WebsiteClosers® presents an Amazon FBA Brand that has a 10-year track record of successfully marketing its line of high-quality Luxury Luggage and Travel Gear, targeted to consumers who prefer luggage made with cutting-edge technology. The company offers 15 SKUs that are manufactured for them according to their designs, and trademarked and sold under their brand name.
The company’s suitcase organizers and related accessories come with additions such as GPS tracking and anti-theft features which customers have been asking for. With the market for travel accessories growing rapidly as the tourism industry experiences continued growth, this company’s fast-growing sales on Amazon have given it a leading position in this lucrative vertical.
Amazon has been a strong platform for this company. PPC ad campaigns on Amazon have brought plenty of customers seeking travel gear to their shop, while the use of Fulfillment by Amazon gives the company a reputation for fast shipping and excellent customer service.
The company does have other sales channels as well, including a Shopify website that transfers customers to their Amazon shop and accounts on Walmart, Wayfair, and eBay. The vast majority of sales, however, are on Amazon, which has enabled them to attract such a large customer base. Their customers appreciate the high-quality products they’re getting from this brand and have responded with thousands of highly enthusiastic 5-star reviews. While their travel gear is designed to be enjoyed for a lifetime, the company’s Repeat Customer Rate just shot up by 10% as customers seek out accessories such as portable chargers, travel cushions, and packing organizers.
This is both an evergreen and highly lucrative vertical that the brand is operating in. The Global Travel Accessories Market was valued at $48.2 Billion in 2021 and is projected to reach $95.7 Billion by 2031, a 6.4% growth rate. Luxury travel accessories have become more popular as the travel industry has been experiencing a major resurgence since the end of the pandemic lockdowns. Pent-up demand for heading off on vacation has led to a skyrocketing number of people doing international travel, and among the many related verticals benefitting from this trend, the travel gear and travel accessories markets have done particularly well. The demand is there for travel gear that goes above and beyond in terms of comfort, convenience, and style than what has been available in the past.
This business represents a clear opportunity for a U.S. Buyer to acquire this company and scale it quickly. The company could develop an extensive marketing plan beyond its Amazon ads, launching proven digital marketing tools to drive sales higher, including affiliate and influencer marketing on social media, video marketing on popular platforms such as TikTok and YouTube, and an SEO program that includes a travel blog on the website.
Business Broker Takeaway
Our analysis of this business shows that the value propositions present are strong for a first-time buyer looking to get into the online space. We are excited about this business for 3 important reasons:
1. Strong Customer Demographics. The company has enjoyed tremendous success in appealing to Millennials and Gen Z travelers looking for travel gear that offers attractive and stylish looks, that are Instagram-worthy and stand out on social media. The company maintains social media platforms on Instagram, Facebook, and Twitter (X), with professional photos of their SKUs in the hands of busy travelers, and the company has also shown a knack for anticipating customer demands for durability and practicality as well as style. The company understands that its customers want items that provide functional benefits and have an appealing look. This has helped the company attract upper-income buyers to their shop.
2. Sizeable Inventory. With FBA managing shipping and storing products, the company can offer the buyer of this offering another significant benefit. The sale of this company includes $90,000 in inventory. The buyer will take on a thriving Amazon store with a growing customer base, and the inventory needed to keep up with rising sales. The company keeps 95% of its inventory in stock at its warehouse and then ships to FBA twice a month. There is an additional $180,000 in excess inventory on hand which can be negotiated as part of the sale.
3. Excellent Supplier Relationship. The company has relied on its supplier for the past decade, and today both sides have a trusted and valued relationship. The supplier specializes in manufacturing and sewing smaller minimum-order quality requests, including this brand’s luggage and accessories. The manufacturer has expertly produced products based on the company’s proprietary design, which is trademarked. Because of this strong business relationship, the company can quickly ramp up orders for the summer travel season between June and August, and then again during the holidays, since these SKUs have become popular gift-giving items.
The Company
First launched in 2014, the current owner took over the business in 2019 and has continued to build up the foundation, adding new sales channels and improving their social media platforms. The products had been designed in-house by the company’s founder, and the new owner has launched variations in style and color.
With Amazon handling most of the functions of this business, it’s a very turnkey operation, enabling the current owner to limit the workload to just 5 hours a week or less. The owner’s chief tasks include monitoring inventory levels, ordering new supplies, and supervising an employee who manages Amazon PPC ads and a second employee who supervises the Amazon Seller Central account.
While the company has relied on Amazon ads to direct visitors to its shop, they have additional tools for a new owner to take advantage of, including their social media platforms and an email database with 1,500 subscribers.
This is a very profitable Amazon business that has found its customer base and has enormous scale potential, including launching new products and advertising in popular travel industry publications. For a new owner, there is clear potential to send the company’s profits skyrocketing around the globe.
