Firearm Add-On Accessories Ecommerce Brand Primarily on Amazon FBA
The Tactical Firearm Add-On & Accessories eCommerce Brand sells a range of fully branded tactical firearm accessories such as Rail Mounted Tactical Lights, Flip Up Sights, and more. The business is highly demanded in the firearms industry and enjoys substantial growth potential. The company has over 30 SKUs and operates primarily on Amazon FBA.
OPERATIONS
The company has a flexible model where website and eBay orders are shipped out of the warehouse, as any out-of-stock Amazon FBA products. The business recently shifted to FBM due to Covid-19 concerns but plans to shift back to FBA as the situation normalizes. Amazon FBA sales contribute to 86% of all revenue while eBay and the company’s D2C BigCommerce site account for the balance. The brand currently enjoys a 96% seller rating on Amazon.
The company has no SKU concentration issues in its current range of products. The business model is flexible, so website, eBay orders, and out-of-stock products are shipped out of the warehouse while FBA manages the FBA sales. Due to Covid-19 concerns, the business transitioned to FBM for a while. Still, once the business cycle returns to normal, the company plans to shift back to FBA for most shipments.
MARKETING AND KEY METRICS
Minimal marketing spend has been required in the past as the products are in high demand and niche. The company only utilizes Amazon PPC campaigns, with lean ad campaigns showing an ACOS of 22% on $12,000 monthly ad spend. The recent issues faced in getting inventory demand decrease in advertising spend since February, but the company continues to observe growth.
The company primarily operates on Amazon FBA, which accounts for 86% of all revenue. The balance comes from eBay and the company’s D2C BigCommerce site. The company has lean and efficient Amazon PPC campaigns and shows an ACOS of 22%. The company plans to ramp up PPC campaigns, Google Ad spend and utilize influencers, forums, and content websites to scale and increase revenue.
The company enjoys a best seller badge on Amazon marketplaces, along with a 96% seller rating. The business has seen revenue growth of 20% and 146% profit growth.
The company operates in a niche that has a highly demography. This strategic move has accrued a loyal customer base to the company brand.
BUSINESS MODEL & RESOURCES NEEDED
The company operates with only two employees at present, one of which is a part-time employee willing to stay on.
THE INDUSTRY
The tactical firearm accessories industry is highly demanded and niche, with sales and demand for firearms at an all-time high and growing. The products offered by the company complement the existing market and offer a range of fully branded tactical firearm accessories.
OPPORTUNITIES TO SCALE
Scaling opportunities include expanding product lines, ramping up PPC campaigns, Google Ad spend, exploring new social media platforms, direct media buys, and utilizing influencers. The company has experienced revenue growth of 20% and 146% profit growth.
Asking Price: $995,000
Gross Income: $1,423,200
Cash Flow: $284,400
Year Established: 2015
Employees: 2
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