17-Year Ecommerce Venture in the Board Game Market: Profitable 4-Brand Portfolio with Amazon FBA & Steady Year-on-Year Growth
This eCommerce business has been operating for 17 years and specializes in the sale of board games. It has four in-house brands and primarily sells through Amazon FBA. The company has experienced strong year-over-year growth and is known for its premium quality products. It also recently expanded into importing Chinese hardware and European-style chess sets. The business has a strong supply chain and logistics system, with operations based in Shanghai. It has a team of 20 employees and generates a gross income of $11,429,856. The business is classified as an online retail business in the board game industry.
OPERATIONS
The company operates in the board game industry, offering a wide range of classic, international, and traditional board games. It has four in-house brands known for their quality and presentation. The business primarily sells through Amazon FBA and has established strong vendor relationships in Asia and Europe. It also recently expanded its imports business to include Chinese hardware and European-style chess sets.
The company has a well-established supply chain and logistics system. It has long-term relationships with Asian and European suppliers, allowing for seamless and swift SKU expansion. The business has a China-based purchasing team that secures better pricing, terms, manufacturer selection, and relations. Quality control is performed at a facility in Shanghai before products are shipped to Amazon FBA. The company manages its inventory closely to ensure availability.
MARKETING AND KEY METRICS
The company focuses on marketing through Amazon.com and its own branded Shopify websites. It deploys advertising campaigns on these platforms to drive traffic and conversions. There are opportunities for further marketing through social media platforms like Instagram, Facebook, YouTube, and Pinterest. The company could also partner with influencers and content creators to increase awareness and drive additional revenue.
The company has opportunities for further growth through channel development. It can explore selling its products on platforms like Walmart and Target, as well as expanding into wholesale distribution. There is also potential for in-house game development (Board Game Incubation) and influencer/affiliate marketing. These growth opportunities can help the company reach more customers and increase sales.
The key metrics for this business include average order value (AOV), which ranges from $46.77 to $67.29 across the four brands. The business has high customer satisfaction with Amazon.com ratings above 98% positive lifetime ratings. It also has strong year-over-year growth, with a 20-25% projected growth for 2021. The business has established a strong position on Amazon’s search algorithm (A9), giving it a competitive advantage.
The customer base for this business includes board game enthusiasts and hobbyists, as well as individuals and families looking for entertainment options. The company’s products cater to both casual players and serious gamers. The brand’s reputation for quality and variety attracts a loyal customer base. The business also has the potential to target toy and game stores for wholesale distribution.
BUSINESS MODEL & RESOURCES NEEDED
The company has a team of 20 employees, including a warehouse and QC manager, a purchasing manager, a bookkeeper, a logistics specialist, a graphic designer/photographer/videographer, IT/developers, warehouse employees in China, an executive assistant, a content and marketing manager, and customer service representatives. The team is coordinated and managed by the current ownership.
THE INDUSTRY
The board game industry is a growing market, especially with the rise of online sales and the increased popularity of board games as a source of entertainment. With the growth of e-commerce, board game enthusiasts can easily access a wide range of games from different regions and genres. Examples of other successful online businesses in the board game industry include BoardGameGeek, CoolStuffInc, and Miniature Market.
OPPORTUNITIES TO SCALE
The scale opportunities for this business are significant. It can expand its product offerings, especially in the board game industry, through new SKUs and in-house game development. The company’s vendor relationships and supply chain infrastructure support fast prototyping and strict quality control. There is also potential to expand into other related industries, such as furniture restoration and storage solutions. The business can further expand its distribution channels and marketing efforts to reach a wider customer base.
Asking Price: $9,100,000
Gross Income: $11,429,856
Cash Flow: $1,594,718
Year Established: 2004
Employees: 20
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