Brand Expansion: Arts & Crafts Niche Consumer Product Line
This eCommerce driven private label consumer brand caters to the higher end, adult market segment of Arts & Crafts, featuring a line of unique and industry-leading gel pens that cater to all levels of demand from casual to professional users. The brand has an exclusive supplier relationship supplying over 80% of the product mix, situating this business for reliable, profitable success year-round.
OPERATIONS
This business runs on a Fulfilled by Amazon platform, meaning there is little to no physical overhead required since all inventory is stored, packed, and shipped by Amazon. This maximizes margins and allows for the business owner to focus almost exclusively on sales, marketing, and new product research and development.
The company has an exclusive supplier relationship with over 80% of the product mix, ensuring reliability and profitability.
MARKETING AND KEY METRICS
The business uses Amazon’s vast network to spread brand awareness and acquire customers while leveraging its high-profit margins.
The business can build towards faster organic growth through expanding branding, amassing web reviews, and using digital marketing techniques.
The company has seen a remarkable 171% YoY growth on the Amazon platform without sacrificing profit margins.
The target audience is adult buyers of all ages interested in a unique and high-quality line of gel pens. The category represents over 350,000 searches via Amazon each month, generating considerable opportunities to target new customers.
BUSINESS MODEL & RESOURCES NEEDED
Only one employee is needed to handle marketing, research and development, and other business strategies since inventory and customer service handling on Amazon platform.
THE INDUSTRY
The Arts & Crafts vertical niche market is thriving since there is less demand for older, more traditional coloring products like crayons. The company’s gel pens have long lasting ink capacity, durability and feature a high variance of marker tip types resulting in generating a loyal customer base. Fast-growing in popularity, the market is ripe with opportunities for scaling, which makes this business ready for an immediate turn-key solution to anyone looking to enter the industry.
OPPORTUNITIES TO SCALE
Owners can take advantage of scaling opportunities by launching new product lines, targeting new markets through partnering with influencers/bloggers or paid advertising campaigns such as Google AdWords, or exploring other sales channels like licensing.
Asking Price: $675,000
Gross Income: $719,600
Cash Flow: $224,163
Year Established: 2014
Employees: 1
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