Premium Digital Audio Retailer: 50/50 Amazon & Website Ecommerce Sales
This online retailer specializes in providing premium digital audio solutions for audiophiles of all skill levels. With a comprehensive lineup of products, they cater to individuals, DJs, B2B clients, and educational institutions. The company achieves a 50-50 split between sales on Amazon and their own website. They hold exclusive distribution rights for top brands and benefit from 25 years of established relationships, resulting in preferential pricing. The business operates with minimal overhead thanks to remote fulfillment and a small warehouse. With strong demand for MIDI synth and a growing interest in retro wave, this business has great growth potential.
OPERATIONS
The company’s operations are split between sales on Amazon and their website. They have exclusive distribution rights for top audio brands and maintain preferential pricing due to long-standing relationships. The business operates with a nearly 100% third-party logistics system and remote fulfillment by Amazon. With a small warehouse as the only physical requirement, the owner has control over the workload, allowing for scalable growth.
This online retailer primarily relies on a third-party logistics system and remote fulfillment by Amazon. They have a small warehouse, which serves as the only physical overhead requirement. This streamlined supply and logistics process allows the business to operate efficiently and keep operating expenses to a minimum.
MARKETING AND KEY METRICS
Marketing for this business primarily relies on word of mouth and organic presence within the music industry. They have a significant email contact database of over 25,000, enabling them to conduct aggressive email marketing campaigns at no additional cost. Paid online marketing investments are minimal, as the business benefits from an already established customer base and strong social presence within their target industry.
The sales channels for this business include Amazon and their own website’s eCommerce platform. With a 50-50 split between these channels, there is room for growth by optimizing sales strategies on both platforms. By leveraging their email contact database, engaging in targeted online marketing campaigns, and expanding product offerings, the business can increase sales and reach a wider customer base.
Key metrics for this business include average ticket value, customer acquisition cost, customer lifetime value, and return on investment for marketing activities. Tracking these metrics allows the company to assess the effectiveness of their marketing strategies, identify areas for improvement, and make data-driven decisions to optimize their operations and growth.
The customer base of this online retailer consists of audiophiles, DJs, B2B clients, and educational institutions. Their products cater to individuals with a passion for high-quality audio, professionals in the music industry, and educational institutions offering audio-related courses or programs. The business has an existing customer base and opportunities to acquire new customers through targeted marketing and expansion into new markets.
BUSINESS MODEL & RESOURCES NEEDED
The company currently has two employees. As the business has been intentionally throttled back, the workload can be adjusted according to the owner’s preferences and needs. Depending on the desired level of expansion, the business can scale up by hiring additional employees or outsourcing certain tasks, such as marketing or customer service.
THE INDUSTRY
The premium digital audio industry is experiencing a resurgence with the growing popularity of retro wave music across multiple mediums. The demand for genuine MIDI synth has increased, creating opportunities for businesses specializing in MIDI and digital audio solutions. Examples of companies in this industry include music equipment retailers, MIDI instrument manufacturers, and audio software developers.
OPPORTUNITIES TO SCALE
This online retailer offers various scale opportunities, including expanding the product lineup with additional brands or introducing white-label/branded offerings. They can also explore partnerships with influencers or other companies in the music industry to expand their reach and attract new customers. Additionally, the business can pursue international expansion by targeting markets with a strong demand for premium digital audio solutions.
Asking Price: $720,000
Gross Income: $1,858,967
Cash Flow: $190,276
Year Established: 1994
Employees: 2
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