Explosive 30% YOY Growth Rate: Unique Gifts Amazon FBA Ecommerce Business
This eCommerce business sells popular gift sets on Amazon.com, with a focus on unique and special gifts that have a higher degree of thoughtfulness and consideration. They offer non-perishable and perishable food items, most classified as Gourmet Food, wrapped in beautifully knitted fabric gift bags. Launched in 2018, this brand has already brought in more than $2 million in gross revenues and has a growing selection of 14 SKUs with an average order value of $36. They use Fulfillment By Amazon, and with minimal competition, this brand seeks to become a leader in the fast-growing gift giving space.
OPERATIONS
The company sources non-perishable items from multiple suppliers, while all perishable items are sourced in the U.S. Sales have continued to grow, and the company has expanded to include additional SKUs that range from towel sets to Halloween items. They maintain a 30-day supply of inventory to keep up with the high volume of orders coming in.
The company sources non-perishable items from multiple suppliers, while all perishable items are sourced in the U.S. Sales have continued to get stronger and the company has expanded to include additional SKUs that range from towel sets to Halloween items. They maintain a 30-day supply of inventory to keep up with the high volume of orders coming in.
MARKETING AND KEY METRICS
The brand has had enormous success with PPC ads on Amazon and high customer satisfaction ratings. However, there is also room for growth via an increase in PPC ad spend, launching a social media campaign, and taking advantage of video marketing on sites such as YouTube and TikTok.
The brand’s attractive gift sets would look ideal in social media posts on popular sites such as Facebook, Instagram, and Pinterest. They recently added videos to their Amazon listings and could employ video marketing even more effectively on sites such as YouTube and TikTok as a method for growth.
The company has brought in more than $2 million in gross revenues and has 14 SKUs with an average order value of $36. They have a growing reputation as the perfect place to shop for gift items for all occasions, with a diverse selection that includes tea gift sets, Get Well gift sets, Gourmet foods, and even plush toys.
Most of their orders come from people buying gifts and having it shipped directly to the recipient. There is no typical customer for the company, which has attracted sales from buyers across all age groups and income levels.
BUSINESS MODEL & RESOURCES NEEDED
There are two employees in the company, including the owner who spends no more than 20 hours per week on the business, focusing mainly on product development, inventory management, and administrative tasks. The owner employs a part-time assistant who knits their gift baskets, while a part-time virtual assistant manages the administrative side of their Amazon account.
THE INDUSTRY
The gift giving industry is a fast-growing space, particularly for unique and special gifts that have a higher degree of thoughtfulness and consideration. The global personalized gifts industry is now valued at $25.8 billion, while the food gifting industry in the U.S. is projected to reach $26.1 billion by 2024. Consumers have demonstrated a willingness to spend considerable amounts finding meaningful gifts that will have an impact – and it’s just easier to do online.
OPPORTUNITIES TO SCALE
Continued product development for new SKUs, including specialized gift set ideas that could focus on weddings, anniversaries, birthdays, etc., can be a key scale method for this brand. Increasing their PPC ad spend and launching a social media marketing campaign can also send profits skyrocketing.
Asking Price: $2,800,000
Gross Income: $2,269,042
Cash Flow: $619,056
Year Established: 2018
Employees: 2
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