Explosive Amazon FBA Ecommerce Brand: Wall Posters with 90% Gross Margins, $12 AOV, 21 SKUs & IP in Place
Website Closers presents a thriving eCommerce business that designs and sells proprietary wall posters. The company focuses on creating inspirational and school-focused posters that appeal to a broad audience in the US and Canadian markets. With 21 SKUs and an AOV of $12, the business has achieved impressive 90% gross margins.
OPERATIONS
The business follows a strategic process to create new products, including reviewing best-selling posters on Amazon, identifying high-volume search terms, and seeking inspiration from other selling platforms like Etsy. The business has printers in the US and China and uses rigid mailers purchased from US vendors to pack posters. The owner manages inventory levels, forecasts demand, optimizes ad campaigns, and coordinates with suppliers.
The business has printers in the US and China, allowing for printing posters in bulk in China at a lower cost, as well as quickly bringing new products to market and testing them on Amazon using a US printer. Posters are packed in rigid mailers and sent to Amazon facilities. A secondary printer in China serves as a backup supplier.
MARKETING AND KEY METRICS
The business primarily relies on Sponsored Ads and listing optimization to drive traffic to its product listings on Amazon. No off-Amazon marketing efforts are used.
The business has the opportunity to expand its sales channels by selling on platforms like Etsy, Walmart, and its own Shopify-built website. This would allow the brand to reach millions of prospective customers and begin marketing efforts off-Amazon.
The key metrics for this business include 90% gross margins, an average order value (AOV) of $12, and a product lineup of 21 SKUs. The business maintains inventory levels at Amazon FBA warehouses and a domestic warehouse, and aims to keep three to six months of inventory in stock.
The customer base for this business is highly varied, as the posters reach a broad audience. The demographic includes individuals interested in home decor, inspirational quotes, and school-related themes.
BUSINESS MODEL & RESOURCES NEEDED
No employees or contractors are required to operate this business, demonstrating its high level of efficiency and systemization.
THE INDUSTRY
The eCommerce industry for wall posters is highly competitive, but this business has carved out a niche by focusing on proprietary designs and targeting specific themes. Examples of other companies in the industry include Poster Revolution, AllPosters, and Great Big Canvas. The market for wall posters is driven by consumer demand for home decor and personal expression, with a strong presence in online marketplaces like Amazon, Etsy, and Walmart.
OPPORTUNITIES TO SCALE
There are several scale opportunities for this business, including adding new designs and themes, testing canvas print options, researching high-volume search phrases for enhanced PPC advertising and listing optimization, expanding to new categories and themes, and exploring international expansion. Examples of scale opportunities include translating posters for non-English speaking markets and expanding to other online sales channels.
Asking Price: $615,000
Gross Income: $543,022
Cash Flow: $202,235
Year Established: 2018
Employees: 0
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