Website Closers® presents an Amazon eCommerce business that purchases and resells popular name brand medicines, supplements, and beauty products on several Amazon Accounts with higher than normal Buy Box ownership percentages. Since these over-the-counter products have widespread brand recognition and are used by millions, the company can focus on pricing, shipping, and excellent customer service to drive sales and buy box ownership. For the past 11 years, this enterprise has done an exceptional job of listing SKUs that are in high demand among consumers, leading to a broad demographic spanning every conceivable age group and income level. There are low to no seasonality factors. Understanding the kinds of products that customers want has been crucial for this brand; several key strategic decisions and their homegrown system for listing products have contributed to success, along with a 58% increase in YOY comparable sales.
The company selects its products carefully. Today, company’s top selling product only represents 5% of their overall sales, meaning their concentration rate is very low and overall sales stem from a long list of available products on their Amazon Accounts – where they now offer more than 1,500+ SKUs, of which at least 700 enjoy steady sales at any given time.
These common household products come directly from the manufacturer, often from liquidation sources, and the owner of this company will teach new ownership the process used to identify and purchase these products in volume at the best possible rates. In fact, the owner would like to remain with the new owner and retain equity (if possible) since he is highly bullish on the business and would like to be involved as it continues its growth trajectory.
The company receives quotes from its vendors with a list of products and prices, and typically tests new ones to see if it can reach a minimum level of profit. The ones that don’t match the criteria either get dropped, or the brand renegotiates the price with the vendor. This method enables the company to guarantee that everything they sell meets a minimum percentage of profitability.
Amazon has been a Critical Platform. The company has been able to enjoy fast shipping using the Fulfillment By Amazon model, which handles all their shipments in an expedited manner and provides consumers with an industry best 1 to 2 Day Shipping on just about anything. Given that the company is averaging many sales daily and they are now processing between 5,000 and 9,000+ units in their warehouse, this Amazon FBA service has been indispensable. With the right motivation, processes are in place to ramp that number up to 15,000+ units per day and begin processing orders on other platforms, like Walmart, Target, Instacart and more.
Because shipments are made quickly and the company responds immediately to customer inquiries, their customer feedback on Amazon sits at a high lifetime average rating. Thanks to a decade-old customer base on the site, repeat orders and brand loyalty contribute to their bottom line.
The company also has exclusive rights to some really well known brands sold on Amazon. As the only authorized seller of those products on Amazon, buy box competition drops to zero and the company gets to use the massive power of Amazon to drive sales of the product and reap the margins.
Sales remain vibrant year-round. With an Average Order Value of $38 and thousands of available, high volume SKUs, the organization now attracts 83,000+ customers monthly. Based on existing numbers, the brand is projected to earn $30 million in revenue next year, up from $22 million in 2021. The company has the ability to ramp up orders from its vendors, who could provide new sources of inventory at a level that could potentially double their business in the short term. Those are healthy and very profitable numbers for any company to be drawing in.
Scale Options are readily available. Right now, the company markets its products exclusively in the United States, but Amazon’s international distribution network presents the opportunity to double or triple revenue by taking advantage of the eCommerce giant’s platforms in Canada, Europe, Mexico, China, and Australia. Since their supplements and beauty products have global appeal, this would be an easy sell.
The company has focused on pricing strategies to attract customers, and so far, this approach has worked well. There are also options to expand by employing digital marketing techniques. PPC ads run on Amazon would provide an enormous boost to their bottom line, and so would the use of an SEO program that optimizes their product descriptions for the most widely searched keywords. The company could launch its own Shopify website that would include an educational health blog to expand the customer base and boost organic traffic to their site.
Having the right products on the right platforms is key to any company’s success, and this brand has done exceptionally way negotiating the right prices for the products they buy, then reselling the ones that demonstrate clear customer appeal. Their gross revenue tells the entire story. Contact Website Closers today to find out more about how this company offers a buyer an irresistible deal.
