Website Closers® presents an SBA Pre-Qualified Business that has been in business for 23 years, becoming a strategic leader in the Chess Products, Software & Training Vertical. Establishing over 2 decades of consistent success, this company carries a dedicated customer base along with strong relationships across eCommerce giants such as Amazon to stand as one of the most popular sites for chess products, sets, and online training and education anywhere on the Internet. Generating more than $1 Billion in revenue in 2020 alone, this industry is experiencing rapid growth due to the rise of widespread media adulation and innovative chess technology. Spearheading this growth industry, this chess hub has grown exponentially with the rising global interest in chess, excitement which shows no signs of slowing.
This company has garnered widespread recognition within the worldwide chess market since its launch on the Internet chess community in 1998. Labeled an innovator across the industry, this brand has become an invaluable agency of information for chess players, whether they are beginners or advanced. This company offers an extensive chess product line like ornate chess sets, durable travel sets of all sizes, tournament clocks and necessities, training videos, chess playing software, training software, and more.
The business has been serving the chess community since the late ‘90s, and has become one of the most popular websites for products and information. The mission has always been to provide the most comprehensive chess product line and informational resource on the planet. Cutting edge products and books (paper and digital) help drive awareness and education on improving chess playing performance. Products and information are provided for every skill level, with constant and consistent updates.
The business has been analyzed thoroughly and is pre-approved for lending by our lending partners. This will allow a qualified buyer to purchase this business for as little as 10% down, amortized over an entire decade. What a rare opportunity to acquire an Internet Company that has been in business for decades for just 10% down.
Relying primarily on organic traffic, this leaves tremendous room for growth through the development of PPC marketing, the addition of more products and services, and an extension onto Amazon international. Harnessing a serviceable business framework along with an unrivaled standing on Amazon.com that could be augmented by improved use of other platforms such as Facebook Marketplace and Etsy.
Products like books, chess sets, chess computers, pieces and boards, clocks, and supplies such as bags and scorebooks aid the company in maintaining a strategic balance in comprehensive industry connections along with longstanding business channels. Its modern offerings include digital products such as chess software, eBooks, videos to download, online courses, and training manuals – these cater to savvy younger audience members and create new revenue opportunities among loyal long-standing customers. Looking to educate themselves on the joys of chess or improve their skills, new customers have access to a large amount of content on the company’s well optimized website, perfectly positioned for organic interface.
Earning an average order value of $83.95 across its more than 2,000 SKUs, this company is ensured to deliver reliable, enviable profits. In fact, their revenue levels have seen steady and consistent increase. With an unrivaled reputation in its niche, this business has attracted glowing reviews and a rare 99% positive lifetime Amazon seller rating. As more than 85% of their current sales occur through Amazon, this factor alone amounts to a strong competitive advantage for any incoming buyer.
This company’s chess sets currently make up 60% of the company’s sales while their chess software generates an additional 30%. Leveraging a strong delivery model, their products are stocked by the company and shipped directly to Amazon for FBA delivery services. Attesting its growth to organic and word of mouth channels, steadily increasing numbers, and glowing testimonials from repeat customers prove the efficacy of their products and outreach. They saw a sharp uptick in sales in 2020 with the rollout of 5G, the live streaming of chess events, and online chess servers.
After decades in this lucrative industry, the business now has a worldwide reputation that can be effectively leveraged for international supply chain and sales opportunities. No longer searching for new products sources, cutting-edge SKUs are consistently being offered to them from manufacturers in the U.S., China, Poland, and India. Moving toward platforms in promising markets such as the UK, EU, Mexico, and Canada would also help take full advantage of this globally recognized brand’s reputation.
Additionally, it is important to highlight the recent spike in market interest towards the game, especially amongst new female players, since “The Queen’s Gambit” mini-series was aired. A record 62 million households watched that program in its first month. Increased chess activity in schools, libraries, and community centers has meant that parents are spending more on equipment, books, and instructions for their children, which dramatically benefits this high exposure brand. Chess clubs also continue to be active worldwide, creating new opportunities for reliable, recurring bulk purchases.
Its current ownership is capable of efficiently running this business without employees, spending 20 hours a week handling customer service, order processing, shipping, and tracking inventory. Experiencing some seasonality, the current owner notes that their workload typically increases to 40 hours per week during the peak holiday season. Direct sales are made by email, with the vast bulk of purchases coming through Amazon. This grants a new owner plenty of flexibility to grow the business in any direction they see fit.
Scale opportunities for this company include a stronger focus on diversifying to international markets and improved stocking of inventory during the busy holiday season to preserve product and prevent the missed opportunity for a purchase conversion. There are additional expansion paths in the wholesale market that this business could maximize through targeting big box retailers such as Target, Walmart, and Costco. They could also capitalize on the growing number of chess clubs being formed in schools, colleges, and public libraries as this game undergoes another renaissance period.
Leveraging their highly engaged audience, an incoming owner could connect with the company’s 11,000+ email subscribers for promotions and retargeting. Publishing a popular weekly newsletter, while utilizing a proven SEO strategy that has consistently earned top rankings on Google and other search engines, this company cements consistent growth. Accruing 5,000+ followers on Facebook and 1,300+ on Twitter with little social engagement, implementing a more assertive push on social media is likely to pay strong financial dividends in the future, especially with the development of video content for Facebook, Instagram, TikTok, and YouTube.
This acquisition proves to be an excellent opportunity to enter the booming eCommerce field of board games and gaming technologies. Believing in the promise of Chess many years ago, they’ve continued to solidify their position as a leader in the space throughout the current period. Having successfully marketed itself through eCommerce giants, this brand is well situated for new ownership and a new owner can engage the attention of young, lifetime customers.
