WebsiteClosers® presents an Amazon FBA eCommerce Company operating under 4 separate brands in the Herbal Medicine vertical. The company has blossomed into the lucrative position of the #1 Amazon Hookah brand, benefiting from unique market positioning, high consumer demand, and high barriers to entry.
This deal offers four different brands across different categories: Hookah, sanitary products, LED lighting, and their herbal brand. They have an AOV of $25 and over 500 SKUs spread across these different brands and own multiple exclusive molds for their own products to strengthen their competitive edge and product defensibility. No single supplier or customer accounts for more than 15% of their purchases or revenue, reducing dependency risk.
Business Broker Takeaways
1. Full Team in Place. The company has a full operational team in place, which includes, but isn’t limited to, 5 product managers, 1 accountant, 5 product designers, and 2 junior account managers. This team handles all design, logistics, procurement, finance, HR, and customer service, allowing ownership to dedicate just a 20-hour workweek to business development, new product ideas, and team calls.
2. Strong Marketing Strategy. Their Hookah brand is based in a niche that sees advertising restrictions, which prevent new competitors from scaling quickly. The company has overcome this barrier through a 95% organic sales mix for this brand, reducing their dependence on paid ads and serving as evidence of the popularity of their offerings. Another brand generates 59% of their sales organically. The company also utilizes a polished PPC strategy on Amazon, with the goal of holding the top 5 rankings for key product lines and driving traffic to certain new products.
3. Established Supply Chain. The brand utilizes a fully integrated supply chain with 3PL storage in the US, Germany, and Japan and smooth FBA integration. They also benefit from favorable, pre-negotiated supplier terms, which allow for deferred balance payments after goods are received. This improves their cash flow, which, coupled with their team covering logistics and procurement, makes the fulfillment process much smoother.
Scale Opportunities
The company is in a great position to scale through multiple avenues. One of the most straightforward opportunities a buyer could take would be expanding their product catalog by introducing additional SKUs and product variations. As they already have over 120 new products already in the pipeline for their supplements brand, investing profit from their established businesses into it could allow them to rapidly scale this new channel.
Another tactic the brand could take would be to remove poorly performing SKUs, allowing them to cut products that will not see profitability to better focus on developing and finding new, promising offerings.
The company could also pursue geographical expansion. While they already have a strong presence in Germany, there is ample untapped potential across other European markets, along with Australia and Singapore. By scaling operations in these regions, they could diversify their revenue streams and boost their reach.
Outside of these strategies, the company could refine their supply chain to reduce any out-of-stock situations and excess inventory, establish consistent branding across all marketplaces to boost brand recognition, and implement a multibrand strategy by selling the same products under additional brand names. They could then utilize AI to improve their efficiency, create dynamic pricing, and enhance their ad positioning and keyword tracking.
Conclusion
This offering provides the valuable opportunity to acquire the top brand of its niche on Amazon worldwide. They boast strong organic rankings, a diverse product portfolio across multiple brands, and a fully operational team that ensures smooth day-to-day management, among other benefits that a right buyer can use to their advantage.
The seller is also willing to provide transition support for one year, or longer via an agency agreement, which will ensure buyer confidence and continuity.
