WebsiteClosers® presents an Amazon FBA Brand that has overtaken the DIY & tools market in the DACH region.
They are a Germany-based business that has established themselves with their 11 unique offerings, some of which are protected by over 9 design patents. They are also registered for the EU and Germany, adding to their protections.
Their products are based in niches with less competition and a specific search volume, such as furniture lifters, wire cables, pin pointers, and awning kits. Several of their SKUs are made from the company’s own molds, ensuring that their products maintain their competitive quality and stay best in class.
The brand enjoys 22% profit margins, 63% gross margins, and YTD revenue growth of 22%. They also have TACOS of 6% and refunds of 8%.
Business Broker Takeaways
1. Lean Operations. The company’s operations are highly lean, as their products are primarily sold and shipped through Amazon FBA. They have one freelancer handling customer support, with current ownership managing the supply chain, running marketing efforts, and developing new products and new markets.
As ownership is currently working remotely, a buyer will have the freedom to manage operations from wherever they prefer. Additionally, they could reduce their workload by outsourcing some of their responsibilities to new workers.
2. Simple Marketing. Their marketing strategy currently consists of a PPC campaign managed through PPC Butler. The simplicity of this strategy means that there is ample room for a buyer to scale by investing in additional marketing efforts.
3. Dedicated Customer Base. Their customers appreciate the work the brand has put into their products, leading to a 4.5-star average rating based on 3,655 reviews, and a Seller Rating of 4.9 stars.
As customers already know and trust the company’s products to solve their problems, the addition of new SKUs would be natural and likely see attention soon after release.
Scale Opportunities
The company is in a strong position to grow, and already has two products in the pipeline that a buyer can release post-purchase. The new owner could then carry this momentum by expanding the brand’s variations of their existing products, making them a more versatile choice for their customers.
The brand could make these products accessible to more customers by expanding to new regions. While the company primarily sells to Germany, Austria, and Switzerland, they have the potential to expand into the UK and the US.
They could also develop storefronts on other online websites, such as Shopify and eBay, and draw attention to these new channels with additional online marketing efforts.
Conclusion
This acquisition is a well-established, easy-to-run company that enjoys strong financials. They are primed for scaling, with a product roster that has broad appeal among consumers.
A marketing and eCommerce savvy buyer would be an excellent fit for this deal, and, by implementing the right strategies, they could take the business to the next level and target an even larger audience.
