Thriving Multi-Category Ecommerce Retailer with 30% Net Margins Selling on Amazon and Walmart Marketplaces
This eCommerce business is a highly rated, branded seller on Amazon and Walmart Marketplaces. They specialize in apparel, footwear, and home goods categories. With a seasoned Amazon Seller account and a collection of both private label and branded merchandise, the business has achieved a strong net margin of 30% on all marketplace sales.
OPERATIONS
The business operates as a full-time eCommerce operation, selling branded products from both their own brand and other companies. They purchase bulk inventory from large retail stores, mark it up, and resell it for a profitable margin. They also have their own private label products and are able to fulfill orders through both merchant fulfillment and Amazon FBA.
The business purchases inventory in bulk from large retail stores and stocks it in their warehouse. They have experience in finding deals on inventory and can provide guidance on purchasing in bulk. The current owner dedicated 90 hours per week to operations and is willing to stay on for six months to train the new owners.
MARKETING AND KEY METRICS
Marketing for this business is relatively simple, as the inventory they offer is highly sought after and well-known. There is a potential for growth in PPC advertising and exploring other marketplaces to reach a wider customer base.
The business primarily sells through Amazon and Walmart Marketplaces. To drive growth, they can explore opening a Shopify store, expanding to other Amazon markets, adding new brands and products, and increasing their social media presence.
Key metrics for this business include net margins of 30% on all marketplace sales, inventory worth around $750,000, and a substantial warehouse space required to handle 100-150 orders per day.
The customer base is primarily located in the U.S. (95%) and consists of individuals looking for branded apparel, footwear, and home goods. The business has a strong reputation and positive ratings on Amazon and Walmart, which helps attract customers.
BUSINESS MODEL & RESOURCES NEEDED
The business currently operates with one employee, but additional staff may be required to handle increased sales and operations.
THE INDUSTRY
The eCommerce retail industry for apparel, footwear, and home goods is highly lucrative. Customers are increasingly shopping for these products online, particularly on Amazon and Walmart. This business has positioned itself as a trusted seller with a strong positive rating and a wide range of branded merchandise. The industry is competitive, but the demand for quality products and convenience creates significant opportunities for growth.
OPPORTUNITIES TO SCALE
There are several scale opportunities for this business, including expanding to other marketplaces, developing a Shopify store, adding new brands and products, and leveraging social media for marketing. Additionally, the business can continue to increase its inventory and streamline its supply chain processes for better efficiency.
Asking Price: $1,500,000
Gross Income: $1,715,643
Cash Flow: $518,203
Year Established: 2014
Employees: 1
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