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Amazon FBA Brand in the Premium Fragrances Vertical – Massive 3 Year Growth Rate – Large Allotment of Hazardous Storage Space at Amazon (rare)

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Website Closers® presents an Amazon FBA eCommerce business in the fragrance vertical. Offering a diverse collection of scents for men and women alike on their Amazon storefront, they source from premier discount wholesalers in order to provide beautiful scents at affordable prices. Not only have they earned a fantastic reputation among their customers, but they’ve also built a close relationship with Amazon itself, allowing for many coveted benefits that very few other companies enjoy.

They currently have about 70 SKUs, though the exact number of products depends on seasonality and demand. Their network of suppliers, as well as the nimble structure of their business, allows them to adjust their inventory and product selection as needed, meaning that they can keep the most profitable SKUs and scrap those that have done poorly with their customers. Additionally, this has allowed them to assemble a diverse lineup of products, including unique curated gift set offerings to make buying in bulk much easier. The company has cultivated an Average Order Value of $68, and they have an incredible account health history and customer ratings, on top of their respectable FBA record.

The global market for perfumes continues to thrive, having reached an astounding $49 billion this year, with projections to hit $66 billion by 2026. Perfumes can help users feel more attractive, influence their mood, and have been increasingly used by men as well as women. Despite how lucrative the market is, however, there is remarkably little competition to be found on Amazon, with very few other brands reselling premium fragrances. This puts the company in the enviable position of having highly desirable products, without fighting to keep customers from turning to other businesses – a strong competitive advantage.

The market’s size and lack of competitors aren’t the only perks that the company enjoys, however. The long-standing relationship between them and Amazon has given them access to reputable Amazon-approved suppliers for beauty brands, as well as a large amount of hazardous space to work with. This hazardous space is made all the more valuable by the fact that Amazon is no longer granting it to FBA sellers, for the time being, giving them an incredible advantage over other brands in the industry.

Amazon has also personally invited them to grow their business in the Middle East, and even provided them with a complimentary dedicated Amazon Account Manager to better do so. The Middle East offers many fantastic scale opportunities for the company, as not only will expansion help diversify the company’s profit and add more sales channels, but countries such as the United Arab Emirates and Saudi Arabia are ripe with potential. By utilizing Amazon’s assistance and expanding into these regions, the company would be able to rapidly grow into an industry giant across the globe.

The nature of the company as an FBA eCommerce brand works in their favor to keep operations flowing as smoothly as possible, while cutting down on overhead costs. While they maintain a small warehouse space, most products are handled by Amazon FBA, and all orders are shipped through FBA. This saves them the cost of operating larger warehouses that other businesses require to handle their level of inventory, keeps their shipping times quick, and allows them to re-package products when necessary. Their re-packaging ensures quality control and minimizes the number of rejects at FBA, protecting the top-of-the-line value that the company is known for, and maintaining their tight-knit relationship with Amazon.

Remarkably, given how much of a presence they have over the Amazon market, the company relies very little on ad spend. A staggering 98% of their sales are organic, with the remaining 2% being fueled by the PPC advertisements that they run for a select number of products. This presents an excellent opportunity for growth, as the brand could take advantage of their solid reputation and high rate of organic traffic to develop their social media engagement. Facebook, Instagram, YouTube, and TikTok all have massive audiences within the beauty and personal care niches, with many popular beauty influencers across all four platforms. A new owner can easily create profitable social media campaigns and generate substantially more traffic and sales on their Amazon store.

They can capitalize on this by targeting their products toward these demographics, and partnering with affiliates and influencers to gather more of a following. This would exponentially increase their already high rate of organic traffic, create a community around their brand, and make them a more commonly known name throughout the entire beauty industry. The company can also encourage these consumers to subscribe to their growing email subscriber list of 2,000+, and utilize it for stronger marketing campaigns, newsletters, and the introduction of new products and packages.

While their Amazon page is wildly successful, the company could also grow further by diverting more traffic toward their official website. They have seen great results whenever they’ve put resources into advertising their site, with their lead generation campaign generating a 19% click-through rate. Building their website would give them an additional storefront to supplement their earnings and allow them to stand out more as their own independent brand.

Of the numerous “low hanging fruit” growth opportunities, one of the most straightforward ways of scaling the business, however, would be through adding onto their existing product offerings under their own brand. Their branded perfume discovery kits, along with their gift sets for men and women, have performed exceedingly well over the last 12 months, which is promising for any further development of custom products. Other offerings that would likely do well would be curated product samples and subscription sample boxes, allowing customers to better choose the right fragrances for themselves.

This is an excellent acquisition target based within a high-profit, low-competition niche. The company has established itself not only as a trusted brand among their customers, but as their primary sales channel as well, which has provided them the opportunity to grow over the past few years and to boost further growth in the future.

This Amazon Business is Represented by:

WebsiteClosers.com

Tech, Internet & eCommerce Business Brokers

WC 2760

Asking Price
$ 900,000
Cash Flow
$ 228,367
Gross Income
$ 1,858,050
Year Established
2018
Employees
2

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