SBA Pre-Qualified Amazon FBA Ecommerce Brand: Home Decor, Novelty Items, Non-Perishable Foods
This eCommerce business offers a wide variety of home and novelty decor items, such as hats and home accessories, and non-perishable food items. It was launched in 2017 and operates mainly on Amazon through long-term suppliers. The company has built a solid relationship with suppliers based on transparency and honesty. This has helped them to integrate with new products quickly. Automated fulfillment via Amazon has allowed the company to maintain a high-quality product line and fast delivery times. The business maintains an impressive 20%+ profit margin thanks to well-developed SOPs and synergistic supplier relationships.
OPERATIONS
The company is incredibly straightforward to operate and manage, requiring minimal experience or time. Currently, the only employees are an operations manager and a virtual assistant. This business is remarkably hands-off, with the current owner spending only 3 hours per week on tasks. They mainly need to attend to customer service and make situational decisions.
The company has well-established supplier relationships from which they purchase their products. They have built their brand value proposition on transparency, honesty, and integrity. The business is all fulfilled by Amazon, which takes care of storage, packing, and shipping without the need for warehousing. Everything is sold and managed by Amazon Prime.
MARKETING AND KEY METRICS
Despite massive growth with no advertising spend so far, this company has a fantastic scale opportunity in developing advertising campaigns to attract new customers. Another option is to expand off Amazon onto Walmart, Etsy, and eBay. The company enjoys many wholesale arrangements, which makes it great for adjusting the product line to fit market demand. It’s remarkable that it’s maintained its massive growth with minimal advertising spend (currently none)
The business scales primarily through advertising. Currently, they have no advertising spend, which means that investing in a PPC campaign on Google Search or Amazon itself would increase the customer base’s volume, enabling international expansion to Amazon UK and Canada. The business’s massive growth potential means that they could even develop their own brand in the D2C space.
The majority of their products have Minimum Advertising Pricing (MAP) aggressively enforced against other sellers. This ensures the business has substantial longevity. Their cash flow is strong due to rapid inventory shipments and very short lead times. Additionally, the wholesale nature of the business makes it incredibly flexible in terms of adjusting the product line to fit market demand, ensuring profits and upward growth.
This eCommerce business targets consumers in marketplaces like Amazon with an interest in purchasing gifts, home accessories, and novelty decor items. It primarily focuses on niche markets but consists of customers with a broad range of tastes that cater to various lifestyles. In line with profits last year over $395k, the business boasts a high volume of recurring business due to the brand’s favored reputation on Amazon.
BUSINESS MODEL & RESOURCES NEEDED
The business is simple to manage, with the only need for employees being an operations manager and a virtual assistant. A new owner could easily scale management and size by creating a management team in the future to construct more exclusive agreements and make the business more recognizable
THE INDUSTRY
This eCommerce business operates under the Home & Novelty Decor and Non-perishable Food Items category umbrella. The online store specializes in a wide variety of products that currently maintain high-performing revenues. The store operates in several market niches such as home accessories, novelty decor, hats, and much more. Due to its online setup, the market potential is vast across various niches, such as food, home, and entertainment. The business operates primarily on Amazon.
OPPORTUNITIES TO SCALE
The Amazon FBA eCommerce nature of this business enables the owner to work remotely, which allows them to save on operating expenses. Developing an advertising campaign would enable this business to grow significantly by reaching out to more consumers. Scale potential for this business is significant in the international expansion area. They can start selling on Amazon’s global websites in other countries and establish their brand. They can also expand the business off Amazon to Walmart, Etsy, and eBay. Developing a management team could help scale the size and revenue of the business as it establishes even more exclusive agreements with suppliers.
Asking Price: $1,600,000
Gross Income: $2,165,662
Cash Flow: $395,963
Year Established: 2017
Employees: 2
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