various sportswear apparel items

A 14-Year High Growth Amazon FBA Ecommerce Retailer in Sporting Goods With Multiple Best Seller & Amazon’s Choice Badges

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This 14-year-old eCommerce retailer specializes in selling top brand-name sportswear apparel exclusively on Amazon and eBay. With a strong focus on customer service and fast delivery, the company has achieved impressive sales growth, with a 30% Year-Over-Year growth rate in 2021 and a 572% growth rate since 2015. They have earned multiple Best Seller and Amazon’s Choice badges on the platforms. The company operates with a network of distributors and utilizes both Fulfillment By Amazon (FBA) and Fulfillment by Merchant (FBM) for order fulfillment.

OPERATIONS

The company operates a regular 40-hour-per-week business with 6 full-time employees. They handle up to 100 customer service contacts per day and have established a strong product research process to identify profitable Amazon listings. The company has achieved impressive success without any advertising or marketing spend, relying on the popularity of their products and organic SEO provided by Amazon and eBay.

The company has established a network of more than 10 distributors for household brand products, offering a wide range of sports apparel items. They utilize both Fulfillment By Amazon (FBA) and Fulfillment by Merchant (FBM) for order fulfillment, with FBA accounting for around 60% of Amazon orders and FBM accounting for around 40% of Amazon orders.

MARKETING AND KEY METRICS

Currently, the company does not engage in any advertising or marketing activities. They rely on the popularity and demand of their products to drive sales on Amazon and eBay. However, there are significant growth opportunities in launching their own Shopify website, implementing SEO strategies, email marketing campaigns, and leveraging social media marketing.

The company primarily sells on Amazon and eBay, with 90% of sales coming from Amazon.com. There are potential growth opportunities in expanding to other popular eCommerce sites such as Walmart and Target. Additionally, launching their own Shopify website would allow for direct consumer traffic and further sales platform diversification.

Key metrics for the company include 30% Year-Over-Year growth rate, 572% growth rate since 2015, 90% of sales through Amazon.com, 440,000+ units sold in the last year, and an average order value of $36.

The customer base for this company primarily consists of online shoppers who prefer purchasing top brand-name sportswear apparel. The company has a high customer satisfaction rating, as evidenced by their positive Seller Rankings on Amazon and repeat customers.

BUSINESS MODEL & RESOURCES NEEDED

The company has 6 full-time employees, including a team lead, 2 product procurement specialists, a primary picker, order packer, and FBA shipment coordinator. They handle customer service contacts and ensure smooth operations.

THE INDUSTRY

The eCommerce industry has experienced significant growth, especially with the rise of online shopping. This company operates in the sportswear apparel industry, which has seen increased demand as people focus on fitness and athleisure wear. With the COVID-19 pandemic, online shopping has become the norm, and platforms like Amazon and eBay have seen a surge in customers. The industry is highly competitive, but this company has successfully competed by offering top brand-name products and exceptional customer service.

OPPORTUNITIES TO SCALE

The company has multiple scale opportunities, including launching their own Shopify website to drive direct consumer traffic, implementing SEO strategies, launching a blog for organic traffic, email marketing campaigns, and leveraging social media marketing. They can also expand internationally on Amazon’s platforms and explore other eCommerce sites like Walmart and Target.

Asking Price: $15,300,000
Gross Income: $14,427,054
Cash Flow: $3,399,773
Year Established: 2007
Employees: 6

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