15-Year Sports Apparel Brand with Amazon/eBay Marketplace Sales Channels and 20% Net Margins on 10,000 SKUs
This eCommerce brand operates primarily on Amazon and eBay, specializing in name brand sports apparel with a diverse product line of over 10,000 SKUs. With consistent 20% net margins, active sales on 30,000+ Amazon SKUs, and 360,000+ units sold in the past year, this company has achieved massive success within the $362 billion global sportswear market, projected to grow to $544 billion by 2026. With a strong reputation and customer base, this brand has done exceptionally well without any digital marketing budget. Operations are smoothly run through five full-time employees, and this highly profitable business presents significant opportunities for scalability and growth potential.
OPERATIONS
This company operates through two primary eCommerce platforms: Amazon and eBay, and has a sophisticated network of seven distributors of well-known household brands. They cross-reference top selling items on Amazon with product availability from their distributors to select high profitability SKUs to list. Operations are efficiently handled by a team of five experienced full-time employees, including a team lead and product management specialist.
The company has built successful relationships with seven distributors of well-known household apparel brands, giving them access to thousands of available items with high profitability. Customer orders are fulfilled at their warehouse or through Amazon’s fulfillment centers.
MARKETING AND KEY METRICS
Although this brand has not invested in digital marketing, they have a large presence on Amazon and eBay with numerous products listed as Amazon’s Choice No. 1 Best Seller within popular categories. They have also relied on selective sponsored ads on their listings, with a high repeat customer rate of 40% and growing overseas sales on eBay.
This brand has done exceptionally well without any digital marketing budget, presenting opportunities to strategically invest in digital marketing to drive higher sales growth. They have achieved a high repeat customer rate and growing overseas sales on eBay, indicating further opportunities to expand and capture new audiences.
The company has achieved impressive sales volumes of 360,000+ units in the past year, resulting in $14 million in revenue. Their 30,000+ active SKUs on Amazon represent consistent sales, with a healthy average order value of $40 per purchase, and 20% net margins on sales.
The brand has developed a loyal customer base of sports apparel customers who seek name brand products with a high degree of quality and authenticity. They are primarily based in the US, but have a growing number of overseas customers on eBay.
BUSINESS MODEL & RESOURCES NEEDED
The company employs a team of five full-time employees, including a team lead, product management specialist, primary packer, merchant fulfilled order packer, and FBA shipment coordinator.
THE INDUSTRY
The sports apparel industry is evergreen and getting stronger, with a projected value of $544 billion by 2026. Sales have accelerated since the Covid-19 lockdowns, with the market for athleisure wear rising by 70%-80% in some countries in 2020. Sports apparel has widespread appeal for sports lovers, fitness enthusiasts, and as a fashion trend, with millions of people seeking to stay comfortable, functional and stylish.
OPPORTUNITIES TO SCALE
This highly profitable brand has significant opportunities for scalability and growth potential by expanding into new product offerings, growing their overseas sales on eBay, investing into strategic digital marketing campaigns, and targeting untapped markets globally and on other eCommerce platforms.
Asking Price: $11,000,000
Gross Income: $13,907,664
Cash Flow: $3,152,207
Year Established: 2007
Employees: 5
- Two Highly Profitable Sports & Fitness Ecommerce Brands For Sale - July 8, 2023
- Branded Ecommerce Company for Baking Goods - July 8, 2023
- Trendy Baby Fashion Retailer Ready to Launch - July 8, 2023
