company stocks its products, using Fulfillment By Amazon for half of all shipments. They now ship by to 40 items daily from their 3PL warehouse, while maintaining on average $500,000+ in inventory at all times to keep up with customer demand.
MARKETING AND KEY METRICS
The company’s marketing campaign focuses on running PPC ads on Amazon, which has increased exposure to a larger audience and expanded their customer base. A more aggressive digital marketing strategy, such as launching a social media marketing, email marketing campaign or SEO program, would be ideal for boosting traffic and potentially upselling to their existing customer base.
The company’s products are available on not just Amazon but also Walmart, and heavily utilizes Seller Central. All of their Amazon SKUs are sold Prime, helping them achieve high profits.
This eCommerce business has brought in a phenomenal $9.3 million in gross revenue, with a high Average Order Value of $615 that keeps profits high.
Their products appeal to a unique customer mix, including adventurers and hobbyists. Their high Average Order Value of $615 translates into high profits, indicating that these customers are dedicated to the brand’s offerings.
BUSINESS MODEL & RESOURCES NEEDED
The current owner does not need any employees because the business is so highly automated, requiring only 20 hours per week of work.
Amazon remains the biggest eCommerce retail platform, recording stunning growth in net revenue, growing from $135 billion in 2016 to a market value of $1.49 trillion in 2020. This business is representative of the strong eCommerce trend, which has become exceptionally profitable, especially for those who carefully select highly valuable products and maintain an efficient operation.
OPPORTUNITIES TO SCALE
The company has the potential to boost profits even higher by exploring new product developments, advertising through social media or email marketing campaigns, and by increasing their SEO. Their recent development was a window bird feeder that the brand was ready to start testing. They have also been honing a strategy for selecting high-quality SKUs that are guaranteed to sell and bring in a high profit.
Asking Price: $3,750,000
Gross Income: $9,325,937
Cash Flow: $1,001,996
Year Established: 2010