Amazon FBA eCommerce Brand is a stylish and warm eCommerce brand that offers unique, in-house designed vintage farmhouse decor. They leverage their exclusive designs to offer 13 SKUs with an average order value of $27. With a strong year-over-year growth, their revenues have doubled from 2020 to 2021. The company sells its products on their Shopify website and Amazon, with the majority of sales coming from the latter. They have a loyal customer base and excellent customer reviews on Amazon.
The company operates primarily on Amazon and Shopify. They utilize Amazon FBA services for product fulfillment and maintain about 3-4 months’ worth of inventory. The owner spends 10-15 hours per week on product development, restocking, customer service, and managing PPC ads. There are opportunities for scaling the business, such as expanding onto Amazon’s European and Canadian platforms, exploring sales in the wholesale marketplace, and implementing a more aggressive mix of PPC ads.
The company has three suppliers in China who manufacture their unique products with hand-made fonts and fully in-house made designs. They sell all products under their brand name and utilize Amazon’s FBA services for shipping and fulfillment. The company maintains about 3-4 months’ worth of inventory and places new orders three times per year.
MARKETING AND KEY METRICS
The company’s marketing efforts include a mix of paid and organic traffic. They run PPC ads on Amazon and have a Facebook page with 2,200+ followers and an Instagram page with several hundred followers. The potential for marketing growth includes launching a new social media marketing campaign, influencer marketing on Instagram and TikTok, and improving SEO through a blog on the website.
The company primarily sells through Amazon, with the potential for expansion onto other platforms like Walmart and Etsy. They can also explore sales in the wholesale market, targeting retailers, gift shops, and brick-and-mortar stores. By leveraging international platforms like Amazon’s European and Canadian platforms, the business can reach a wider customer base and drive growth.
The key metrics for this business include gross revenue, year-over-year growth, average order value, customer reviews, and seller rating on Amazon. Other important metrics include inventory management, marketing ROI, and conversion rates.
The company has a loyal customer base who are looking for unique vintage farmhouse decor items to personalize their homes. They attract customers through Amazon and their Shopify website, with a focus on attracting positive customer reviews and building brand loyalty.
BUSINESS MODEL & RESOURCES NEEDED
The company is currently operated by the owner who spends 10-15 hours per week on the business. There is the potential to hire a virtual assistant to minimize the owner’s involvement. Additional team members may be needed as the business scales.
The industry for this business is the global home decor market, valued at $616 billion in 2019 and expected to reach $838 billion by 2027. The market is driven by homeowners looking for specialized niche items to personalize their homes. The company has carved out a loyal corner of the industry with its unique vintage farmhouse decor designs. They cater to the growing cottagecore aesthetic and hometown design trends.
OPPORTUNITIES TO SCALE
The company has significant scale opportunities, including expanding onto Amazon’s European and Canadian platforms, exploring sales in the wholesale marketplace, implementing a more aggressive mix of PPC ads, launching a new social media marketing campaign, and leveraging influencer marketing on Instagram and TikTok. They can continue to introduce new product designs and expand their SKU offerings.
Asking Price: $439,000
Gross Income: $388,230
Cash Flow: $118,843
Year Established: 2019