Website Closers® presents a thriving eCommerce Brand that continues to grow year over year. The brand is fully trademarked and operates as an Amazon FBA Business, solely in the United States market. They focus on ESG-type products, including eco-friendly and green products. This includes Paper Napkins, Wooden Cutleries, PLA Compostable Cutleries and Paper Toilet Seat Covers, but all in there are over 100 SKUs on offer. They generally focus on having a large variety of everyday products available and they specialize in paper, wood, bamboo and plastic items … such as toothpicks, bamboo skewers, plastic cutleries and poly gloves and aprons.
The company has rotating star products, a high number of great reviews, and a solid long-term relationship in place with Supply Chain, which allows them to offer high quality products at very competitive prices. And while the US is their focus today, they just started new campaigns in other Amazon FBA Markets, including the UK and Japan.
The business has an excellent financial track record and continues to see jumps in sales and profit as time progresses – one of the great value propositions with this company includes a roadmap to success on the Amazon Platform. From the beginning, management recognized a huge market in the US for home and kitchen products. They monitored and studied the demand for specific products and found themselves in the niche of eco-friendly and green products, especially disposable items that were biodegradable and compostable.
The company sells exclusively through Amazon and has built a persistent presence. It boasts 4.6-star average reviews with solid account statistics. Notably, this company took advantage of the pandemic but broke the trend by continuing to grow prolifically since, tracking 70% year-on-year growth for 2022. 75% of revenue comes from strong organic traffic, which makes up 75% of sales, while the return on ad spent sits at a very favorable 450%. Moreover, there is very little concentration risk at the SKU level.
The business experiences little seasonality in sales, with predictable revenue throughout the year. This simplifies and maintains consistency in cash flow, inventory, and orders and has helped the business scale.
The brand has strong, long-term relationships in place with multiple high-quality suppliers. Coupled with the fact that 99% of sales are currently made in the US, international expansion seems an excellent next step. Given the company’s structure and tenure on Amazon, the expansion will not impact overheads or require additional staff, merely bringing in the opportunity for a significant sales boost. The company has recently extended sales into the UK and Japan, and with rudimentary market research, it can quickly find other regions where the product line will succeed.
The affordability and accessibility of the brand’s products have been critical factors in its success. The brand’s average order value of $15 equated to revenue of comfortably over $4 million in the past year. Quality and quantity combined set this brand apart as well as the wide variety of customers the products cater to. Typical customers vary from average Amazon shoppers to small business owners to many in the restaurant industry.
The various owners work just 25 hours weekly combined, focusing primarily on monitoring inventory levels, liaising with suppliers, managing shipments, and managing advertising campaigns. No additional employees are needed to run the business.
Marketing has been straightforward yet effective. For example, 100% of advertising is through Amazon’s PPC campaigns. The company spends about $20,000 per month on advertising and has a ROAS of approximately 450%.
As successful as the company is, many viable methods exist to scale the brand even further. Tapping further into digital advertising beyond Amazon is easily attainable. Affiliate marketing and implementing additional secondary sales channels should be considered. Subscription boxes are also an excellent model in this niche, providing high margins, little follow-up marketing, and consistent cash flow. Recurring subscription options can produce and maintain repeat orders, and new partnerships and additional SKUs could quickly add an entirely new customer base.
There is immense opportunity for a new owner to scale the operation with mass retail. The brand hasn’t yet dipped its toes into the massive wholesale market in this vertical; however, a focused campaign could create an entirely new and significant revenue stream, increasing repeat business. Additionally, a buyer with an established sales or buying network can take this company to new heights via this channel. The restaurant industry is enormous, and a good percentage of this business’s customers are in it. Partnering with suppliers to the trade, for example, may be a relatively uncomplicated move.
This business has the history, systems, customer base, and service values that consumers love and appreciate. The company’s operation is simple and easy to learn because of practical and manageable processes. Management has systemized the business well, making it an exciting acquisition for ambitious new owners who can enjoy the benefits of a turnkey business or focus on vast expansion in a multitude of ways, depending on their expertise.
