Website Closers® presents an eCommerce company that is thriving on its Amazon storefront, marketing both its own branded products as well as other popular brands’ products. A key to their skyrocketing sales has been the ability to carefully select products they know are top sellers and in high demand. It’s impossible to downplay the significance of that, how it has contributed to this brand’s success and profitability, and how that makes this acquisition a highly desirable one for a buyer to consider.
Highly effective product selection is a hallmark of this company’s ongoing success, and more than a decade of experience has enabled this enterprise to fine tune that into a near-science. The company knows how to successfully launch strategies that they have developed over time.
Considering that this brand now markets 25 popular SKUs, their ability to grow rapidly, doubling or tripling profits in record time simply by expanding their product line, shouldn’t be underestimated.
Amazon has created a remarkable marketplace, not just for consumers but for sellers as well. The advantages provided to entrepreneurs looking to start an online business are plentiful. Amazon remains the biggest eCommerce retail platform, and has recorded stunning growth in net revenue, from $135 billion in 2016 to a market value of $1.49 trillion in 2020.
In that year, Amazon ranked as the top U.S. company in retail eCommerce sales, taking in 38.7% of the market. Studies show 63% of consumers start their search for a new product on Amazon.
For sellers, the competition can be fierce: there are an estimated 9.6 million sellers on Amazon. That’s why choosing a product to sell on Amazon is one of the most important decisions any seller will make.
The right decisions can be highly profitable, as this brand has discovered, bringing in a phenomenal $9.3 million in gross revenue. A review of how they got to this enviable position will demonstrate for a buyer what a worthwhile investment this company truly is.
This brand was launched 12 years ago, offering both their own brand name items and many resells. The company has a website that highlights their own brand SKUs, including popular drones and drone gear. The company operates globally, while recognizing that the public’s interests and shopping habits are constantly shifting, so they need to keep up with the latest trends and advances in technology to remain competitive.
That’s why they set out to select only high value items that translate into high profits. With 25 SKUs available, the brand has a high Average Order Value of $615 that keeps profits high. Their unique mix of products has sales humming throughout the year, with no seasonal factors, although their electric coolers bring in predictably strong sales during the summer months.
Their products appeal to a unique customer mix, including adventurers and hobbyists, and their products are readily available on not just Amazon but more recently Walmart as well.
In addition to being highly profitable, this operation is a very smooth and efficiently managed one. The company stocks its products, using Fulfillment By Amazon for half of all shipments. They now ship by to 40 items daily from their 3PL warehouse, while maintaining on average $500,000+ in inventory at all times to keep up with customer demand.
A buyer would not find this business requires a heavy workload. The current owner spends just 20 hours per week operating it, with a focus on handling customer service, purchasing inventory and listing products on Amazon. The owner does not need any employees because this business is so highly automated.
That demonstrates another key advantage to operating on Amazon. The company’s marketing campaign has largely consisted of running PPC ads on Amazon, which has helped expose their products to an increasingly larger audience, expanded their customer base and boosted sales.
The company uses Seller Central, and all of their Amazon SKUs are sold Prime. Essentially, the brand is using Amazon to achieve what virtually all online sellers want: a minimal workload, and healthy profits.
There are certainly ways to boost this company’s profitability even higher. This company continues to explore new product development to discover items that buyers are certain to find appealing; their most recent product in development is a window bird feeder that the brand is ready to start testing.
The company could also expand exponentially through a more aggressive digital marketing strategy. Launching a social media marketing and email marketing campaign would be ideal for not only boosting organic traffic and attracting more customers, but for upsells to their existing customer base.
The same is true for an SEO program that uses keywords in product descriptions to give them higher rankings in search engines and a blog on their website to attract more visitor traffic.
This company is a virtual roadmap for how to successfully use Amazon to create a thriving eCommerce platform. As part of the acquisition, the current owner is ready to review with a buyer their proven method for selecting high quality SKUs that are guaranteed to sell and bring in a high profit.
This offering is one that gives a buyer all the strengths they’re looking for in a business, from popular products to high recurring revenues, to an expanding customer base and great scale potential. Contact Website Closers today to find out more about how this business is ready to skyrocket to the next level.
