Multi-Brand Amazon FBA Ecommerce Store: Pet, Italian-Designed Candle, and Luxury Bathroom Product Retailer
This eCommerce retailer focuses on selling premium pet products, Italian-designed candles, and luxury bathroom products through Amazon FBA. The business comprises 3 brands with a total of 50 SKUs and has experienced a 38.8% growth rate in Q1 2020. The business is easy to run with only a 20 hour workweek required. Scale opportunities include PPC/AMS advertising on Amazon, exploring other online marketplaces like Etsy, eBay, and Walmart, and exploring large scale sales opportunities.
OPERATIONS
The company sells products through Amazon FBA and has established procedures in place to manage inventory, which is kept pre-staged and labeled in a warehouse in Los Angeles before being shipped to Amazon. The candles are manufactured in China and branded under one brand name. All the products sold are FBA/ Prime.
Multiple suppliers require little oversight. All products are kept pre-staged and labeled in a warehouse in Los Angeles before being shipped to Amazon as needed.
MARKETING AND KEY METRICS
The business sells products through Amazon and could begin advertising through PPC/AMS. The offline brick and mortar stores can work toward building rolling revenue. New SKU’s and bundles remain a priority.
The primary sales channel is Amazon FBA. There is also a new potential for exploring other online marketplaces like Etsy, eBay, and Walmart. Offline brick and mortar stores and exploring large scale sales opportunities are recommended.
The average order value is $24. The business has experienced a 38.8% growth rate in Q1 2020. The goal is to grow the profit by 25-30% vs 2019 in 2020.
The customer base includes people who are interested in buying luxury pet products, candles, and bathroom products.
BUSINESS MODEL & RESOURCES NEEDED
The business is a single owner operated business that requires an easy 20 hour workweek at most, but averaging 4 hours most of the year. The seller has contracted a writer to maintain the blog who can be kept on.
THE INDUSTRY
The business operates in the online home accessory market and sells through Amazon FBA. This part of the market has seen an uptick with the current Coronavirus Pandemic. Some of the primary competitors of this business are brands like The Honest Company and Amazon Basics.
OPPORTUNITIES TO SCALE
The scale opportunities include PPC/AMS advertising added at Amazon, expanding to other online marketplaces, exploring brick and mortar stores, and exploring large scale sales opportunities. As always, the addition of new SKU’s and bundles should remain a priority.
Asking Price: $600,000
Gross Income: $868,168
Cash Flow: $136,310
Year Established: 2016
Employees: 1
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