7-Year-Old Craft Segment Ecommerce Amazon Retailer

This company is an established eCommerce business providing craft supplies to creative jewelry makers and hobbyists nationwide. The company has a high-margin business model that takes advantage of diverse sales channels and a 5-star Amazon Storefront receiving both merchant-fulfilled and FBA (Fulfillment by Amazon) orders. The company has seen over 50% YOY earnings growth and has a strong foundation for continued product expansion and sales growth.

OPERATIONS

The business model is a niche model with simplicity and efficiency in operations and profitability through both high margins and volume. It is highly relocatable and has low overhead costs while keeping inventory and labor costs down. The company prides itself in customer satisfaction with quick order processing times and low returns while keeping operational costs to a minimum while encouraging repeat business.

The company has a strong procurement process, working with a network of suppliers for quality products, quick delivery, and competitive pricing. Inventory management and order fulfillment are optimized for efficiency and quick delivery to customers.

MARKETING AND KEY METRICS

This company is highly reliant on online marketing via social media, and email marketing, and PPC advertising on search and social platforms which has been effective in driving organic traffic and customer acquisition. Additionally, the company employs a strategic pricing strategy, promotions, and a rewards program to encourage repeat business and customer loyalty.

The business has the potential for growth by expanding its product line to include more diversified craft segments, leveraging social media influencers, and targeting international markets through Amazon’s global marketplace.

Key metrics for this business include YOY earnings growth, conversion rates, customer acquisition cost, customer lifetime value, and return on advertising spend.

The customer base includes creative jewelry makers and hobbyists nationwide who value high-quality products, quick delivery, and competitive pricing. The company also targets repeat customers through promotions and a rewards program.

BUSINESS MODEL & RESOURCES NEEDED

The company employs two employees who oversee operations and customer service, respectively. As the company is highly relocatable and has low overhead costs, the need for additional human resources is minimal.

THE INDUSTRY

The company operates in the highly profitable arts and crafts industry which is seeing an increasing trend in demand for DIY and handmade products. Other companies in the industry include Michaels, Joann, and Etsy.

OPPORTUNITIES TO SCALE

Opportunities for scale include expansion to international markets, product diversification, strategic partnerships with influencers, and utilizing Amazon’s FBA program to increase efficiency and scalability.

Asking Price: $625,000
Gross Income: $435,000
Cash Flow: $200,000
Year Established: 2014
Employees: 2

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Amanda Stanley

Amanda has been a professional writer since 2010. She writes during the day and reads by night. She has accumulated knowledge by scouring the internet and reading informative books. Concurrently, she developed a passion for educating people through her blogs and web tutorials. She is an earnest believer that knowledge is power.

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