Selling Out: A Branded Baby Auto Products Ecommerce Retailer With Two Private Label Brands
This eCommerce retailer sells branded baby products and auto accessories through its private label. With a strong online presence, the company is primarily dependent on Amazon’s ‘Fulfilled by Amazon (FBA)’ program. All shipment and delivery requirements are outsourced to reduce expenses and focus on other business aspects.
OPERATIONS
The company’s operations are focused on maintaining a strong online presence and partnership with Amazon while outsourcing inventory management and shipment requirements to third-party logistics partners.
By outsourcing inventory management requirements, the company avoids complications that arise from it. The company has partnered with Amazon’s FBA program to address shipment requirements. This has helped in eliminating the need to maintain large warehouse spaces and incurring operating expenses.
MARKETING AND KEY METRICS
Marketing efforts are primarily focused on strengthening partnerships with Amazon, encouraging five-star customer ratings, and maintaining a diverse catalog of products.
The company primarily focuses on Amazon sales. By maintaining a strong partnership with Amazon and expanding its private label offerings, the company has a tremendous potential for growth, especially in terms of sales channel expansion.
The key metrics for this business include sales revenue, gross margin, and customer ratings. The company relies on Amazon’s 5-star ratings to maintain its online presence.
The customer base comprises those who rely on Amazon’s FBA program for their product requirements, which may include dealerships and distributors of auto accessories, and parents who require branded safety products for their infants.
BUSINESS MODEL & RESOURCES NEEDED
Since the company has outsourced almost every aspect of its business model, it only has two employees who maintain the online presence and catalog management.
THE INDUSTRY
This online business operates in the baby products and automotive accessories industry. The company has branded its private labels in these segments to gain a foothold in the market. The industry is growing as people become increasingly concerned about safety and convenience in baby products and accessories for their vehicles. The company’s extensive product offering under its notable private labels showcases a high potential for growth.
OPPORTUNITIES TO SCALE
This business has everything smart entrepreneurs are searching for in an eCommerce business – multiple categories, multiple brands, strong growth, and low overhead. The company can scale further by increasing the product offering and expanding the private label to generate additional revenue streams.
Asking Price: $3,050,000
Gross Income: $3,528,699
Cash Flow: $764,581
Year Established: 2015
Employees: 2
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