Growth Amazon FBA Gift Basket Company with Kitting Team and High Rankings
This eCommerce company sells popular gift sets on Amazon.com that include non-perishable and perishable food items, most of them classified as Gourmet Food, and sold pre-wrapped in beautifully knitted fabric gift bags.
OPERATIONS
The company now sources its non-perishable items from multiple suppliers, while all perishable items are sourced in the U.S. Orders are fulfilled by Amazon, allowing for quick processing and shipping.
Orders are fulfilled quickly by Amazon. The company maintains a 30-day supply of inventory to keep up with high order volume, which can be up to $300,000+ depending on the season. Non-perishable items are sourced from multiple suppliers, while all perishable items are sourced in the US.
MARKETING AND KEY METRICS
The company primarily uses PPC ads on Amazon which has had a highly effective significant impact in driving sales. The company has a high seller rating of 4.9 and has been selected for several Amazon’s choice badges. There are opportunities to increase growth through increased PPC ad spend and a social media marketing campaign.
The company primarily sells through Amazon FBA, which has become the ideal platform for marketing gift sets due to the low customer acquisition costs. The company has also expanded to include additional SKUs and is ideal for scaling through further product development.
The company has brought in more than $2 million in gross revenues. Their expanding customer base has driven sales consistently higher, with room for further growth. The majority of orders come from people buying gifts and having it shipped directly to the recipient.
The company has attracted sales from buyers across all age groups and income levels. Most orders come from people buying gifts and having it shipped directly to the recipient. With a diverse selection of 14 SKUs, the brand has a growing reputation as the perfect place to shop for gift items for all occasions.
BUSINESS MODEL & RESOURCES NEEDED
The current owner spends no more than 20 hours per week on the business, mainly focusing on product development, inventory management, and administrative tasks. The owner employs a part-time assistant who knits their gift baskets, while a part-time virtual assistant manages the administrative side of their Amazon account.
THE INDUSTRY
Gift giving is an extraordinarily fast-growing space, since consumers have demonstrated a willingness to spend considerable amounts finding meaningful gifts that will have an impact. The Global personalized gifts industry is now valued at $25.8 billion, while the food gifting industry in the U.S. is projected to reach $26.1 billion by 2024.
OPPORTUNITIES TO SCALE
Continued product development is a key scale method for this brand, since there are endless specialized gift set ideas available to them. Other methods to drive profits include increasing their PPC ad spend and launching a social media marketing campaign.
Asking Price: $1,900,000
Gross Income: $2,353,624
Cash Flow: $516,125
Year Established: 2018
Employees: 2
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