Website Closers® presents an exciting opportunity to purchase a high growth Board Games company with a strategy alliance in Shanghai. This eCommerce Retailer has been in Business for 17 Years and is primarily an Amazon FBA Retailer, using the power of Amazon to further develop its product offerings and growth profile. Scale has been constant in this online business with another 20-25% growth planned for 2021 despite the fact that board games were the go-to home remedy for many during stay-at-home orders, resulting in phenomenal 2020 results. While 2020 certainly was an incredible year for companies that sell board games, this particular business was able to solidify its position on Amazon as a clear leader in the space, allowing it to grow even further going forward, despite the high bar set in 2020.
The company operates in several sectors within Classic, International and Traditional Board Games. With 4 in-house brands under management, the board games created by this business are known for their quality in not only materials, but also presentation. Add to that their defensive moat brought on by position ranking on Amazon’s search algorithm (A9), and you begin to see that the growth in this business is only yet begun.
In addition to board games, and because of the company’s lucrative, long term relationships with a number of Asian and European Suppliers, the company has started to expand its imports business from not just board games, but into classic Chinese Hardware for Furniture Restoration, Architectural and Interior Design projects; elegant European-Style Wood-Crafted Chess Sets; and unique Storage Solutions.
Carrying such versatile and unique product offerings has allowed this business to drive revenue and growth over their more than 17 years in Retail. The aforementioned vendor relationships are important for product development – there is a seamless and swift SKU expansion system in place with highly enviable payment terms. This company already stands at the top of each of its industries, however, there is immediate opportunities lined up for scale – and these vendors relationships are the key to it all. They are hard to get, and highly valuable. The company is able to prototype fast and maintain strict controls over Quality and Supply Chain through its China operation located in Shanghai. The advantage of this piece of the operation is being in the same time zone as its manufacturers and having a local team and facilities. Sourcing via this Chinese-based purchasing team secures better pricing, terms, manufacturer selection, and relations. Quality Control for all manufacturers are performed at a single point in the Shanghai facility before given added value, packaging, labeling, and other prep work. The products are stored and loaded on bi-weekly container shipments, direct to Amazon FBA, as needed for regular replenishment.
This company’s growth would be even more pronounced but for the multitude of supply chain and logistics issues that have come up since the Pandemic and impacted all import businesses, which has bled into 2021. Additionally, the company outperformed in December and January, causing a further constraint on inventory holdings. The company has recently taken matters into its own hands, which will result in a return to normal inventory levels within the next couple of months. The company’s products sell so quickly that managing inventory is a top priority.
With many new SKUs already in the pipeline, the wheels have already started to turn for additional growth. This business can be scaled through further channel development, where there is a very big opportunity to sell at Walmart, Target, and other online retailers, as well as to expand into wholesale. There are thousands of toy and game stores around the United States, and many of the products supplied by this company would do well within. Further expansion could be borne from in-house game development (Board Game Incubation), and influencer/affiliate marketing. Board Game Incubation is a very real opportunity given since this business has strong ties to those in the design, development and manufacture of games in Asia and Europe … making the launch of an idea far easier, faster and more efficient than what others would face without help.
Each of these brands deliver their own Average Order Value with the highest being $67.29 and the lowest at $46.77; as a leading player across each of their industries, these brands are bringing in higher than average AOVs, making them great opportunities for influencers and affiliates. Differentiating themselves through variety, quality and manufacturing infrastructure and contacts, this seller has extremely low SKU concentration and boundless opportunities to scale. This lowers the risk profile of the business and increases its overall valuation.
Each of the brands carry an Amazon.com rating above 98% positive lifetime ratings. Additionally, these brands sell through their own branded websites as well as eBay, another large marketplace in the Game Boards space … but these channels are minimal compared to Amazon. They currently only deploy advertising with Amazon.com and their branded Shopify Websites. Working with an outside marketing agency for each platform, this business generates strong, scalable traffic and conversions through varied campaigns.
As a market leader, this company could also establish themselves as a go-to source for information and advice within their fields. Information can drive traffic – and this traffic can be monetized in many ways. As interactive and high-quality product providers, this company would do remarkably well on platforms such as Instagram, Facebook, YouTube, and Pinterest, which would ultimately drive additional revenue. Finally, there is an increasingly impactful pull that influencers and micro-influencers have across the digital space, partnering with content creators like these would draw unimaginable traffic and awareness.
Along with this company’s vast vendor and resource network, this acquisition comes with incomparable lifetime advantages. This business has participated in a multitude of gaming tournaments over the last 17 years in order to build up both brand awareness and community foundation. The buyer gets all of this goodwill through this dynamic acquisition.
An early adapter and trend setter across their many verticals, this company is widely recognized for its business prowess, integrity, and quality. Their long history of success and reliability is sure to be an asset to any new owner. This company has 20 employees who are all coordinated and managed by current ownership. Employing workers in both China and the Philippines, including a Warehouse and QC Manager, a Purchasing Manager, a Bookkeeper, a Logistics specialist, a Graphic Designer / Photographer / Videographer, IT / Developer, 9 Warehouse Employees (China), an Executive Assistant, a Content and Marketing Manager, and 2 Customer Service Representatives.
An unimaginably promising and entirely established opportunity, these 4 brands offer lasting success and fantastic margins to any capable buyer. As a leader in multiple industries, this acquisition is an investment with phenomenal competitive advantage and brand awareness. This business is the opportunity of a lifetime for any business-minded buyer.
