Explosive YOY Growth in Branded Optics Line Selling on Amazon
This highly successful, Branded Amazon Retailer sells a highly streamlined and profitable proprietary lineup of optics via Amazon, offering segment-core products branded in-house at deep-discount prices vs. big-brand competitors, making it highly competitive both online and in big box retailers. Using a 100% Amazon FBA-fulfilled e-commerce model, this exciting company has realized profit and growth rapidly in a high-margin, nearly no-overhead model that maximizes profits and minimizes OPEX.
OPERATIONS
Utilizing a high-speed, low drag product lineup of products that can’t be sold by anyone else, this business enjoys guaranteed Buy Box positioning and NO ASIN Merges. Comprised of product types that occupy a vast majority of this segment’s product mix and with a five-star rated Amazon Seller Central account that includes zero-maintenance FBA drop-ship, this business is poised to hit the ground running as either a strategic acquisition or individual proprietorship.
The supply chain for this business is based on product sourced directly from partners overseas. Using Amazon FBA as a fulfillment center has eliminated the need for a brick and mortar warehouse and allows for scalability without logistical headaches.
MARKETING AND KEY METRICS
This Amazon Retailer uses the world’s largest marketplace as its primary sales channel. Marketing efforts include ensuring product listings are optimized and Amazon PPC ads are used when appropriate. The brand’s focus on high-quality products and competitive pricing has led to a strong organic following with a high percentage of repeat customers.
The primary sales channel for this business is Amazon, which has provided massive year-over-year growth. This business could benefit from expansion into additional sales channels, such as selling on the brand’s website or via third-party marketplaces, such as Walmart.com or eBay.
Important metrics for this business include gross revenue, net income, customer acquisition cost, conversion rates, and return on ad spend.
The customer base for this business consists primarily of outdoor enthusiasts and hunters. The brand’s focus on providing high-quality products at competitive prices has led to a high percentage of repeat customers and strong word-of-mouth referrals.
BUSINESS MODEL & RESOURCES NEEDED
As a primarily e-commerce business, this company employs a single individual responsible for order management and customer service. As the business grows, additional staff will likely be required to fill in gaps and streamline the operation.
THE INDUSTRY
The optics industry has grown significantly over the last several years as outdoor recreation has become increasingly popular. As a result, there are many new entrants into the space. Established players in this industry, such as Bushnell, sell similar products to this Amazon Retailer at a much higher price point.
OPPORTUNITIES TO SCALE
This Amazon Retailer has a highly scalable business model that can easily be expanded into new product lines and categories. Additionally, there’s a significant opportunity to expand into new geographic markets, such as the European Union or Canada.
Asking Price: $1,675,000
Gross Income: $1,426,995
Cash Flow: $478,396
Year Established: 2013
Employees: 1
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