Website Closers presents an Amazon FBA Brand that has boomed in a fast-growing niche within the specialized Smart Home Tech-Enabled Products Vertical. The company was founded by engineers looking to create a unique smart alerting and notification platform for various needs around the home. These proprietary products offer multiple notification mechanisms along with other perks, which utilize an efficient cloud-based solution. Not only did the company’s platform come before their competitors’, but their unique take on the formulas used, and the products’ applicability for clients in the commercial space, give them an incredible advantage in the market. As the company’s sales have grown (which they continue to do today), the distinct nature of the company’s offerings has let them easily branch out to address other well-known problems in the remote sensor sphere. Some of their products include detectors for flooding, pipes, power failures, and a myriad of other issues. These sensors can send alerts through email, text, or both, making for a convenient way to keep an eye on one’s property.
All of their products were designed exclusively for this company, and are both manufactured for them, and sold entirely under their brand. Out of their 12 SKUs, their power failure detector has been their most popular. However, their water and mailbox detectors have seen a rise in sales lately, along with their multi-sensor, which conveniently combines power, temperature, water, and continuity alerts into one neat bundle. Unsurprisingly, the company’s products have been very well-received among customers, especially by those within the homeowner demographic. They see consistent sales throughout the year, and their Amazon platform, which makes up 90% of their gross revenues, is full of enthusiastic 5-star reviews. They’ve acquired a 4.5 Seller Rating, and an Average Order Value of $55.
While they also sell from their Shopify website, Amazon has afforded them several other benefits. Their products are all listed on Seller Central and sold Prime, with 90% of their shipments being sent through Fulfillment by Amazon. This saves the company some of the headache that comes with inventory management and keeps their shipments quick and organized.
The company has successfully built a reputation for itself within a rapidly growing market. The global smart home market is currently valued at $99 billion and is projected to reach an incredible $174 billion by 2025, with a CAGR of 13%. Smart Home Technology has been able to rise at such a breakneck pace thanks to the safety and convenience that wireless connectivity offers. By connecting their devices and appliances to the cloud, home and business owners can keep an eye on their property even when they’re away, all from the comfort of their smartphone or laptop. Home automation systems that manage room temperature, appliances, home security and alarms, and lighting have seen especially strong demand among customers and are likely to only see more interest as consumers become aware of their perks.
Thanks to careful planning, the company has been able to spend remarkably little on PPC ads on Amazon, Google, and Microsoft to garner attention. Though their current ad campaign has been highly effective, improving upon their digital marketing would be one of their best scale opportunities. Social media marketing in particular could be very effective, as by cultivating their currently inactive Facebook account, and expanding onto other popular platforms such as TikTok, Instagram, Twitter, and YouTube, the company could drastically increase the rate of organic traffic to their Shopify website.
An email and SMS marketing plan would also be a great way of boosting sales, allowing the company to keep new and old customers alike updated on the latest product releases, any discounts, or other information that they would like to share. This would be an effective method of generating more upsells, and strengthening a sense of brand loyalty among their customers.
Outside of marketing, they would see fantastic results in adding to their existing product line. They already have two new products in development, consisting of an Emergency Button and Battery Monitor, which are expected to increase sales. By expanding into new categories, such as home entertainment systems, driveway alarms, and other appliances, they would be able to appeal to an even wider consumer base, and strengthen their hold on the market.
The company could also cultivate sales within the B2B market by both marketing their existing products towards businesses and other commercial properties, and making new products specifically for those demographics. Wireless alert systems are vital in keeping property safe and secure, giving the company a fair amount of potential in finding B2B clients.
One of the many benefits that this acquisition has to offer is its turnkey management, with the current owners spending only 20 hours a week running the business. Their daily operations consist of sending products to FBA, tracking deliveries, and placing new orders, making for a company that is light on work, but heavy in profit. Additionally, thanks to Amazon managing much of the work, the company has no other employees outside of the owners, saving them money.
As technology marches on, the smart home industry will only continue to grow more advanced and useful for the average consumer. Thanks to their high-quality, proprietary products, the company has taken advantage of the recent surge of interest, propelling themselves into prominence within the market. With ample room to scale, and wide applicability within many consumer bases, this deal is very much a smart one.
Contact Website Closers today to hear more about this excellent offering from our brokers.
This IT Company is Represented by:
Technology & Internet Business Brokers