Expanding Ecommerce Brand: A Wonderland of Girls’ Gifts & Novelties
The target is a consumer products brand that has developed an online emporium of targeted gifts created especially for girls aged 4 to 11+. Ethically sourced, premium quality and completely unique, the complete product line is designed to give girls plenty of choices to discover and develop their own style and design direction. Plus, many products sold by this eCommerce Retailer are up to half the price of B&M retailers for comparable products. In just three years, this business has snowballed from ideation to a major force in this enviable niche, producing TTM earnings of $818,000 on sales of $5.2 million, and growing.
OPERATIONS
This Internet Company primarily sells on the Amazon channel (3rd Party), with sales split almost equally between the US, Canada and five EU countries. However, significant investment has been made into its website storefront, which has the capacity to fulfill massive sales in both the UK & US through a variety of non-Amazon 3PL partners. The Seller currently has a diverse lineup of 16 Trademarked SKUs selling across the US, Canada and the EU with an average order value of $15.99. Additionally, 15 more SKUs will be launched between July and September of 2019, ensuring that this Company’s almost vertical growth trajectory will only accelerate into a record-breaking Q4, given that all of this company’s products are perfect for any gift-giving season. Most of the existing SKUs have a Top 10 category ranking on Amazon, with many of them Ranked #1 in its category and designated “Amazon’s Choice”.
Significant investment has been made into the website storefront, which has the capacity to fulfill massive sales through a variety of non-Amazon 3PL partners. The business is well-equipped to handle wholesale distribution and brick & mortar sales thanks to its agile factory-direct and Amazon fulfillment platform.
MARKETING AND KEY METRICS
The product line consists of high quality items in categories such as beauty, stationery, arts and crafts and fashion accessories. All of the products are highly ‘giftable’ and on-trend, with branding that resonates strongly with the target audience. In this business, customers have found a reliable and reputable brand that can be purchased online and delivered quickly.
The business primarily sells through the Amazon channel, with sales split between the US, Canada, and EU countries. However, the website storefront has potential for massive growth in the UK and US through non-Amazon 3PL partners. With the launch of 15 more SKUs and the rising popularity of the brand, the business is expected to experience significant growth in sales.
The business has generated TTM earnings of $818,000 on sales of $5.2 million. The average order value is $15.99. The existing SKUs have top rankings in Amazon’s categories, with many of them being ranked #1 in their category and designated as “Amazon’s Choice”.
The customer base consists of girls aged 4 to 11+ and their parents or gift-givers who are looking for unique, ethically sourced gifts. The brand has successfully built a loyal customer base through its high-quality products and reliable online purchasing and delivery experience.
BUSINESS MODEL & RESOURCES NEEDED
The business currently has 6 employees.
THE INDUSTRY
The eCommerce brand operates in the consumer products industry, focusing on the girls gifts and novelty products niche. This industry caters to the demand for unique and ethically sourced gifts aimed at girls aged 4 to 11+. The business has successfully positioned itself as a reputable brand in this niche, generating significant sales and growth through its online emporium. Examples of competitors in this industry include other eCommerce brands selling similar girls gifts and novelty products.
OPPORTUNITIES TO SCALE
There are various scale opportunities for this eCommerce brand. Firstly, the business is well-positioned for wholesale distribution and brick & mortar sales. Secondly, the existing product lineup can be expanded with more SKUs to diversify and capture a larger market share. Lastly, the brand can be an excellent incremental acquisition for other eCommerce retailers in related verticals looking to expand their product offerings.
Asking Price: $3,500,000
Gross Income: $5,228,962
Cash Flow: $818,059
Year Established: 2015
Employees: 6
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