23-Year Online Chess Resource with Established Website and Amazon Sales
Website Closers presents an SBA Pre-Qualified Business that has been in business for 23 years, becoming a strategic leader in the Chess Products, Software & Training Vertical. Establishing over 2 decades of consistent success, this company carries a dedicated customer base along with strong relationships across eCommerce giants such as Amazon to stand as one of the most popular sites for chess products, sets, and online training and education anywhere on the Internet. Generating more than $1 Billion in revenue in 2020 alone, this industry is experiencing rapid growth due to the rise of widespread media adulation and innovative chess technology. Spearheading this growth industry, this chess hub has grown exponentially with the rising global interest in chess, excitement which shows no signs of slowing.
OPERATIONS
The business has been serving the chess community since the late ‘90s, and has become one of the most popular websites for products and information. The mission has always been to provide the most comprehensive chess product line and informational resource on the planet. Cutting edge products and books (paper and digital) help drive awareness and education on improving chess playing performance. Products and information are provided for every skill level, with constant and consistent updates.
This company’s chess sets currently make up 60% of the company’s sales while their chess software generates an additional 30%. Leveraging a strong delivery model, their products are stocked by the company and shipped directly to Amazon for FBA delivery services. Attesting its growth to organic and word of mouth channels, steadily increasing numbers, and glowing testimonials from repeat customers prove the efficacy of their products and outreach. They saw a sharp uptick in sales in 2020 with the rollout of 5G, the live streaming of chess events, and online chess servers.
MARKETING AND KEY METRICS
Relying primarily on organic traffic, this leaves tremendous room for growth through the development of PPC marketing, the addition of more products and services, and an extension onto Amazon international. Harnessing a serviceable business framework along with an unrivaled standing on Amazon.com that could be augmented by improved use of other platforms such as Facebook Marketplace and Etsy.
The majority of the company’s current sales occur through Amazon, which provides a strong competitive advantage. To further grow, the company can focus on diversifying to international markets, improving stocking during the busy holiday season, and expanding into other online platforms such as Facebook Marketplace and Etsy.
Earning an average order value of $83.95 across its more than 2,000 SKUs, this company is ensured to deliver reliable, enviable profits. In fact, their revenue levels have seen steady and consistent increase. With an unrivaled reputation in its niche, this business has attracted glowing reviews and a rare 99% positive lifetime Amazon seller rating. As more than 85% of their current sales occur through Amazon, this factor alone amounts to a strong competitive advantage for any incoming buyer.
The company has a dedicated customer base in the chess community, including players of all skill levels. It also attracts new customers through its comprehensive product line, educational resources, and strong reputation in the industry.
BUSINESS MODEL & RESOURCES NEEDED
Its current ownership is capable of efficiently running this business without employees, spending 20 hours a week handling customer service, order processing, shipping, and tracking inventory. Experiencing some seasonality, the current owner notes that their workload typically increases to 40 hours per week during the peak holiday season.
THE INDUSTRY
The chess industry is experiencing rapid growth due to the rise of widespread media adulation and innovative chess technology. With the popularization of chess through shows like ‘The Queen’s Gambit’, increased chess activity in schools, libraries, and community centers has led to higher demand for equipment, books, and instructions. This business stands as a leader in the industry, providing comprehensive chess products, software, and information to players of all skill levels.
OPPORTUNITIES TO SCALE
There are scale opportunities for this business in diversifying to international markets, expanding the product line, targeting big box retailers, and capitalizing on the growing number of chess clubs. With a solid customer base and strong reputation, the business can leverage its brand to access new markets and increase sales.
Asking Price: $1,200,000
Gross Income: $852,209
Cash Flow: $321,115
Year Established: 1998
Employees: 2
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