Explosive Year-Over-Year Growth for Amazon FBA Ecommerce Retailer in the DVD Movies & TV Shows Vertical
This successful eCommerce business specializes in selling popular DVDs and Blu Ray discs. With a strong presence on Amazon, the company has gained a reputation for quality products, speedy delivery, and excellent customer service. The average order value is $16.25, and the product line consists of 700-1,200 SKUs ranging from classic movies to popular TV shows. The business has experienced significant growth, with gross revenues surpassing $1.1 million in 2020. The company operates solely on Amazon but has the potential to scale and diversify sales platforms by opening its own Shopify website and exploring other eCommerce marketplaces such as eBay and Etsy. The owner spends 40 hours per week managing the business and employs a part-time virtual assistant. The asking price for this business is $2 million, with a cash flow of $504,107 and a gross income of $1,810,561. It was established in 2016 and currently has 2 employees.
OPERATIONS
The company operates entirely through its Amazon site, with a focus on providing a wide range of DVDs and Blu Ray discs to customers. The owner sources products from reliable and efficient suppliers, utilizing Fulfillment by Amazon for deliveries. The company typically stocks between $150,000 and $250,000 worth of inventory and places new orders every week to ensure quick shipments. The owner spends 40 hours per week managing tasks such as inventory management, purchasing, advertising, and customer inquiries. The business has a 100% positive seller rating on Amazon based on 1,430+ reviews in the past 12 months.
The company relies on three main suppliers for sourcing products, who have been working with the business for years and are known for their reliability and efficiency. The owner keeps a stock of inventory worth between $150,000 and $250,000 and places new orders every week. Utilizing Fulfillment by Amazon allows for quick and efficient deliveries to customers.
MARKETING AND KEY METRICS
The marketing efforts of the business are primarily focused on Amazon, utilizing PPC ads and SEO keyword optimization in product descriptions to drive traffic to the site. However, there are opportunities for further growth by diversifying sales platforms. Opening a Shopify website would allow the business to employ organic marketing tools more effectively, such as launching a blog, utilizing social media, and building an email subscription database. The potential to sell on platforms like eBay and Etsy could also increase profits and expand the customer base.
The primary sales channel for the business is Amazon, which has proven to be highly successful. However, there are opportunities for growth by diversifying sales platforms. Opening a Shopify website would provide a second option for customers to purchase products and allow for the implementation of marketing tactics like email alerts, promotions, and SEO optimization. Additionally, the business could explore selling on platforms like eBay and Etsy to reach a wider customer base.
Key metrics for the business include gross revenues, average order value, number of SKUs, customer reviews, and seller rating. In 2020, the business generated $1.1 million in gross revenue, with an average order value of $16.25. The company currently offers 700-1,200 SKUs and has received 1,430+ positive customer reviews in the past 12 months, resulting in a 100% positive seller rating. These metrics demonstrate the business’s strong performance and customer satisfaction.
The customer base of the business consists of individuals who have a passion for movies and TV shows. The company caters to a wide range of preferences, offering everything from Hollywood classics to box sets of popular TV series. The positive customer reviews and 100% positive seller rating on Amazon demonstrate the satisfaction of the customer base.
BUSINESS MODEL & RESOURCES NEEDED
The owner of the business spends 40 hours per week managing tasks such as inventory management, purchasing, advertising, and customer inquiries. In addition, a part-time virtual assistant is employed to handle tasks like creating product bundles and running product files. The owner is willing to stay on post-acquisition in an advisory role.
THE INDUSTRY
The DVD Movies & TV Shows industry is a highly profitable market with a global market size exceeding $16 billion. The company specializes in the sale of popular movies and TV shows on DVDs and Blu Ray discs, catering to the public’s ongoing passion for visual media. With the rise of online shopping and the shift in consumer behavior, the business has benefited greatly from the convenience and accessibility of eCommerce platforms like Amazon. Examples of popular products in this industry include Hollywood classic movies, box sets of TV series, and film series like Lord of the Rings.
OPPORTUNITIES TO SCALE
There are significant scale opportunities for this business. By diversifying sales platforms and opening a Shopify website, the company can expand its customer base and increase profits. The business could also consider selling on platforms like eBay and Etsy to reach a wider audience. Additionally, continuously adding to the product line and offering new arrivals can upsell to the existing customer base. With the right marketing strategies, the business has the potential to double or even triple profits.
Asking Price: $2,000,000
Gross Income: $1,810,561
Cash Flow: $504,107
Year Established: 2016
Employees: 2
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