Website Closers® presents an eCommerce business that has found a thriving space on Amazon by marketing high quality fabric storage bins via Amazon’s FBA Program. Within 5 years, the company has become a clear leader in this niche space, appealing to both homeowners and business owners who have found their decorative SKUs to be practical, useful, and ideal for organizing files, common household items, bathroom supplies, book and CD collections, and so much more. This is one deal you wouldn’t want to toss in the bin. The key to their success has been focusing on product quality, particularly by ensuring their SKUs stand out and offer something that consumers can’t find elsewhere. Doing so has enabled this brand to pop among the competition on Amazon, and there is tremendous growth potential in this highly profitable business.
The major challenge for any new business is finding the target audience for a product line. This brand has found its ideal marketplace on Amazon where Customer Acquisition Costs are low and the ranking a brand receives from great reviews, excellent customer service and smart pricing gives the brand open access to millions of potential customers that enjoy the easy shopping experience associated with Amazon. While the brand does have its own proprietary eCommerce website as well, the vast bulk of sales are conducted on Amazon, which has proven to be a plentiful and revenue-generating venture for the company. DTC still remains an option for this brand, but it just hasn’t been the focus.
The products are entirely unique. This company started out with the intent of selling something that was relatively common and popular among consumers, but with a specialty design and appealing look that customers couldn’t find elsewhere.
Their products are sourced from a single factory, and everything they sell is manufactured specifically for them. Their fabric storage bins are created using different styles and designs, and the company continues to develop new products consistently, so that today their SKUs have grown to a hefty 165 products. Their entire selection is available on Amazon.com, helping corner their market.
At an Average Order Value of $35.70, sales have been exceptionally strong. Sales are diverse in that a single product doesn’t dominate their revenue stream. Their top seller is a woven storage box, but it represents just 9% of gross revenue. Their second biggest sellers, a foldable storage bin and storage basket bins, each represent 5% of overall sales, so the company benefits from having revenue drawn from a wide cross section of their many SKUs.
The customer base is strong and growing. Since capturing their target audience, sales have remained healthy throughout the year with no obvious seasonality, although in contrast to many companies that rely on a big jump in revenue over the holidays, their practical products enjoy moderate sales increases from January to March — typically the time when people make New Year’s resolutions to reduce their home clutter and seek out solutions such as storage bins.
Sales Are Strong with Minimal Ad Spend. One of the biggest advantages to selling on Amazon is the platform is highly effective at promoting products on its website once the seller invests in PPC ads. The brand has relied on Amazon’s in-house marketing programs, and this has turned out to be a very successful marketing plan. This has saved the company from a much larger budget spend on its advertising efforts, while still managing to attract a healthy customer base. The benefits of using Amazon have gone beyond marketing. The company operates on Seller Central and offers a subscription plan to its buyers.
Given their modest ad campaign, there is plenty of room to scale by either increasing their advertising budget, or investing the money they save through that low ad spend into multi-market expansion. Running PPC ads on Google could boost traffic, as would investing in affiliate or influencer advertising. Tapping into international markets as offered by Amazon would increase reach, and the options for this are vast.
What’s impressive about this company is how they took a common product and developed their own stylish and handsomely designed versions, and then found their buyers in huge numbers by making their products available on Amazon. Imagine how rapidly sales could increase by introducing their products to other popular sales channels, or in different countries? The use of a digital marketing strategy would likely be a significant game changer for their profitability as well.
What this company needs now is a buyer committed to taking this enterprise to the next level, building on the strengths it already has. Contact Website Closers today, because we’re ready to outline for you the amazing opportunities available through this acquisition.
