7-Year Amazon Business in Video Game Console Games & Accessories Booming with YOY Growth & Best-Seller Tags
This 7-year-old Amazon retailer specializes in selling video game consoles, games, products, and accessories. With a strong presence on Amazon and over 2,000 active SKUs, the company has achieved consistent year-over-year growth and holds multiple best-seller tags. The business has low overhead, minimal concentration risk, and an average order value of $115. They fulfill approximately 50 orders per day and have minimal inventory storage needs. The company has the potential for further growth through SEO campaigns, social media marketing, and paid advertising initiatives. Additionally, they could explore new brand partnerships, utilize a 3PL partner, and expand their product offerings to drive increased profits. The business is represented by Website Closers and is listed for $725,000. It has a cash flow of $308,262, gross income of $2,866,688, and was established in 2014. The company currently has one employee who dedicates around 30 hours per week to business operations.
OPERATIONS
The company has established efficient and streamlined operation proceedings, allowing for maximum profits with minimal costs. They fulfill orders in-house and maintain low inventory storage needs. The current owner spends approximately 30 hours per week on product ordering, shipping, and customer relations. The business has the potential to further optimize operations by employing a 3PL provider to manage shipping and logistics.
The business follows a no-risk inventory model and fulfills orders in-house. They have minimal inventory storage needs as items are available on-demand and are only held for a short period before being shipped to the customer. To optimize supply and logistics, the new owner could consider utilizing a 3PL partner and exploring new vendor networks.
MARKETING AND KEY METRICS
The company has primarily relied on its Amazon storefront for marketing and customer acquisition. There is an opportunity for the new owner to implement SEO campaigns, social media marketing, and paid advertising initiatives to drive additional traffic and sales. They could also consider creating an in-house branded website to further solidify their position in the video game market.
The company’s primary sales channel is Amazon, where they have established a strong presence and achieved multiple best-seller tags. To drive further growth, the new owner can implement marketing strategies such as SEO, social media marketing, and paid advertising. Additionally, they could explore new sales channels such as an in-house branded website and wholesale partnerships.
The key metrics for this business include average order value of $115, approximately 50 orders per day, and strong year-over-year earnings growth of 70%. The business has achieved multiple best-seller tags on Amazon, indicating strong sales performance and customer satisfaction.
The customer base of this business consists of gamers and video game enthusiasts who purchase video game consoles, games, and accessories. The company has built a loyal customer following through its strong presence on Amazon and its reputation for quality products and customer service.
BUSINESS MODEL & RESOURCES NEEDED
The company is currently owner-operated, with the owner dedicating approximately 30 hours per week to business operations. Transition to new ownership is expected to be smooth, with the option to hire additional staff to handle tasks such as product ordering, shipping, and customer relations. Alternatively, a 3PL provider could be employed to reduce the time investment required for shipping management and logistics.
THE INDUSTRY
The company operates in the online retail industry, specifically in the video game console, games, and accessories sector. The industry is characterized by its growing demand for video game products and accessories, with a significant market share held by online retailers. Examples of other companies in this industry include GameStop, Best Buy, and Walmart.
OPPORTUNITIES TO SCALE
There are several scale opportunities for this business. The new owner can leverage the company’s strong vendor relationships to expand their product offerings and introduce new SKU lines such as new consoles, games, mod packs, and accessories. They can also explore wholesale partnerships to improve the supply chain and drive additional profits. Further scale opportunities include implementing SEO campaigns, social media marketing, and paid advertising initiatives to reach a larger customer base.
Asking Price: $725,000
Gross Income: $2,866,688
Cash Flow: $308,262
Year Established: 2014
Employees: 1
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