Launching a Profitable Children’s Toy and Kitchen Brand on Amazon FBA
This eCommerce Brand operates in Toys and Kitchen categories providing unique and high-quality toys and kitchen tools. It has a strong seller rating of 5 stars with 740 ratings on Amazon. The business represents a great opportunity for a buyer looking to get into eCommerce but not start up their own brand from scratch. The small number of SKU’s makes this an easy business to manage with only 20 hours of work per week required. The business uses a laser-guided approach to brand and SKU development with 7 virtual assistants and an owner ready to teach the Amazon Way for 3rd party sellers.
OPERATIONS
The company offers 12 individualized and carefully selected SKUs, each sourced from China, branded, and retail-ready that are priced at an average order value of $21.51. The company has two key suppliers and two backup suppliers, with five new products expected to be released in the summer of 2020. All products are fulfilled by Amazon, eliminating the need for any warehouse space, workers, and other inventory storing requirements.
The company has two main suppliers and two backup suppliers with established relationships and are currently working on new products for launch this summer. The company uses a 100% Fulfilled by Amazon (FBA) model and requires no warehouse space, neither do they face the challenge of warehousing and storing their own inventory.
MARKETING AND KEY METRICS
Marketing has been focused heavily on Amazon PPC, Facebook ads, Instagram ads, email blasts, and postcards. All sales are directed to Amazon, with all products included in Prime delivery. The company has achieved Best Seller and Amazon’s Choice Badges across its ASIN assortment due to an ingenious laser-targeted approach towards brand and SKU development. The company enjoys many Amazon Choice Badges (badge ownership varies from day to day).
All sales are directed to Amazon, where all the products are included in Prime delivery. With the potential expansion to other retail platforms like Shopify, Walmart, and eBay, the company’s future looks bright.
The company’s scale opportunity involves expansion to international Amazon channels and other platforms, including Shopify, Walmart, and eBay. The company has enjoyed a growing trend in run rate over the past few years along with unique products in the kitchen and toys niches.
The business provides unique products in the kitchen and toys niches, garnering a loyal customer base for consistent sales. The company has enjoyed a 5-star rating with 740 ratings, garnering a strong customer base on Amazon.
BUSINESS MODEL & RESOURCES NEEDED
The company is efficiently managed with only 20 hours of work required per week, making it a turnkey business for anyone who wants to manage and operate a successful eCommerce brand without much hassle. The company has seven virtual assistants who work remotely from various corners of the world, making for easy anytime-anywhere accessibility of business operations.
THE INDUSTRY
As a progressive eCommerce Brand, operating in both toys and kitchen verticals, the company holds a significant position in the retail industry. Toy giants such as Mattel and Hasbro are always innovating and expanding their product line. The market for kitchen products, on the other hand, is rapidly increasing with new technologies and innovations being introduced daily, leading to a rise in demand for new and modern kitchen tools.
OPPORTUNITIES TO SCALE
The company has an excellent scope for growth with expansion into international business channels. The current business operations have shown an increasing growth trend, with a 50% increase in SKU’s already created, sourced, and ready to go. The addition of new products in the kitchen and toy lines, developing new offerings, and engaging brand ambassadors or influencers can help to take the business to the next level.
Asking Price: $1,400,000
Gross Income: $1,418,832
Cash Flow: $360,000
Year Established: 2016
Employees: 7
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