Website Closers® presents an Amazon FBA company that has developed a strong following through their line of 21 proprietary wall posters. Designed and printed specifically to sell under their brand, their status as a fully trademarked and copyrighted business has given them an air of exclusivity that puts them a step above their competition. The current owner has based the business model around identifying promising design themes that will appeal to a large audience while still falling within their existing product categories, which has led them to specialize in motivational and educational posters for classrooms, homeschools, and learning centers.
Their process of designing new poster concepts consists of the following steps:
The business sources their products from multiple suppliers, with their best-selling posters being sourced in bulk from one supplier, which significantly reduces the cost of sales. Posters with lower sales are sourced from a US- based printer — which, thanks to their closer location, lets them quickly bring a new product to market and test it on Amazon without placing a bulk order. Their posters are then packed in rigid mailers and shipped off to Amazon facilities.
With the exception of the times of year when Amazon imposes inventory limits, all SKUs are warehoused and fulfilled via FBA. When necessary during peak seasons, they ship some items from a local warehouse.
Inventory orders are placed two to three times annually with their printer in China. Payment terms are a 30% deposit and the remaining 70% upon completion of goods, and there is a 30-day production time and 60-day shipping time to Amazon’s FBA warehouses. The printers send pictures of the finished goods before the final payment and shipment process.
As needed, the company hires a 3rd party inspection service to make sure product quality and labeling is satisfactory before goods are shipped out. With their US printer, orders are placed as needed, and in varying quantities, which heavily depends on circumstance.
Roughly 70% of all their stock is held at Amazon’s FBA warehouses, with the rest being stored at a domestic warehouse. This remaining 30% is typically used for reserve inventory and shipping to Canadian FBA warehouses to replenish inventory. The owner prefers to keep anywhere from 3 to 6 months of inventory in stock for customer orders.
As the company’s products are designed to cater to a broad audience, their customer demographic is broad. They use a combination of paid advertising and SEO strategies to market the business, and at the moment, no off- Amazon tactics are used.
The owner needs only 4 to 7 hours every week to handle operations, which, given the fact that no employees or contractors are necessary at this stage, makes it all the more impressive. Their daily operations have been made incredibly efficient and straightforward, which makes running the business a breeze. The current owner’s key responsibilities include:
There are many different scale opportunities available to the brand, which only needs an ambitious buyer to take them to dizzying new heights. One of the quickest and easiest ways of scaling would be by adding new poster designs and finding future best-sellers, which can be accomplished by testing with the non- bulk printer before rolling out production in full. Additional motivational posters that play off the success of 2 of their existing posters would be one fantastic option worth considering.
They could also explore canvas print options through gallery wrapped canvas, since currently all posters are printed on cardstock paper. This would allow the products to appeal to a wider audience while increasing Average Order Value and revenue. They could then expand this across multiple SKUs and introduce varying sizing options for an even stronger appeal.
Adding poster designs in new categories and themes to reach new audiences could also give a healthy boost to the brand’s revenue.
Their marketing campaign can also be polished through improved PPC advertising and SEO optimization on their product listings and descriptions, which can be done in part by researching high-volume search phrases. If the buyer doesn’t have much experience with Amazon or marketing, they could outsource these efforts to a reliable agency, sit back, and wait for their sales to rise without compromising their light workload.
As the company has thrived within the US and Canadian markets, further international expansion would be a great move for the buyer to make. Classrooms, schools, and other learning systems can be found just about anywhere around the world, which means that there is no shortage of potential customers for the company to target. Their posters could find an easy home even in non-English speaking countries thanks to English classes, and they could make even more profit by translating their posters into other languages.
Speaking of expansion, selling on new platforms outside of Amazon, such as Etsy, Walmart, and Shopify would create and diversify new streams of revenue, bringing in significantly more profit and making their products much more accessible. They could build up these new channels by starting off-Amazon marketing efforts, and make their brand far more publicly known as a result.
A buyer doesn’t need much experience to manage this lucrative, highly optimized offering, making them a great option for new and old entrepreneurs alike. While having some knowledge of Amazon and design skills would be helpful, neither is necessary, and the current owner is happy to work with the buyer throughout the transition process to make sure the business enjoys continued success.
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