Explosive 300% YOY Sales Growth for Baby Accessories Ecommerce Brand – SBA Pre-Approved
This branded consumer products eCommerce company offers a wide range of baby gear & accessories, primarily through Amazon.com. The company has achieved 300% year over year sales growth and operates with strong margins across all SKUs. The company is currently only focused on the Amazon Sales Channel, but with roughly $1,000,000 in annual profits planned for 2020, the business is in the perfect position to begin focusing on additional sales channels, like its branded website, other online channels, and Amazon international. The baby sector is a highly strategic, sought after sector that is one of the top performing categories with the firm.
OPERATIONS
Thanks to their diverse product line, this retailer sees very little seasonality in an evergreen daily-use space, boasting a $21.50 average ticket value year-round, providing stable revenue in an always in-demand space. This eCommerce brand has built itself atop an easy-to-run, low overhead model that requires zero office and warehouse overhead, eliminating the need to deal with large employee or office expenditures. Amazon’s Fulfilled by Amazon (FBA) program is utilized for all pick, pack, and shipping needs, reducing the need to deal with or ship products from its own warehouse. The business is an easy one for any new owner to transition into as inventory management and CSR operations are outsourced, ensuring profitable and seamless operation on day one of acquisition.
Thanks to Amazon’s Fulfilled by Amazon (FBA) program, all pick, pack, and shipping needs for this company are taken care of, reducing the need to deal with or ship products from its own warehouse.
MARKETING AND KEY METRICS
The company focuses on a laser-guided approach to selling, focusing more on making each individual SKU successful, rather than a shotgun approach to see what will work; the result is a highly efficient machine that is easy to manage due to the low average cost of goods and excellent supplier relationships.
With a strong focus on Amazon currently, this business is in the perfect position to expand into its branded website, other online channels, and Amazon international.
This company has achieved 300% year over year sales growth, operating with strong margins across all SKUs, and boasts a $21.50 average ticket value year-round.
The customer base for this baby & accessories eCommerce brand is primarily parents and caretakers of infants or young children, who are seeking high-quality, easily accessible products at an affordable price.
BUSINESS MODEL & RESOURCES NEEDED
Inventory management and CSR operations for this business are outsourced, ensuring profitable and seamless operation on day one of the acquisition. No previous experience with eCommerce is necessary for this business – everything will be trained in detail after closing as part of the transition.
THE INDUSTRY
The baby industry is a highly strategic, sought-after sector that is one of the top-performing categories with the firm. This eCommerce brand dominates the online channel, however, there is significant opportunity to expand into brick & mortar and even into other segment-leading channels such as Jet.com, Wal-mart.com, etc.
OPPORTUNITIES TO SCALE
The branding of this company will allow the expansion of both products and adjacent verticals within the baby segment. Situated for scale in a variety of ways, this brand collection is ready for expansion into almost any international channel and would be any easy addition to the Amazon Europe and Asian markets, wholesale brick & mortar, and even other segment-leading channels such as Jet.com, Wal-mart.com, etc.
Asking Price: $4,150,000
Gross Income: $5,264,032
Cash Flow: $1,064,400
Year Established: 2016
Employees: 2
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