Website Closers® presents an Amazon eCommerce Company in the Computer Accessories & Adult Toys Sectors. With totally unrelated product lines, the business has continued to grow year over year by offering proprietary products as well as products sourced through vendors, all while core focused on profit margin.
Amazon.com
While Amazon can be a highly profitable sales platform for sellers, it can also be a highly competitive one. Within that eCommerce environment, this brand has demonstrated how to become a success story. They did so by targeting two very distinct consumer groups: people who use specialized discs to enhance their computer or laptop, and couples or individuals who enjoy adult toys for their personal life.
Having found a receptive customer base for both sectors, this company has been in operation now for 5 years and has several strengths that a buyer should find quite appealing. For instance, as a high velocity Amazon Account, there are a number of immediate growth opportunities for a buyer to add products from other sectors and use the sales velocity of the current Amazon account to grow those additional products even faster. Sales velocity is understood to be an important ranking factor on the Amazon A9 Algorithm.
All products are conveniently shipped FBA (Fulfilled by Amazon Logistics Services) and offered with Prime 1- or 2-Day shipping, giving the company a reputation for fast shipping and deliveries and good customer service.
Purchasing a successful Amazon-based business can be a smart move. Launching on Amazon gives any entrepreneur instant access to an audience of more than 200 million Amazon Prime users across the globe. Millions of those active users shop on Amazon daily, and for those millions of consumers, Amazon has a solid reputation and has fully earned their trust. Those are some of the instant benefits that any seller gets from opening their shop on Amazon.
The Company
There are no seasonal factors impacting sales, which remain healthy throughout the year, and the company accomplished this without an advertising budget. Taking full advantage of Amazon’s internal marketing tools, the company has not spent any of its profits on advertising, which opens the door for a major scale opportunity in the future,
This is a business that an investor could take over with minimal working capital needs, and the new buyer inherits a business that is highly automated and will require very little in terms of time commitment. It is truly turn key and would be excellent for a stay at home mom or dad. Current ownership works just 1 hour per week running this business, which is otherwise performing smoothly and efficiently on Amazon.
This company has effectively demonstrated that its products don’t need to match the interests of a single customer demographic to become profitable. This is also a company well positioned to scale rapidly under the guidance of a new owner, not just by adding additional products as noted above, but also by expanding sales internationally on Amazon’s foreign platforms for sales in Canada, the European Union, and so on. Both computer discs and adult toys remain popular items across the globe, and this company could expand rapidly by launching products in those regions quickly and efficiently using the FBA system.
Operations
In the 5 years since this business was first launched, the company has successfully targeted both adult products and their software discs as top sellers. Their software disks are proprietary, manufactured directly for this brand to sell, and their discs include a Windows emergency boot, discs to reinstall all versions of Windows so it can recover, restore, and repair files, and a password recovery disc.
Their adult products, designed for men, women, and couples, are manufactured by a reliable supplier.
Most of the brand’s daily tasks are conveniently handled by Amazon, including shipping and customer service through FBA. The current ownership’s main task is to boost inventory every few months as needed to keep up with orders, with their discs delivered directly from the manufacturer to Amazon. The adult products are sourced from China, and delivered to the company’s office to be inspected for quality before they get shipped to Amazon.
This has made operations particularly smooth and efficient for the current owner, who devotes less than an hour per week to managing this business. The owner has no employees as most tasks are handled directly by Amazon, where this brand operates on Seller Central and maintains a sky-high 98% Seller rating.
The company has discs that have been awarded an Amazon No. 1 Best Seller Badge, and their products are also sold on Prime.
With 9 SKUs available at an Average Order Value of $12, their sales remain highly consistent throughout the year, with a peak around the holidays.
Low Marketing Demands
While many new businesses invest heavily in advertising to reach their customer base, this brand has gone in the opposite direction, doing zero advertising of any kind. This hasn’t hurt the company’s sales at all, which again demonstrates the effectiveness of operating a store entirely on Amazon. With millions of customers worldwide and Amazon’s internal marketing tools working on the company’s behalf, all their sales have come 100% through organic Amazon searches.
This is a significant opportunity for a buyer moving forward. A buyer could seek to boost sales higher through paid advertising, including a PPC ad spend on Amazon and Google, to introduce their products to a wider audience.
The buyer could also pursue higher organic traffic by launching social media marketing and email marketing campaigns to attract new customers.
The bottom line is that with less than 10 products, the company has become a cash cow that provides steady recurring revenues to the owner, while not requiring much in the way of daily input to keep it functioning. The current owner has estimated that a buyer would start out with minimal working capital needs, less than $8,000 to keep operations running smoothly.
The company also offers a buyer the opportunity to take over a company that has massive growth options. How rapidly the company’s profits skyrocket will depend entirely on how ambitious the new owner is.
