Exploring the Outdoor Trampoline Space with a Proprietary Technical Design: 85% Amazon Sales & 15% Website Sales, with an Average Order Value of $330
This eCommerce company has become a premium recreational trampoline brand, offering trampolines in various sizes, colors, and configurations. They have gained a strong customer following through their emphasis on safety, high-quality materials, and excellent customer service. With 85% of their sales on Amazon and 15% on their Shopify website, the company has achieved gross revenues exceeding $20 million with an average order value of $330. They have also demonstrated significant growth potential by expanding their marketing efforts through social media platforms and influencer campaigns.
OPERATIONS
The company operates on both Amazon and their Shopify website, shipping up to 200 products daily. They have established strong relationships with two manufacturers who produce trampolines based on the company’s proprietary technical and design details. The company’s operations are efficiently managed by a dedicated team, including an operations manager, branding manager, customer service manager, and PPC manager. The owner currently spends as little as 10 hours per week running the business, making it turnkey with potential for further growth.
The company sources their trampolines from two manufacturers who produce trampolines according to the company’s proprietary technical and design details. They maintain up to $2 million in inventory to meet the strong sales demand. The company utilizes Fulfillment By Amazon for fast and efficient delivery. They have optimized their packaging to fit perfectly for Amazon shipments, minimizing package dimensions.
MARKETING AND KEY METRICS
The company has achieved strong sales on Amazon by optimizing their presence on the platform and running PPC ads to reach new customers. They have received over 2,500 positive reviews and have been awarded Amazon’s Choice in the recreational trampoline category. The company also launched their own Shopify website and employs creative digital marketing techniques, such as influencer campaigns and social media platforms, to attract visitors and increase sales. They have already achieved 15% of sales through their website and aim to reach 30%.
The company currently generates 85% of its sales through Amazon and 15% through their Shopify website. They aim to increase website sales to 30% and expand to additional sales platforms, including Walmart and Amazon’s platforms outside the US. By tapping into a growing market and leveraging their strong branding and marketing strategies, the company has significant growth potential in sales and market reach.
The key metrics for this business include gross revenues exceeding $20 million, an average order value of $330, and over 2,500 positive reviews on Amazon. The company aims to increase their website sales to 30% and expand to additional sales platforms, such as Walmart and Amazon’s platforms outside the US. The trampoline market is projected to grow to $3.9 billion by 2026, providing ample opportunities for further growth and market expansion.
The company’s customer base includes parents aged 25-46 who value family time and are looking for fun activities that the whole family can enjoy. Young mothers are particularly concerned about the wellbeing of their children. The company’s strong emphasis on safety, quality, and customer satisfaction resonates with these customers. The company has received over 2,500 positive reviews on Amazon and has a high level of customer satisfaction.
BUSINESS MODEL & RESOURCES NEEDED
The company currently has 5 employees, including a full-time operations manager, branding manager, customer service manager, and PPC manager. The owner spends as little as 10 hours per week running the business. The team efficiently handles daily tasks and ensures smooth operations.
THE INDUSTRY
The trampoline market is rapidly growing, with the global market valued at $3 billion in 2021 and projected to reach $3.9 billion by 2026. The demand for trampolines is driven by families looking for fun and healthy activities, as well as the popularity of trampoline parks. The company’s focus on safety, quality, and unique designs sets it apart in the market. Trampolines are viewed as a great way for families to engage in outdoor activities and for trampoline park operators to offer high-quality, safe, and durable products to their customers.
OPPORTUNITIES TO SCALE
The company has already achieved strong growth, with gross revenues exceeding $20 million. With the trampoline market projected to reach $3.9 billion by 2026, there are ample opportunities for further scale. The company can expand its sales reach by entering new sales platforms and markets, such as Walmart and Amazon’s platforms outside the US. They can also introduce new trampoline models, accessories, or related products to cater to evolving customer demands.
Asking Price: $24,300,000
Gross Income: $21,881,113
Cash Flow: $4,637,679
Year Established: 2021
Employees: 5
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