WebsiteClosers® presents an Amazon-based eCommerce Brand in the profitable Home Appliances & Kitchenware niche that has attracted a fast-growing base of women customers who love how the shop targets its kitchen products to children, striving to help kids develop a passion for cooking and preparing fine meals.
With a successful shop on Amazon, the company has cultivated a strong following among moms with young kids who appreciate their 15 unique, proprietary SKUs manufactured for this business by two trusted and reliable suppliers. Their SKUs include one adult product, a three-pack of cut-resistant gloves.
Amazon has contributed significantly to the company’s success. Launched 7 years ago, the company has grown steadily thanks to the tools that Amazon provides, including fast shipping and customer service through Fulfillment By Amazon, which has enabled the current ownership to work as little as 5 years per week running the company. The company has also been able to rely on Amazon’s internal marketing to put its SKUs in front of customers and has a zero marketing budget.
With a $30 Average Order Value, the company enjoys steady sales throughout the year, with peaks during the holidays when their SKUs become popular as gifting items. The company has found its key customer demographics on Amazon, and its buyers have responded enthusiastically, giving their shop a 4.6 Product Rating.
This is a highly lucrative industry. The global Kitchenware Market is now valued at $65.23 billion and is projected to grow at a 6.9% rate through 2030. There are numerous reasons for the industry’s growth, including a growing number of consumers who love to cook, and a desire to find unique and specialized products that make preparing meals more enjoyable. Cooking classes for “Tiny Chefs” are also growing in popularity, as more businesses set up programs providing Kids Cooking Classes in schools, at parties and special events, at Cooking Summer Camps, and even online programs. This business has been riding this popular trend.
This business represents a clear opportunity for a U.S. Buyer to acquire this company and then scale it quickly. Opportunities include launching digital marketing tools such as PPC ads on Google and Amazon, starting a social media marketing campaign that includes influencer partnerships, and expanding into additional marketplaces.
Business Broker Takeaway
Our analysis of this business shows that the value propositions present are strong for a first-time buyer looking to get into the online space. We are excited about this business for 3 important reasons:
1. Streamlined Sourcing. The company’s products are sourced in Asia, and this business has developed a sharp edge over its competitors by having its suppliers manufacture mostly proprietary items that parents can’t find elsewhere and are unlike what other companies are marketing. The current ownership has developed excellent relationships with its suppliers. New orders get placed three times a year, and the suppliers are consistently reliable when it comes to processing them quickly and efficiently. The new owner will benefit immensely from the company’s streamlined logistics. All orders are shipped directly to Amazon’s fulfillment centers, so the company has not needed to invest in either a 3PL or a private warehouse.
2. Well Executed Concept. The business has created a solid leadership position in the field of kitchenware by directing its products toward a specialized audience. By targeting the Tiny Chef market, the company has quickly become a one-stop shop for high-quality cooking products designed for children. The parents who buy their products love that this company helps promote the joy of cooking and safety in the kitchen and helps cultivate a passion for cooking in their kids. All products were crafted with kid-friendly features and undergo rigorous safety testing designed to exceed industry standards. The company has helped put a lot of children on an exciting culinary journey, and their parents love going along for the ride as they experience the joy of cooking together with their little ones.
3. Scale Opportunities. Having relied on Amazon’s marketing to boost sales, a new owner has multiple impressive opportunities to grow this business and send profits soaring. That could include adding new product lines such as baking sets, kitchen utensils, and recipe books designed for kids, ideal for upsells and cross-sells to their existing customer base. The new owner could also diversify the sales channel by launching the brand’s first Shopify store while also expanding to new marketplaces such as Walmart, eBay, and Etsy to increase the store’s reach. Social media platforms would be an ideal way to engage with customers, and the company could use those platforms to partner with key bloggers and mom influencers in this fast-growing vertical.
The Company
This 7-year-old business has enjoyed rapid YoY growth and is now a Trademarked Amazon FBA brand, ideally positioned for strong growth in its niche space. In addition to its unique Kids Knife Set, the company has expanded and launched a series of color schemes for the Kids Cut-Resistant Glove space that no one else sells. All products are sold under the company’s brand name.
The Kids Cooking Space has been a fast-growing category, made even more appealing by the popularity of cable programs such as MasterChef Jr and the Kids Baking Championship, which whet kids’ appetites for the fun they can have mastering dishes in the kitchen. The company maintains a 4.8 Seller Rating on Amazon, where they receive rave reviews from parents who say their SKUs are ideal gifts for their kids.
This is a great opportunity for a buyer looking for an Amazon business with solid recurring revenues, a loyal customer base, unique proprietary products, and the ability to scale rapidly.
This Company is Represented by:
WebsiteClosers.com
Technology, Internet & eCommerce Business Brokers
WC 3510