Massive Ecommerce Retailer in Sporting Goods with 5 Brands: A Stellar Performer
This company is a rapidly expanding ecommerce retailer that primarily sells home and sporting goods on the Amazon.com US website. With 5 proprietary brands, they offer a diverse range of products in various subcategories. The company has experienced a staggering YTD YOY growth rate of 1,048% in sales and is well-positioned for further growth via multiple sales channels, including additional online marketplaces, affiliate marketing, and brick-and-mortar retailers. They utilize the Fulfilled by Amazon (FBA) logistics model, allowing them to focus on product development and scale. This high-growth, scalable business presents an excellent M&A opportunity.
OPERATIONS
The company operates using the Fulfilled by Amazon (FBA) model, where Amazon handles storage, shipping, and customer support. This streamlined approach allows the company to focus on brand and product development, as well as scaling their operations. With a diverse range of products and a strong presence on Amazon.com, the company is well-positioned for continued success and growth.
The company utilizes the Fulfilled by Amazon (FBA) logistics model, which means Amazon handles all aspects of storage, shipping, and customer support. This ensures efficient and reliable supply and logistics operations, allowing the company to focus on product development and scale.
MARKETING AND KEY METRICS
The company’s marketing strategy primarily revolves around leveraging the Amazon.com platform. However, there are opportunities to expand their sales channels to include other online marketplaces like Walmart.com, Jet.com, and eBay.com. Additionally, they can explore affiliate and direct marketing strategies, as well as partnerships with traditional brick-and-mortar retailers.
The primary sales channel for this business is Amazon.com. However, there are plenty of opportunities for growth by expanding into other online marketplaces like Walmart.com, Jet.com, and eBay.com. Additionally, implementing affiliate and direct marketing strategies can help drive traffic and sales. Traditional brick-and-mortar retailers can also be potential sales channels.
Key metrics for this business include sales growth, customer acquisition cost, customer lifetime value, customer satisfaction, and brand recognition. By tracking and optimizing these metrics, the company can ensure ongoing success and identify areas for improvement.
The company’s customer base primarily consists of online shoppers who purchase home and sporting goods. They may have a wide range of demographic profiles and preferences. Building a strong and loyal customer base is crucial for long-term success, which can be achieved through customer satisfaction, excellent product quality, and targeted marketing strategies.
BUSINESS MODEL & RESOURCES NEEDED
The company currently has 4 employees, who are involved in various aspects of the business, including product development, marketing, and customer support. As the company continues to grow, additional hires may be necessary to support increased operations and expansion into new sales channels.
THE INDUSTRY
The ecommerce industry is experiencing rapid growth, driven by the increasing popularity of online shopping. This company operates in the home and sporting goods sector, which is a highly competitive market. However, their focus on developing proprietary brands and leveraging platforms like Amazon.com gives them a competitive edge. Examples of successful ecommerce companies in this industry include Wayfair, Dick’s Sporting Goods, and REI.
OPPORTUNITIES TO SCALE
This business presents significant scale opportunities due to its high-growth nature and scalable operations. Some examples of scale opportunities include expanding into additional online marketplaces, introducing new product lines or brands, implementing targeted marketing campaigns to reach a wider audience, and exploring international markets.
Asking Price: $9,950,000
Gross Income: $11,629,308
Cash Flow: $2,613,253
Year Established: 2016
Employees: 4
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