set of colored pencils

Exploring the Art Supplies Industry: A Look at an Ecommerce Brand’s Successful Expansion on Amazon FBA

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This eCommerce retailer is a trademarked brand in the art supplies segment and operates primarily on Amazon’s FBA platform. With a focus on quality and mid-priced products, the brand has experienced significant year-over-year growth. Their inventory includes 6 sets of colored pencils for adult coloring, designed with the health benefits in mind. The business primarily sells through Amazon, with a 98% positive rating and 489 ratings. Marketing efforts have been focused on PPC, sponsored ads, and social media. There are opportunities for scaling through product expansion, big box retailers, and additional eCommerce platforms. The company was established in 2015 and currently has 2 employees.

OPERATIONS

This business operates as an eCommerce retailer on Amazon’s FBA platform. They have reliable suppliers and a loyal social media fanbase. All inventory is 100% stock and shipped in bulk direct from the manufacturer to FBA facilities worldwide. The current owners spend around 20 hours per week on the business.

The supply and logistics for this business are well-established. They have reliable suppliers and manage all inventory through Amazon’s FBA program.

MARKETING AND KEY METRICS

The marketing efforts for this business have been centered around PPC, sponsored ads, and social media. Facebook and reviews, including influencers that have done YouTube videos, have helped create a thriving social media presence and generate excitement about the brand.

The primary sales channel for this business is Amazon, which accounts for 95% of sales. There is an opportunity for growth by expanding to other eCommerce platforms like Etsy, Walmart, and eBay, as well as exploring retail partnerships with big box retailers.

Key metrics for this business include sales growth, customer reviews and ratings, PPC and sponsored ads performance, and social media engagement.

The customer base for this business primarily consists of individuals interested in adult coloring and art supplies. They have a loyal following on social media and a positive rating on Amazon, indicating customer satisfaction and potential for repeat purchases.

BUSINESS MODEL & RESOURCES NEEDED

This business currently has 2 employees, and the owners spend around 20 hours per week managing operations.

THE INDUSTRY

The art supplies industry is a thriving market, with more than 70% of consumers reportedly shopping for art supplies on Amazon. This particular business operates in the adult coloring segment, offering high-quality colored pencil sets that cater to people with conditions like chronic pain and anxiety. The industry has seen success with various products and has opportunities for growth through product expansion and partnerships with big box retailers.

OPPORTUNITIES TO SCALE

The scale opportunities for this business include product expansion, introduction of larger sets or complete pencil sets, and partnerships with big box retailers. Additionally, targeting other eCommerce platforms and increasing marketing efforts can further drive growth. Examples of scale opportunities include launching new SKUs, expanding to international markets, and exploring B2B sales channels.

Asking Price: $2,983,292
Gross Income: $1,670,000
Cash Flow: $745,823
Year Established: 2015
Employees: 2

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