Website Closers® presents a 15-year-old Amazon FBA Company that has exhibited stable growth and profitability since its inception. It includes four brands in the Party Supplies Niche, each offering a comprehensive selection of products sought by a broad customer base.
The company has been prequalified for SBA Lending by our lending partners. This will allow a qualified buyer to purchase this business for as little as 10% down, with the SBA loan amortized over a 10 year period at attractive interest rates.
Core products driving sales include dress-up and birthday party items for children, household parties, and special occasion items for adults. As the 1,300 daily unit sales attests, these are highly stable markets.
Business Broker Takeaway
Our analysis of this business shows that the value propositions present are strong for a buyer looking to get into this niche. We are excited about this business for three important reasons:
Intellectual Property: An in-house team designs all products branded by four trademarks. The design team is highly proficient and tuned in to the target demographic, optimizing products accordingly.
Cost-Effective Team: A low-cost, exceptionally data-driven team of 6 individuals based in Pakistan are highly qualified in all aspects of the Amazon marketplace. They provide 24-hour support and monitoring of the Seller Accounts, helping optimize all listings, enhance the quality of images, and execute strategic Ad campaigns. They manage vendors, SEO, and cost optimization, removing low-margin or outdated products. The team focuses on business automation and growth creation with their exceptional eCommerce skill set, providing a one-stop service solution for all the company’s brands.
Astute Product Selection. Management prioritizes star products, brand awareness, and new product introductions. Approximately 500 active SKUs are maintained at any given time, and 30 new SKUs are created and listed annually to keep the catalog up to date and in demand.
Inventory & Logistics
The business imports all products from Asia to a domestic 3PL, from where 50 truckloads are sent to Amazon FBA facilities each year. Management places large volume orders every second month to take advantage of discounted prices, boosting margins. Proprietary software is utilized to manage stock, enabling them to optimize advertising, profitability, and inventory.
As a result, logistical costs in the entire delivery system are reduced, stockouts are minimized, and customer satisfaction is improved, evidenced by approximately 100,000-lifetime reviews with an average rating of 4.8 stars.
Marketing
A highly effective yet uncomplicated strategy focuses on Amazon PPC and AMS. Through years of experience, the management team has observed that customers in the niche are more loyal to Amazon Prime than a brand. Therefore, they emphasize maintaining top ranks in the categories in which they sell through optimized listings, quality images, and outstanding A+ Content. The proof is in the pudding, with an average advertising cost of sales of 10%.
Although the archetypal customer is a middle-aged female with children, the various brands appeal to individuals of all ages and genders, making virtually every shopper a prospective customer.
Team & Workload
The core team that handles the bulk of daily operations includes a general and supply chain manager, a head of logistics, a marketing manager, and a photographer.
Given the systemized nature of the business, the owners dedicate only two hours weekly to operational reviews and eight hours each month reviewing financials to maintain a high standard of compliance. Strategic evaluation and direction are performed quarterly.
Growth Strategy
Recently, the owners have placed emphasis on several growth initiatives, setting a prospective buyer up for an immediate boost in top and bottom-line growth. 40 SKUs have been selected for image redesigning, and another 12 have been finalized, awaiting sample approval. The team is expanding the brands’ Walmart presence to increase diversity in sales channels and has initiated Sponsored Display campaigns to reach new customers. They are also working on 20 new SKUs in the Party Favors and Costumes niches.
The party supplies market is anticipated to experience considerable growth, offering a new owner the opportunity to acquire a thriving and proven business poised for continued success.
