23-Year Chess Products and Information Services Brand with 61% Year-on-Year Growth and Multi-Channel Sales
This 23-year-old eCommerce brand is a leader in the chess products industry, offering a comprehensive product line that includes chess sets, software, training videos, and more. With a loyal customer base and strong relationships with eCommerce giants like Amazon, the company has experienced consistent growth in revenue. The industry itself is booming, driven by the rise of TV shows and powerful chess technology. The brand has a 99% positive lifetime Amazon seller rating and has the potential for further growth through PPC marketing, international expansion, and partnerships with big box retailers.
OPERATIONS
The company has a well-established operational framework, with products stocked and shipped directly to Amazon for FBA delivery services. The owner spends around 20 hours per week handling customer service, order processing, shipping, and inventory management. The business relies on organic and word of mouth channels for growth, with a focus on email marketing and SEO strategies. There is potential to scale operations by improving social media presence, expanding international sales, and optimizing inventory management during busy seasons.
The company has built strong relationships with manufacturers in the U.S., China, Poland, and India, ensuring a steady supply of cutting-edge SKUs. It also has a worldwide reputation that can be leveraged for international supply chain and sales opportunities. The company can expand sales into promising markets like the UK, EU, Mexico, and Canada, taking advantage of its globally recognized brand.
MARKETING AND KEY METRICS
The company currently generates more than 85% of its sales through Amazon, providing a strong competitive advantage. However, there is an opportunity to diversify marketing channels and expand the brand’s presence on platforms such as Facebook Marketplace and Etsy. Additionally, the new owner can leverage social media platforms like Instagram, Twitter, YouTube, and TikTok to engage younger audiences and promote the brand’s products and content.
The company currently generates more than 85% of its sales through Amazon, providing a strong foundation for growth. To further expand its sales channels, the brand can explore platforms like Facebook Marketplace, Etsy, and international eCommerce platforms. Additionally, the brand can target big box retailers and establish partnerships with schools, tournaments, and other industry events to drive B2B sales.
The company has an average order value of $83.95 and offers more than 2,000 SKUs. Its revenue levels have been steadily rising, with a 61% year-over-year growth rate. The brand has a rare 99% positive lifetime Amazon seller rating, indicating high customer satisfaction. Key metrics to track include sales volume, customer acquisition costs, customer retention rate, conversion rate, and return on ad spend.
The company serves a diverse customer base of chess enthusiasts, including beginners and advanced players. The brand has a strong reputation in the chess community, with a loyal customer base and a high rate of positive reviews. The recent surge in chess popularity has led to increased demand for chess products, creating opportunities for the company to attract new customers and retain existing ones.
BUSINESS MODEL & RESOURCES NEEDED
The company is currently operated by the owner, who spends around 20 hours per week on operational tasks. There are no other employees. A new owner should have a working knowledge of website maintenance, eCommerce marketplaces, SEO tactics, and inventory management.
THE INDUSTRY
The chess industry is experiencing rapid growth, driven by the rise of TV shows and powerful chess technology. In 2020, the industry generated over $1 billion in revenue. The recent popularity of chess, fueled by programs like ‘The Queen’s Gambit,’ has attracted a new wave of players, especially females. Chess clubs, schools, and community centers are seeing increased activity, leading to higher demand for chess products. This eCommerce brand has positioned itself as a leader in the industry and has the potential to further capitalize on the growing interest in chess.
OPPORTUNITIES TO SCALE
There are several scale opportunities for the company. Firstly, the brand can focus on international sales and expand its presence in promising markets like the UK, EU, Mexico, and Canada. Secondly, the company can improve inventory management during the busy holiday season to ensure popular gifts don’t sell out. Thirdly, the brand can target big box retailers such as Target, Walmart, and Costco to tap into the wholesale market. Finally, the company can develop video content for social media platforms like Facebook, Instagram, TikTok, and YouTube to engage a wider audience.
Asking Price: $1,400,000
Gross Income: $900,734
Cash Flow: $361,825
Year Established: 1998
Employees: 1
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