Clothing and Accessories Retailer on Amazon: A Success Story
This ecommerce company is a diversified 5-star Amazon FBA Seller Central Account that specializes in selling casual footwear, luggage, handbags, clothing, and related accessories. The company has a streamlined and highly-targeted selection of hundreds of fast-moving SKUs that generates over $1M in annual sales through strictly organic Amazon growth. The company’s sales platform has over 8,200 lifetime reviews. The owner has developed an automated system which requires only a few hours of maintenance per week. The Company utilizes Amazon’s Fulfilled by Amazon (FBA) warehousing, and all inventory is received by the Seller, inspected and then shipped to Amazon’s warehouses where they store it and manage shipping logistics.
OPERATIONS
The company specializes in casual footwear, luggage, handbags, clothing and related accessories. The company has streamlined and highly-targeted selection of hundreds of fast-moving SKUs that generates over $1M in annual sales via strictly organic Amazon growth. The owner is a savvy Amazon seller that has developed a highly automated system that requires only a few hours of maintenance per week. The Company utilizes Amazon’s Fulfilled by Amazon (FBA) warehousing through which all inventory is received by the Seller, inspected, and then shipped to Amazon’s warehouses where they store it and manage shipping logistics. The company’s low overhead and room available for additional cost cutting allow this business to scale.
The Company utilizes Amazon’s Fulfilled by Amazon (FBA) warehousing, so it is not in the business of storing or shipping inventory directly to the end-users. All inventory is received by the Seller, inspected, and then shipped to Amazon’s warehouses where they store it and manage shipping logistics.
MARKETING AND KEY METRICS
The company has created a solid sales platform on Amazon with over 8,200 lifetime reviews. The existing assortment of consumer products in the apparel space allows for a great deal of additional diversifying opportunities through existing suppliers alone. Just the scale opportunities alone make this a homerun buy for the right investor.
The company has created a solid sales platform on Amazon with over 8,200 lifetime reviews. The existing assortment of consumer products in the apparel space allows for a great deal of additional diversifying opportunities through existing suppliers alone. The owner is a savvy Amazon seller that has developed a highly automated system that requires only a few hours of maintenance per week. There are plenty of avenues to scale, whether to grow the Company’s online presence with a website eCommerce storefront, diversify SKU segmentation, or capitalize on existing supplier relationships by adding more offerings to the lineup.
Annual sales: $1M+
The company has built a strong customer base through organic growth on Amazon over a number of years. The company’s low overhead and streamlined operation allow it to offer competitive pricing and high-quality merchandise that keeps customers coming back. The company has successfully tapped into the growing demand for casual footwear, luggage, handbags, clothing, and related accessories with a highly-targeted offering of hundreds of fast-moving SKU’s.
BUSINESS MODEL & RESOURCES NEEDED
The owner is a savvy Amazon seller that has developed a highly automated system that requires only a few hours of maintenance per week. Due to other commitments, the Seller is primarily hands-off and pays others to manage the day-to-day tasks that were previously handled by him. The company’s low overhead and room available for additional cost cutting allow this business to scale.
THE INDUSTRY
The ecommerce industry is the buying and selling of goods or services over the Internet. The clothing and accessories vertical within the ecommerce industry is a growing market segment, which is expected to reach $147.8 billion by 2023. This growth is driven by increased consumer confidence in shopping online alongside the rise in online and mobile shopping. Other successful companies operating in this vertical include ASOS and Boohoo.
OPPORTUNITIES TO SCALE
This is an excellent opportunity for the right investor to capitalize on the growth potential that this company offers. By diversifying into additional product lines, such as niche items that are currently underserved by other ecommerce retailers, this company can significantly expand its reach. Additionally, this business could increase its margins by launching a website eCommerce storefront, allowing it to sell direct-to-consumer rather than solely through Amazon.
Asking Price: $499,000
Gross Income: $1,012,000
Cash Flow: $167,539
Year Established: 2014
Employees: 2
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