Multi-Channel Amazon Retailer Selling High AOV Products – 13 Years in Business & 200 SKUs Offered
This eCommerce business sells 200+ high-quality products related to sports, health, and home goods. They have long-term relationships with 50 suppliers and operate an automated business that requires minimal working capital. With over 13 years of experience, the company has developed relationships, protocols, and systems that will transfer well to new ownership.
OPERATIONS
The business currently dropships products from vendors based in the US. Their top-selling products are high-quality infrared saunas, representing 50% of overall sales. The company also markets their products on Amazon Seller Central, with PPC ads to expand their customer base. They have now expanded to sell products on Overstock- representing 10% of their sales, and their Shopify website. They have also added eBay and PayPal as additional options for buyers.
The company has long-standing relationships with 50 US-based vendors who directly dropship their products, reducing the need for bulk inventory or working capital.
MARKETING AND KEY METRICS
The company markets its products in the US during all seasons through their multiple sales channels. While sales peak in Q4 during the holiday season, it attracts strong sales throughout the year, targeting families purchasing products for their own enjoyment.
Currently, the business operates on multiple sales channels including Amazon, Overstock, Shopify, and eBay. The company has more than 2,000+ SKUs available to expand its product line and increase its market reach.The company enjoys sales through DTC, wholesale, retail, and dropshipping with no concentration on any one product. The company has announced the arrival of six more locations in another city.
This business has a high Average Order Value of $1,500 due to the nature of its high-ticket products. The company records an average yearly revenue of $2 million.
The company primarily targets families that look for high-quality indoor and outdoor recreational and relaxation equipment to upgrade their homes.
BUSINESS MODEL & RESOURCES NEEDED
The company’s long-standing relationships with its vendors could easily get transferred to the buyer, and the current owner is available for up to 30 days after the sale to assist the new owner. This is an easy business to scale, simply by broadening the number of SKUs available from current vendors and acquiring exclusive products through special buys.
THE INDUSTRY
This eCommerce business operates in the heavily growing home improvement market. Home renovations and improvements have been gaining popularity and have driven the demand for products that improve the homeowners’ experience, especially for outdoor and indoor recreation and relaxation. This trend has made the market for high-quality products used inside and outside the home extremely profitable.
OPPORTUNITIES TO SCALE
The business has substantial opportunities for scaling, including adding more SKUs from current vendors and acquiring exclusive products through special deals. The company could take advantage of Fulfillment By Amazon to handle additional shipments and add more sales channels like Walmart and Target.
Asking Price: $650,000
Gross Income: $1,759,254
Cash Flow: $185,966
Year Established: 2009
Employees: 1
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