Amazon FBA Brand in the Eco-Friendly Home & Kitchen Products Category – 70% YOY Revenue Growth – 7 Years in Business – Tens of Thousands of Product Reviews

Pending

Website Closers® presents an Amazon FBA Brand whose financial record and strong eco-friendly messaging speaks for themselves. This prosperous 7-year-old brand specializes in providing green (eco-friendly) alternatives for a number of everyday items. Some of their best sellers include their paper napkin bands, wooden and PLA compostable cutleries, drinking glasses, chopsticks, and a full line of other bamboo and disposable wood products. Along with these products, which are suited to the consumer’s kitchen or living area, they also offer items centered around hygiene, such as paper toilet seat covers, disposable bibs, gloves, and aprons. They have basically become a one-stop shop for discerning consumers that choose to focus on products that help sustain our environment.

When the company first launched, they were quick to realize the popularity of home and kitchen products within the US. To stand out within such a lucrative industry, they conducted market research into the strongest ongoing trends and demands, and ultimately decided upon breaking into the environmentally friendly niche. They discovered that green products, especially those that were biodegradable and compostable, were highly sought-after by consumers, and they wasted no time in tailoring their product line to meet this demand. They have cultivated strong relationships with their suppliers over the years, letting them build up a catalog of over 100 excellent SKUs.

All of their sales are done through Amazon, where they have polished their reputation to a brilliant shine. Along with thousands of 4.6-star average reviews across their products, they also have a 96% Positive Lifetime Seller Rating. The company has grown exponentially throughout the last few years, with a 70% YOY growth rate across 2022. They boast a fantastic marketing plan, with 75% of their revenue being generated through their organic traffic, making up for 75% of total sales. This has led to their return on ad spent lingering at a remarkable 450%.

Additionally, they have a low concentration of sales through their SKU line, which are broken down
below:

• Top SKU: 12.3%
• Top 5: 43%
• Top 10: 61%

The company sees very little seasonality, with revenue remaining consistent throughout the year. This keeps cash flow, inventory, and orders simple and straightforward, clearing the way for the business to easily scale.

They have formed numerous strong, long-lasting relationships with reputable manufacturers, who supply them with a consistent stream of the highest quality products. These relationships would make it more than viable to pursue international expansion in the future, as at the moment, 99% of the company’s sales are within the US. Their structure of operations, along with their strong tenure on Amazon, are set up in such a way that any expansion won’t affect their overhead or staff
requirements, setting the stage for a large boost in sales. The company has already begun to establish themselves within the UK and Japan markets, and with the right research, they could branch out further into other profitable regions.

The company’s affordable $15 Average Order Value, coupled with the accessibility of their products, have been the backbone of their success. They have generated over $4 million in sales in the past year and have set themselves apart from their competitors with the variety of products they offer and the attractive price point. Though their customer base includes standard Amazon shoppers looking for utensils or other eco-friendly items for their homes, they also cater to small business owners within the restaurant industry.

The owners work roughly 25 hours combined throughout the week, during which they monitor their inventory levels, work to maintain their supplier relationships, place shipments, and manage advertising campaigns. There are no employees outside of the owners, which means that this workload can be adjusted as the buyer sees fit with the addition of new hires.

They have an exceedingly simple marketing campaign, with 100% of their ads consisting of Amazon PPC campaigns (Sponsored Ads). They spend approximately $20,000 every month on these campaigns and see a ROAS of about 450%. Though this advertising plan, and, in turn, the business itself, has been highly successful thus far, they could scale it further through certain improvements while maintaining ROAS. Rather than exclusively advertise on Amazon, they could pursue affiliate marketing as well. The company’s environmental niche would also flourish on social media sites like TikTok and Instagram, especially when pushed by influencers on the platforms.

Subscription boxes have also been proven to do well within this niche, as they generate consistent cash flow and high margins without needing much follow-up marketing. Implementing subscription options would also raise their Repeat Customer Rate, which, if supplemented with new partnerships and additional SKUs, would drastically expand their customer base.

Creating additional secondary sales channels would be a clever move for the buyer to make, as it would strengthen profits and increase their overall accessibility. The company hasn’t explored the mass retail and wholesale markets yet, but with a focused campaign, these channels could become incredibly viable sources of revenue and repeat customers. A buyer with the right connections or established sales would be perfect in this regard, as they could use their network to turn the company into an industry giant. They could also partner with suppliers in the restaurant market to more directly target customers in that field, as a substantial number of their consumer base already consists of restaurant workers and owners.

This acquisition offers a straightforward, easy-to-learn operational structure thanks to its systemization, practical processes, and manageable tasks. They’ve set themselves up as a trusted name within an ever-growing niche, and have the products, customer service, and systems to back their reputation up into the future. This is an incredible opportunity for buyers with the proper ambition and experience behind them, and who are looking for a flexible business that can be tweaked to meet their needs and schedule.