High-Margin Amazon FBA Business: Two Brands of Premium Watches and Leather Goods
This Amazon FBA business specializes in the sale of premium watches and leather goods. They operate on two separate Amazon accounts and have two private-label brands. With 60-80% margins on each product, the business has achieved all organic sales. The products are sourced from trusted suppliers based in China and Hong Kong, offering high-quality products at low prices. The business has a catalog of over 1,000 additional products that can be added to the Amazon storefronts. Inventory management is handled by Amazon FBA logistics, allowing for a hands-off operation. The customer base consists of both men and women, primarily in the higher income bracket.
OPERATIONS
The business operates with two separate Amazon accounts, focusing on selling six SKUs of premium watches and leather goods. All products are designed with customized colors, materials, logos, and gift boxes exclusive to the brand. The products are sourced from two trusted suppliers based in China and Hong Kong, who produce high-quality products at low prices. Inventory management and order fulfillment are handled by Amazon FBA logistics, providing a hands-off operational model.
The business sources its products from two trusted suppliers based in China and Hong Kong. The suppliers produce high-quality watches and leather goods at low prices, allowing for significant profit margins. The suppliers have been selected based on their reliability and professionalism. As the products are sold through Amazon FBA, the suppliers ship directly to Amazon, eliminating the need for warehousing inventory and managing staff.
MARKETING AND KEY METRICS
The business relies on organic sales, with no active marketing campaigns currently in place. However, there is an opportunity for the new owner to implement Amazon ads to boost sales and scale profitability. The existing owner has not pursued this option due to time constraints. With a budget for ads available from the Amazon account balances, the business can potentially achieve significant profitability before the next inventory order.
The business primarily sells its products through Amazon’s marketplace. However, there is an opportunity for growth by expanding into other sales channels such as Shopify websites or selling internationally. By diversifying the sales channels, the business can reach a wider audience and increase its customer base. Additionally, implementing effective marketing strategies such as influencer marketing and social media campaigns can drive sales growth and attract new customers.
The key metrics for this Amazon FBA business include sales revenue, profit margins, customer acquisition cost, customer lifetime value, and conversion rates. These metrics are crucial in assessing the financial performance, marketing effectiveness, and customer value of the business. Tracking these metrics allows the owner to make data-driven decisions and optimize various aspects of the business for growth and profitability.
The typical customer base for this business consists of both men and women, primarily in the higher income bracket. While the products are currently male-oriented, many women purchase accessories for their husbands and sons. The customers appreciate the convenience and simplicity of Amazon ordering and shipping. The business aims to provide high-quality, premium watches and leather goods that appeal to customers seeking luxury accessories.
BUSINESS MODEL & RESOURCES NEEDED
The business currently operates with minimal human resources, with only 1 to 2 hours of work required from the owner on a weekly basis. The tasks include reading notifications, staying updated with platform changes, and reordering inventory. As the operational model relies heavily on Amazon FBA logistics, there is no need for office space or employees. The owner is willing to train the buyer for a smooth transition and success in running the business.
THE INDUSTRY
The premium watches and leather goods industry is a competitive market with a high demand for luxury accessories. Consumers in the high-income bracket are willing to invest in high-quality watches and leather goods for personal use or as gifts. Brands in this industry focus on craftsmanship, design, and materials to differentiate themselves. Examples of competitors in this industry include Rolex, Gucci, and Coach. Online platforms like Amazon provide a convenient and accessible channel for consumers to browse and purchase these products.
OPPORTUNITIES TO SCALE
There are several scale opportunities for this Amazon FBA business. By implementing Amazon ads, the business can boost sales and profitability. Additionally, introducing new complementary products to the product line can expand the portfolio and attract a wider customer base. Other scale opportunities include building Shopify websites for both brands, selling internationally, and leveraging influencer marketing and social media campaigns to increase brand awareness and reach.
Asking Price: $1,200,000
Gross Income: $505,299
Cash Flow: $369,065
Year Established: 2020
Employees: 1
- Two Highly Profitable Sports & Fitness Ecommerce Brands For Sale - July 8, 2023
- Branded Ecommerce Company for Baking Goods - July 8, 2023
- Trendy Baby Fashion Retailer Ready to Launch - July 8, 2023
