Organic Ecommerce Business in Video Game Products & Accessories with 70% YOY Growth
This eCommerce business specializes in selling video gaming products and accessories. With a focus on organic sales and no ad spend, the business has experienced a 70% year-over-year growth rate. The company offers a wide range of gaming products from popular brands like Sony, Microsoft, and Nintendo. They have built a strong reputation on their current sales channel and have received consistent positive ratings. The business has streamlined operations to maximize profits while keeping costs low. With the potential for brand partnerships, SEO campaigns, and social media marketing, there are ample opportunities for growth. The business is represented by WebsiteClosers.com.
OPERATIONS
The operations of this eCommerce business involve product ordering, shipping, shipment scheduling, and customer relations. The business is owner-operated, with the owner dedicating approximately 30 hours per week to these tasks. The operations are efficient and require minimal training for future owners. There is potential to hire a small staff to delegate tasks and expand the business’s capabilities.
The supply and logistics of this business are streamlined to minimize costs. All shipping is completed in-house, and the inventory storage requirements are minimal. The business operates on an on-demand model, holding inventory for a short period before shipping it to customers. Introducing new vendor networks and partnering with a third-party logistics provider could further enhance supply chain efficiency.
MARKETING AND KEY METRICS
The business currently relies on organic sales and has not invested in paid advertising. However, there are opportunities for marketing expansion. This could include brand partnerships, SEO campaigns, social media marketing, and paid advertising initiatives. Collaborating with notable members of the gaming community and online influencers through brand sponsorships could help broaden the business’s reach. Gaming conventions could also be utilized for additional promotion.
The business currently operates primarily on the Amazon sales channel. However, there is potential to expand sales practices and establish a dedicated e-commerce website. Leveraging the business’s searchability and growth potential, sales can be increased by engaging in both Amazon and independent platform sales. This would effectively double the business’s yearly intake.
Key metrics for this eCommerce business include average order value, number of orders fulfilled per day, and lifetime review rating on Amazon. The average order value is $115, and approximately 50 orders are fulfilled each day. The business has a positive lifetime review rating of 89% on Amazon, indicating customer satisfaction.
The customer base of this eCommerce business primarily consists of video game enthusiasts and consumers interested in gaming products and accessories. With a wide range of product offerings from popular brands, the business attracts a diverse consumer demographic. The positive lifetime review rating of 89% on Amazon indicates a satisfied customer base.
BUSINESS MODEL & RESOURCES NEEDED
As an owner-operated business, the current owner dedicates an estimated 30 hours per week to the operations. The business could benefit from hiring a small staff to delegate tasks and expand its capabilities. With minimal training required, the business is easily scalable in terms of human resources.
THE INDUSTRY
The video gaming industry has experienced significant growth in recent years, with revenue expected to reach $180 billion this year alone. Console and PC games account for over 40% of the industry’s earnings. The industry has seen increased interest and engagement across diverse demographics, with people playing games at various ages and no longer split along gender lines. Streaming has also contributed to the industry’s growth, providing opportunities for players to monetize their gameplay. Examples of companies in the video gaming industry include Sony, Microsoft, and Nintendo.
OPPORTUNITIES TO SCALE
There are several scale opportunities for this eCommerce business. Firstly, it can explore new brand partnerships to expand product offerings and increase margins. This could include collaborations with notable gaming community members and online influencers through brand sponsorships. Additionally, the business can optimize SEO, social media marketing, and paid advertising to reach a wider audience. Proprietary branding on existing SKUs and the development of wholesale offerings can improve the supply chain and drive extended profits.
Asking Price: $725,000
Gross Income: $3,505,655
Cash Flow: $258,952
Year Established: 2014
Employees: 1
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