Website Closers® presents a successful Amazon FBA Brand operating in the Orthopedic Brace and Support Vertical. This eCommerce Brand is currently only sold on Amazon with no branded website and no sales on any other channels (an immediate low hanging fruit opportunity for a new owner). The company is simple to manage and is growing despite requiring little time from the owner.
Amazon Reviews
Key to any product on the Amazon platform is Rank and Reviews. When reviewing products in this category, a user’s eyes will be drawn to this Brand due to the over 1,100 5 stars lit bright in the SERPs, the high rank of the product in just about every keyword usage for the sector, and the glowing things people have to say in the verified reviews. The first review that shows up states:
“I was hesitant about ordering this one because the price seemed too good. I need help with my posture but wanted something that wasn’t too noticeable wearing everyday. This works great! It came with adjustable straps extenders but I don’t need them. I was able to wash it too.” –Kelly (verified purchase)
The Product
The main product is a posture corrector designed to help both men and women improve their posture and enjoy the resultant benefits. It promotes the proper alignment of bones and joints, allowing muscles to be used correctly. It also helps relieve pain while providing upper and lower back support. The posture corrector is made of breathable materials and extra strong mesh, making it comfortable to wear at home, in the office, or while traveling. It can be worn over or under clothing. After only ten days of use, it can train the body and develop muscle memory, leading to an improved pose that can make users look taller and slimmer. Additionally, it is fully adjustable with a strong Velcro closure and comes in a wide range of sizes for a perfect fit.
The product is sourced directly from a manufacturer in China with whom the owner has an excellent relationship. Payment terms are favorable and only due 30 days after a shipment arrives at Amazon. The business makes use of a 100% stock inventory model and maintains around $10,000 at Amazon facilities and $25,000 with the manufacturer, who does not charge any storage fees. Once an order is placed, products are sent directly to FBA distribution centers, avoiding the need for a warehouse and handling inventory.
Working capital requirements for a new owner are meager, given the supplier terms and sales volume and the evergreen nature of the business, which provides stable cash flow.
Operations
The owner works only two to three hours weekly on the business, focusing primarily on checking Amazon notifications, listings, and stock levels. No employees or third-party contractors are required.
This business has sold over 200,000 units with minimal advertising or marketing. As a result, it has the potential to scale significantly by implementing various methods.
The company stocks all of its products directly with Amazon. The supplier generally holds $20,000 – $30,000 in stock at any given time in China and Amazon usually has $10,000. No 3PL or warehouse service is needed for this operation. This cuts down on SG&A and allows this well-oiled machine to operate at a net margin of 22%.
Growth Opportunities
International expansion is an enticing prospect to expand reach considerably. The posture corrector market is developing globally, and by taking the product to other countries such as Canada, Mexico, and parts of Europe, a buyer can tap into new markets and expand the customer base. Partnering with local distributors or using eCommerce platforms like Amazon’s European marketplaces will enable the brand to start generating new income streams easily. Management can also invest in local language websites and marketing efforts to connect with customers in these regions.
Additionally, the founder has identified opportunities by selling on additional channels such as Walmart, eBay, and Shopify. By doing so, the business can take advantage of the exposure to millions of users on those platforms. Furthermore, by expanding its sales channels, the owner can reduce reliance on a single platform and significantly boost revenue.
Launching new products would quickly heighten revenue and allow the brand to appeal to a broader range of potential customers. The business has over 20 products in its pipeline, which can be launched quickly. The new SKUs can also target different customer segments or markets, helping the company diversify its range and multiply its customer base. A buyer should also consider developing complementary products that can be sold alongside its current offerings, creating an opportunity for cross-selling and upselling.
Social media marketing is another potentially lucrative method to scale. It can help the brand reach new audiences, build awareness, and engage with customers. By creating social media profiles and sharing content regularly, the business can develop a following and generate traffic to its website or marketplace listings. It can also use social media advertising to target specific customer segments. The brand can leverage influencers or ambassadors to promote its products and increase conversion rates.
As the business grows, it’s worth considering mounting the PPC budget on Amazon to increase its visibility and generate more sales. By bidding on high-traffic keywords and optimizing its listings, the company can improve its ranking and subsequently boost sales. Furthermore, it can use Amazon’s advertising tools, such as Sponsored Products and Sponsored Brands, to promote its SKUs and target specific customer segments.
Few special skills are required to run this business successfully, and it is primed for continued growth and profitability under new ownership.
