Website Closers® presents an Amazon FBA Company that is cooking up sales left and right. They have used a hybrid model of FBA for smaller items and merchant-fulfilled for larger items to maximize profits and deliver excellent products that fall primarily within the home goods and kitchen categories.
Their nearly 80 SKUs address many of the common needs and demands a consumer requires for their home and kitchen, including coffee machines, air fryers, blenders, and more. They have an Average Order Value of $150, ship out 10 to 12 orders every day, and their products see consistent demand throughout the year.
The brand sources their products from a network of distributors and contacts that the owner met while attending various trade shows, which allows them to purchase SKUs depending on product availability and price. The current owner also continuously looks for trends by utilizing Jungle Scout and other search options to target specific items and categories, identifying which products might sell best and incorporating them into their product roster.
Marketing
As the company sells products from well-known household names like Nespresso or various Ninja Products, their SKUs do a great job of advertising themselves on Amazon. They have no active marketing tactics, paid or otherwise, to speak of, and still maintain an average monthly visitor rate of about 48,560. Though the new owner can change this by investing in PPC on Amazon for a higher viewership rate, doing so isn’t necessary by any means for the business to thrive.
Management and Inventory
The company currently has only one employee to speak of, which is the owner themselves. They are responsible for handling customer service and continuous monitoring of the store and its inventory and prices, alongside other general tasks. The new owner could significantly cut down on their workload by hiring employees to take on some of these responsibilities, which would give them more time to focus on researching new products, operations, and scaling the business.
They make use of an FBA model to handle smaller shipments and use a warehouse with 20×30 feet in space for any larger products. The buyer could also change this hybrid model to lean more towards one direction than the other, depending on their personal preferences and what best suits their needs post-purchase. With more space and the ability to store larger amounts of inventory in the warehouse, however, the store could easily generate over 50 to 60k a month in gross sales by selling the items that they already have in their inventory.
Scale Opportunities
There are several straightforward methods that the buyer might take to scale up the brand and quickly improve their sales. They could, for instance, continue releasing new categories and brands each month, due to the owner’s expansion into new product types. Expanding into new categories would let them tap into the demand that other markets have, diversifying their sales and giving them a product roster that appeals to a wider consumer base. The buyer could also make connections with new suppliers in order to facilitate this product expansion.
The company also has an active store in Brazil, which has been operating in an invite-only capacity thus far. The new owner could work to improve this storefront to make it more profitable, and, from there, continue to pursue international expansion through Amazon’s global storefronts. International sales would mean access to a larger customer base, which, in turn, would make for stronger profits that the buyer can enjoy for years to come.
Conclusion
This acquisition is sweet and simple, and based within an industry that sees constant demand among consumers. Their products are incredibly profitable, and as they fall under various trustworthy and recognizable brand names, little to no advertising is required to draw attention to the company. The buyer also requires no special skills to run it, outside of knowing how to read sales charts and the ability to pick up on sales trends. With some fine-tuning, adjustments, and continued market research, the new owner could see a quick ROI and fantastic results.
