Explosive Eco-Friendly Home Kitchen Brand with 70% YOY Revenue Growth and Tens of Thousands of Reviews
This 7-year-old eco-friendly brand offers a wide range of green alternatives for everyday items in the home and kitchen, as well as hygiene essentials. With over 100 SKUs, the brand has gained over tens of thousands of reviews. Their sales are done exclusively on Amazon, generating 70% YoY growth in 2022 and boasting a 96% Positive Lifetime Seller Rating. They have a low concentration of sales among their SKUs and see very little seasonality. With strong supplier relationships, they are highly set up for potential international expansion.
OPERATIONS
The owners work roughly 25 combined hours per week, monitoring inventory levels, maintaining supplier relationships, placing shipments, and managing advertising campaigns. They have established strong relationships with reputable manufacturers who supply a consistent stream of the highest quality products to clarify future expansion. This structured workflow has set up the business in a way that can easily handle a boost in sales from future expansion.
The company has cultivated strong, long-lasting relationships with reputable manufacturers that provide the highest quality products consistently. They have formed a catalog of over 100 excellent SKUs, to ensure a variety of options for the company’s customer base. Their relationships with suppliers help lay the foundation for any potential international expansion.
MARKETING AND KEY METRICS
75% of their revenue comes from organic traffic. They generate a ROAS of about 450% through Amazon PPC campaigns (Sponsored Ads). They have a low concentration of sales among their SKUs, which would benefit from improved advertising, specifically through the implementation of affiliate marketing to scale the business. Social media marketing would be an ideal approach for this business, especially pushed by influencers on platforms like TikTok and Instagram.
All sales are conducted through Amazon, where the company has a brilliant reputation with a 96% Positive Lifetime Seller Rating. However, there are opportunities to explore subscription boxes to generate more consistent cash flow, raise their Repeat Customer Rate and expand their customer base. The mass retail and wholesale markets have yet to be explored, offering further opportunities to expand the business.
70% YoY growth and a 96% Positive Lifetime Seller Rating. Strong organic traffic, generating 75% of revenue. ROAS is about 450% through Amazon Sponsored Ads, with a low concentration of sales among SKUs. No seasonality keeps cash flow, inventory, and orders simple and straightforward.
The company’s affordable $15 Average Order Value coupled with their accessible products have been the backbone of their success. They cater to both standard Amazon shoppers and small business owners within the restaurant industry looking for utensils or other eco-friendly items for their homes and businesses.
BUSINESS MODEL & RESOURCES NEEDED
There are no employees outside of the owners, allowing the workload to be adjusted as necessary if buyers desire it. Since the structural operations are manageable and practical, it makes adding staff a simple decision in case the workload ever requires it in the future.
THE INDUSTRY
This product offering is best suited for the eco-friendly industry that values sustainability and compostable materials. This business offers a variety of green products, including cutlery, drinking glasses, chopsticks, and other bamboo and disposable wood items. They also provide products aimed at hygiene, including disposable bibs, gloves, and aprons. The company is a one-stop-shop for discerning consumers that choose to focus on products that help sustain the environment.
OPPORTUNITIES TO SCALE
There is an opportunity to improve advertising, primarily through affiliate marketing and social media marketing. Subscription boxes have also proven to do well within this niche and could be another source of consistent cash flow. Additional secondary sales channels such as the wholesale market and restaurant industry make for clever moves for the buyer. Implementing subscription options would also raise their Repeat Customer Rate, which, if supplemented with new partnerships and additional SKUs, would drastically expand their customer base.
Asking Price: $3,750,000
Gross Income: $4,555,285
Cash Flow: $862,471
Year Established: 2015
Employees: 0
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