Website Closers® presents an Amazon FBA brand that is brewing up sales in the home goods and kitchen industry. They offer a line of fantastic products that include, but aren’t limited to, appliances like air fryers and coffee makers, and use a hybrid model to keep their inventory management going smoothly. For smaller products, they use FBA, while larger items are merchant-fulfilled. This model helps maximize profits and improves their shipment efficiency.
They have nearly 80 SKUs available for sale, which target many of the common needs and demands a consumer requires for their home and kitchen. They have an Average Order Value of $150 and ship out 10 to 12 orders every day. As customers require a reliable appliance regardless of the season, they see consistent demand throughout the year.
The brand sources their products from an extensive network of distributors and contacts that the current owner established by meeting them at various trade shows. This network lets them purchase SKUs depending on product availability and price. The current owner also regularly searches for the latest trends through JungleScout and other search options, which allows them to identify which products would sell best in certain categories and add them to their roster.
Marketing
The very nature of the company serves as their own organic marketing, as they specializes in selling products from well-known household names like Nespresso or various Ninja Products. This means that, instead of having to invest in a carefully strategized marketing campaign, the company can sit back and let their SKUs advertise themselves. The success of this strategy speaks for itself, as while they have no active marketing tactics, paid or otherwise, to speak of, they still see about 48,560 visitors on average to their storefront every month. The buyer can change this strategy by investing in PPC on Amazon, but while it may lead to a higher viewership rate, it’s by no means required for the brand’s continued growth.
Management and Inventory
The company is currently maintained exclusively by the owner, who is responsible for handling customer service, the store’s inventory and pricing, and other general tasks needed for day-to-day operations. Given the fact that the owner is the sole employee of the business, the buyer could easily reduce their workload simply by hiring a few employees to help manage some of these tasks. This move would give the new owner more time and freedom to research new products, improve operations, and scale the business.
Their current hybrid model serves them well, with any larger product shipments handled through a warehouse with 20×30 feet in space. Depending on the buyers’ preferences, they could tweak the brand’s inventory model to lean more towards this stock model, or, alternatively, push things more in the direction of FBA, which is currently responsible for their smaller product shipments. However, by obtaining more warehouse space, the company could store more products, which could easily lead to them generating over 50 to 60k a month in gross sales by selling the items that they already have in stock.
Scale Opportunities
There are several noteworthy methods that an ambitious buyer could implement to scale the company and their profits. A reliable strategy would be to continue releasing new categories and brands each month, as the owner’s experience with regularly adding new products has given positive results. Expanding into new categories would also let the buyer capitalize on the demand that those other markets have, broadening the number of consumers that the company can appeal to and diversifying their sales. The buyer could facilitate this expansion by partnering with new suppliers, and by continuing the market research that the current owner often does.
The company also has an active Brazilian storefront, which has so far been operating in an invite-only capacity. The buyer could dedicate efforts towards improving this store, which would increase its profitability and serve as an excellent stepping stone towards further international expansion. They could establish a presence across Amazon’s global storefronts to achieve this broader reach, leading to a larger available customer base and, in turn, stronger profits for the buyer to look forward to as the company grows.
Conclusion
This deal offers a brand that’s as sweet as they are straightforward, and operates out of an industry that enjoys steady demand across different seasons and demographics. Because their products feature such recognizable household brands, customers naturally seek them out, cutting out the work required in creating and maintaining an effective marketing campaign. The buyer also needs no real special skills to manage the business, though they would benefit from knowing how to read sales charts and pick up on the latest market trends. With some polishing dependent on the new owner’s needs, continued market research, and new additions to the product roster, the company could quickly skyrocket and offer their buyer a great ROI.
