Gourmet Food Gift Sets Business: Scaling an Amazon FBA Brand Across Occasions Year-Round
Website Closers presents a successful eCommerce business beautifully positioned in two niche verticals: Gourmet foods and Gift Packages. The company offers gift sets built around themes that make gift-giving more pleasurable and send a stronger message to the recipient. The sales have grown rapidly on an Average Order Value of $36, with an impressive 30% year-over-year growth rate.
OPERATIONS
The company’s operations are highly automated and efficient. Shipments are handled by Fulfillment By Amazon, and the company maintains $300,000 in inventory at all times. Currently, it takes 20 hours a week or less to maintain this business, with tasks that include product development, inventory management, logistics, and accounting.
The company uses the services of a kitting company to make attractive gift baskets, and this kitting company is the key to growing the SKU for this business to any level a buyer would like. Shipments are efficiently handled by Fulfillment By Amazon.
MARKETING AND KEY METRICS
The brand uses PPC ads on Amazon to expand their customer base and bring targeted buyers onboard. The products are ideal for photo postings on social media platforms, which can drive organic traffic to their platforms.
Sales are vibrant on their Amazon platform, and there are opportunities to expand sales internationally, launch on additional sales platforms, and create a social media marketing campaign to drive organic traffic to their platforms.
Some key metrics to consider are the brand’s numerous Amazon’s Choice Badges, a 4.9 Seller Rating, and a large number of 5-star reviews. The brand appeals to people looking for a unique gift regardless of age, gender, or income.
There is no typical customer for the brand since it appeals to people looking for a unique gift regardless of age, gender, or income.
BUSINESS MODEL & RESOURCES NEEDED
The company has two part-time assistants who work on kitting the gift baskets and another who handles the administrative side of the Amazon account.
THE INDUSTRY
The brand operates in the gourmet foods and gift sets industry. It is a niche leader in the global personalized gifts market, valued at $26.3 Billion in 2020. The market is projected to reach $41.3 Billion by 2026, with a 9% growth rate. Customization is an important aspect of profitability in this industry.
OPPORTUNITIES TO SCALE
The company has scale opportunities such as expanding their SKUs to offer new gift sets for different holidays or special occasions, expanding sales internationally, launching on additional sales platforms, and creating the brand’s first social media marketing campaign.
Asking Price: $3,000,000
Gross Income: $2,328,027
Cash Flow: $651,972
Year Established: 2018
Employees: 2
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