Rapidly Growing Online Retailer Offering Popular Books, Movies, Toys, and Video Games with Proprietary In-House Software Developed for Fast Deliveries and Robust eBay Presence
This eCommerce retailer offers a wide range of popular books, movies, toys, and video games. They have a strong presence on eBay and have built a loyal customer base. Their success is attributed to their extensive inventory, which allows for steady sales growth, and their dropshipping model that eliminates the need for warehousing and inventory costs. The company has developed proprietary software for quick order processing and delivery, making it well-positioned to scale rapidly.
OPERATIONS
The company operates through a dropshipping model, sourcing products from a wholesale book retailer and handling order processing and shipping through their proprietary software. This streamlined process allows them to process hundreds of orders per day without the need for a warehouse or inventory. The software is integrated with their eBay seller platform, ensuring quick and efficient order fulfillment.
The company relies on a dropshipping model, sourcing products from a larger wholesale book retailer. This eliminates the need for warehousing and inventory management, reducing costs and cash flow constraints associated with inventory buildup. The shipping and logistics are handled by the wholesale book retailer, ensuring quick and efficient delivery to customers.
MARKETING AND KEY METRICS
The company primarily uses eBay’s Promoted Listings program to market their products and boost visibility in search results. They also have a social media presence on platforms like Twitter and Facebook, where they promote new books and engage with their audience. There is potential for expansion into other social media sites and video marketing to further increase brand awareness and attract new customers.
The company primarily sells its products through eBay and has built a strong presence on the platform. To further expand their sales channels, they have the opportunity to expand onto other popular eCommerce sites such as Amazon, Target+, and Walmart. Diversifying the sales platforms can help reach a wider audience and attract customers who don’t frequent eBay.
Key metrics for this business include daily order volume, average order value, customer reviews and ratings, and sales growth. These metrics provide insights into the company’s performance, customer satisfaction, and potential for future growth. The company excels in these areas, with an average of 400 orders per day, positive customer reviews, and a strong sales growth trajectory.
The company’s customer base consists of frequent shoppers on eBay, with a high number of repeat customers. They have received multiple purchase orders from repeat customers and have garnered positive reviews for their quick shipping and excellent customer service. The customer base is diverse and includes individuals interested in books, movies, toys, and video games.
BUSINESS MODEL & RESOURCES NEEDED
The company currently has 2 employees, including the owner who spends approximately 20 hours per week managing customer service inquiries. They also work with an IT developer to manage and maintain their proprietary software. The streamlined operations and automation of the business allow for efficient human resource management.
THE INDUSTRY
This eCommerce retailer operates in the online retail industry, specifically in the selling of books, movies, toys, and video games. The industry has experienced significant growth in recent years, driven by the increasing popularity of online shopping and the convenience it offers. Examples of other eCommerce retailers in this industry include Amazon, Barnes & Noble, and GameStop. The company’s focus on popular and best-selling items further positions it well within the industry.
OPPORTUNITIES TO SCALE
There are several scale opportunities for this business. One option is to list the brand’s best-selling books on other platforms, such as Amazon, to increase profitability. Opening their own Shopify eCommerce store can also diversify sales channels and provide additional revenue streams. Utilizing PPC ads on Amazon and Google, along with implementing SEO strategies, can drive traffic and expand the customer base. Another scale opportunity is to leverage social media sites like Instagram and video marketing platforms like YouTube and TikTok to attract new customers.
Asking Price: $800,000
Gross Income: $3,006,370
Cash Flow: $205,358
Year Established: 2010
Employees: 2
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