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15 Year Sports Apparel Brand – Amazon & eBay Marketplace Sales Channels – 20% Net Margins on 10,000+ SKUs

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Websites Closers® presents an eCommerce Brand with a sizeable presence in the Sports Apparel Space, an enormously popular one that attracts millions of customers every year. Operating primarily on Amazon and eBay, this company has excelled at attracting high sales and customer loyalty through their offerings of name brand sports apparel, caps, backpacks, dress shirts and other items.  Over the course of nearly two decades, the company has built up a highly diverse product line, and they now have an impressive sales history to match with consistent 20% net margins, a rate that is well above the average within this industry. With active sales on 30,000+ Amazon SKUs, they have sold 360,000+ units in the past year, a stunning achievement.  This has given the company a firm edge over competitors in this lucrative space, with their high volume and established trust from buyers.

The company is operating within a market that is evergreen and getting stronger. This brand, like many others, got stronger during the Covid-19 lockdowns in 2020 that turned millions of consumers to online purchasing, a trend that has only accelerated since then. The global sportswear market was valued at $362 billion in 2021, with projections that it will grow to $544 billion by 2026. In 2020, this market truly started to accelerate the sale of athleisure wears, with sales rising by 70%-80% in some countries.

Sports apparel has widespread appeal for a lot of reasons. Sports is a major social gathering for millions of people, who love to wear this kind of apparel to show others who they’re rooting for. Sports apparel can also be a unique way of showing people where you come from by highlighting your favorite local team. Athletic wear remains one of the hottest fashion trends as well, enormously popular as running gear and workout clothes and leggings. As millions of people came out of the pandemic pledged to get healthier and more physically fit, these sales have only gotten stronger. The brand, of course, understood this and has demonstrated impeccably strong judgment in building up their loyal customer base.

The brand has operated at a high production level. First launched in 2007, the brand has used the popular eCommerce platforms Amazon and eBay for listing their SKUs, with Amazon being the leading (90%) sales platform for them. Customer orders are conveniently fulfilled at either their warehouse facility or through Amazon’s fulfillment centers.

The company utilizes a network of 7 distributors of well-known, household apparel brands, and this supplier relationship has been enormously successful for them, since each distributor offers a unique product portfolio giving them access to thousands of available items.

Their method for selecting which of those SKUs to list involves cross referencing top selling items on Amazon with products available through their distributors. That process gives them a list of items with high profitability.  Today, the company has 30,000+ active SKUs on Amazon, and their 360,000+ sales totaled $11 million in 2020 and $14 million in 2021. With their $40 Average Order Value, the company’s sales remain steady and very healthy. The product line is diverse enough that sales of particular items shift during the seasons, with beanies selling especially well during the winter months, while sales of golf polos and shorts peak during the summer. In late summer, the company does exceptionally well selling back packs to families with kids heading back to school.

While the brand sells primarily in the U.S., they do have a growing number of overseas customers, primarily on eBay. This diversified mix has given them a stable revenue stream and they are not reliant on a single distributor or brand. Likewise, their top selling item, a winter beanie, represents just 6.5% of sales, so no small handful of items dominate revenues.

Sales are promoted without a marketing budget. To build their thriving customer base, the company has not used any digital marketing, and has relied instead on selective sponsored ads on their listings. The company has mostly been able to rely on the search engines on Amazon and eBay to bring their listings to the top of search results, and this method has proven to be very successful for them. On eBay, the company now enjoys a 40% Repeat Customer Rate, while on Amazon, they have numerous products listed as an Amazon’s Choice No. 1 Best Seller in the popular Clothing, Shoes & Jewelry and Sports & Outdoors categories.

Operations are smoothly and efficiently run through their experienced five full-time employees. They include a team lead, product management specialist, primary packer, merchant fulfilled order packer, and FBA shipment coordinator. This brand provides a buyer with enormous strengths, operating as it does in a highly profitable industry, and having developed a thriving product portfolio that continues to drive sales higher. They have been approved to market many top brands that virtually sell themselves, and their experienced team is available to handle daily operations for a new owner.

This Company is Represented by:

WebsiteClosers.com

Tech, Internet & eCommerce Business Brokers

WC 2802

Asking Price
$ 11,000,000
Cash Flow
$ 3,152,207
Gross Income
$ 13,907,664
Year Established
2007
Employees
5

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