Website Closers® presents an Amazon FBA Brand in the DIY and Specialized Tools vertical, marketing its unique and proprietary tools that are in high demand for home improvement projects, but often difficult to find. Those include furniture lifters, awning kits, wire cables, and other toolbox items that offer practical aid for people doing work on renovation projects in their homes.
These products have caught the attention of a growing customer base of DIY enthusiasts and professional craftsmen, who are responding by helping the business to maintain a 4.9 Seller Rating on Amazon, based on nearly 4,000 glowing reviews. Since the items this Brand sells are highly specialized, customers appreciate how easy it is to make a fast order from their Amazon storefront. This has also enabled the company to operate with virtually no direct competitors since no rival business is offering the same unique mix of products. The company continues to develop new SKUs, with two new products in the pipeline.
This German company markets its products in that country, Austria and Switzerland, and has created a lean foundation with low overhead and strong financials – the ideal business for a new owner to scale. This 5-year-old business was able to quickly discover its target audience by providing them with problem-solving tools for their next home improvement or renovation project. Fast-growing sales have given this business 63% gross margins and 22% profit margins as more buyers discover them, and the business utilizes Fulfillment By Amazon to get products quickly shipped and delivered to customers. All products are sold under their brand name, and the business has 9 patents to protect their trademarked tools.
The business shrewdly recognized the immense popularity of the DIY Home Improvement market, which was valued at $812 billion in 2023 and projected to continue growing by 4% through 2031. This has become a dynamic vertical that caters to people undertaking home improvement, crafting, and repair projects on their own, and it’s driven by the popularity of DIY culture, which includes people looking for cost savings on their improvement projects, and those who enjoy the work as a creative endeavor.
This Brand has done its research into products that DIY enthusiasts are eagerly looking for but sometimes struggle to find. The Brand has become the Leading Choice in the DIY/Tools Sector on Amazon within their DACH Region.
This is a formula that a new owner could quickly replicate in other countries, including the U.S. There are plenty of clear opportunities for a U.S. Buyer to acquire this company and then scale it quickly. That could include continuing to launch new and unique products that are in high demand, offering variations of their existing SKUs, and using digital marketing tools such as social media marketing and partnerships with popular DIY influencers to build brand recognition. The company could also launch a Brand Website to expand its sales channels further.
Business Broker Takeaway
We are excited about this business for 3 important reasons:
1. Committed Buyers. The Brand’s extensive research has produced high-demand products that its DIY buyers are looking for, and they understand that one of their customers’ top priorities is practicality. Their tools are designed to not only fulfill a specific purpose or home project but to become a reliable tool over and over again in the future. Their practical helper tools serve buyers at home, in their gardens, in their pools, and during trips and vacations in motorhomes. Customers also like that this business offers them risk-free testing of each product as a high commitment to customer satisfaction. That’s a reason why 3,600+ customers have given the company highly enthusiastic reviews on Amazon. Customers have come to know this company and trust it.
2. Marketing Opportunities. Like many Amazon storefronts, this business has effectively used paid media on Amazon to put their shop in front of their key demographics. The company also maintains an educational blog on its Amazon storefront to help boost customer engagement. While both approaches have been successful at driving sales higher, the new owner would have plenty of additional digital marketing tools to tap into. The company could launch its own Branded Website, collect emails, and then launch an effective email marketing campaign. Video marketing of how their tools work would be equally effective on sites such as TikTok and YouTube. The company could also have its new website fully optimized for popular SEO keywords in the DIY niche.
3. Efficient Operations. Amazon sellers usually find plenty of benefits to operating a storefront on this platform, including simplified logistics and superior customer service through FBA, the ability to reach 300 million active users, customer insights through analytics, and access to powerful marketing tools. Amazon has enabled this business to maintain lean operations while enjoying excellent revenue growth. The current owner is assisted by a freelance worker who handles customer support, while the seller manages the supply chain and focuses on developing new products. Amazon handles the rest. A new owner could hire a virtual assistant to manage daily tasks while focusing on scaling this company.
Conclusion
Launched in 2020, the business has demonstrated that its unique products have a wide appeal among the millions with a passion for home improvement projects. This is a global phenomenon, and the company has enormous scale potential by taking their SKUs to countries they do not serve today.
With two new products in development, the new owner can move quickly to increase profits and attract new customers, especially with the company’s solid recurring revenues as a starting point. Not all their products are available on the Amazon storefront, with several waiting to be relaunched as demand increases or seasonal factors kick in.
The business has demonstrated that the DIY market is a popular and rapidly growing vertical. The next buyer has the ability to turn this business into a leader in that field.
