Revolutionary Home Decor Brand Boasts 15 Design Patents and 20,000 4.5/5 Star Reviews
This eCommerce business operates on Amazon in the Stylish Pillow Covers Category and offers 72 different products on Amazon with an Average Order Value of $19. The company has invested in high-quality product and lifestyle images for its products, which helps in driving sales on Amazon. The brand has 15 patented designs, and the business has excellent brand awareness. This company has built up its loyal following thanks to its understanding of the textile industry and what appeals to buyers. The company has a Shopify website that directs customers to their Amazon page, which includes their many SKUs and thousands of positive reviews.
OPERATIONS
Ownership recognized the enormous popularity of the global Home Décor market, which was valued at $737 billion in 2021 and is projected to continue growing by 6.6% in the next few years. The company has been given an Amazon’s Choice badge for certain keywords associated with their category and operates on Seller Central. New inventory orders are placed once a week, and customer service inquiries are handled by Amazon FBA.
The pillowcases are manufactured directly for this brand by their manufacturer based on their designs and styles and sold under their brand name. The covers are made with fabrics that are strong and durable and come in a variety of designs.
MARKETING AND KEY METRICS
The company effectively utilizes paid media on Amazon (Sponsored Ads), which has helped increase their customer base and rank. Because of how quickly new orders come in, the company maintains $300,000 in inventory levels throughout the year. Their sales remain steady throughout the year, peaking in the winter months around the holidays when their SKUs become popular gift items.
Sales remain steady throughout the year. They peak in the winter months around the holidays when their SKUs become popular gift items. The company effectively uses paid media on Amazon (Sponsored Ads), which has helped increase their customer base and rank.
There are tens of thousands of 4.5-5-star product reviews in place to provide evidence of the brand’s popularity with consumers. The company maintains a 100% positive Seller Rating, and the vast majority of their orders are conveniently and quickly shipped through Fulfillment By Amazon. The company has done an excellent job investing in high-quality product and lifestyle images for the products. The present well on Amazon, and their product reviews help them rank well for their Category. They currently have a Top 5 BSR in their category.
The products have become particularly popular with women between the ages of 20 and 50, who have praised these covers online for their look, feel, and quality. The company controls the production of each item and has always selected skin-friendly material to ensure the covers feel soft and delicate. The covers are made with fabrics that are strong and durable, and come in a variety of designs.
BUSINESS MODEL & RESOURCES NEEDED
The current owner spends just 10 hours per week operating the business, often focusing exclusively on strategizing for future growth. The business is turnkey and easy to operate. The owner has 12 employees who handle daily operations, including four eCommerce operators, two designers, two workers who handle sourcing, two overseeing the marketing, one managing finances and an office administrator. The team is available to stay in place to continue managing the company post-acquisition.
THE INDUSTRY
The company operates in the home decor category, which is an evergreen subcategory of home décor that is always in need. The global home decor market was valued at $737 billion in 2021 and is projected to grow by 6.6% in the next few years. The products are particularly popular with women between the ages of 20 and 50 years old. The company has shown that the demand for comfortable home textiles is high, offering tablecloths, table runners, curtains and pillowcases, the latter of which have become their top selling SKU.
OPPORTUNITIES TO SCALE
The brand has 15 patented designs that are registered in the U.S., Canada, Germany, and the United Kingdom, and the company has excellent brand awareness. That would enable the company to take advantage of Amazon’s other foreign platforms, including in Australia, Mexico, the Middle East, and other parts of the European union. The company could also expand its sales platforms by adding sales onto their Shopify website and making their listings available on a host of other popular sales platforms such as Walmart, Target, eBay and Etsy.
Asking Price: $2,000,000
Gross Income: $5,596,867
Cash Flow: $620,000
Year Established: 2013
Employees: 12
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