Explosive Growth for High Velocity Bedding Brand Ecommerce Retailer
This eCommerce retailer is a high-velocity online bedding brand that has achieved Best Seller status and 4.5-star reviews on Amazon. They concentrate on a specific marketplace niche, which makes inventory decisions and marketing parameters easy to define and manage. The company generates organic traffic and uses Google Ads, Facebook, Amazon Marketing Services, and Sponsored Ads to generate revenue.
OPERATIONS
This organically-built retailer, which is supported by a hybrid back end platform, is well-managed from logistics to customer service to administrative tasks. About 40% of inventory is held at Amazon (fulfilled by Amazon – FBA) and the balance warehoused at a 3PL to ensure efficiencies in storage fees.
This hybrid back-end platform ensures that efficiencies in storage fees are covered with roughly 40% of inventory held at Amazon (fulfilled by Amazon – FBA) while the balance of inventory is held at a third-party logistics company (3PL).
MARKETING AND KEY METRICS
The company uses several tactics to generate traffic through Google Ads, Facebook, Amazon Marketing Services, and Sponsored Ads to thrive on organic traffic.
This business currently generates over 95% of sales from Amazon storefront with additional trickle sales from an eBay storefront and the company’s website. The company may increase growth by expanding into international and website sales as well as other online channels like Walmart.
This business is experiencing tremendous growth, with a 300%+ year-over-year growth rate. This means that the company may achieve scale opportunities in multiple directions if capital infusion is secured.
The company’s customer base is predominantly online, through Amazon, eBay, and their company website.
BUSINESS MODEL & RESOURCES NEEDED
This retailer has a solid team to handle logistics, customer service, and administrative tasks.
THE INDUSTRY
This business operates in the bedding industry, with a focus on a specific marketplace niche of products. With eight years of sales history and advertising in the category, moving into adjacent verticals becomes much easier.
OPPORTUNITIES TO SCALE
With Amazon marketplace standing, this business may lend credence when scaling to other online channels like Walmart and international channels. From every angle, this business is a choice acquisition regardless of segment or experience level.
Asking Price: $30,050,000
Gross Income: $30,943,010
Cash Flow: $6,246,629
Year Established: 2012
Employees: 4
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