Website Closers® presents a Private Label eCommerce Brand that has been illuminating the tactical and personal defense market since 2007. They specialize in the sale of roughly 44 high-quality gun laser sights and tactical flashlights, which are sold at an AOV of $65 and target customers in personal defense, hunting, airsoft, military, and law enforcement.
The brand maintains their high standards for their products through a long-standing, 15+-year relationship with a trusted manufacturer. This manufacturer has worked with the company since their inception and has a history of consistent production quality, fast turnaround times, and a low error rate. Their products see little seasonality throughout the year, outside of a slight peak during the holidays.
Business Broker Takeaways
1. Diverse Sales Channels. The company sells through multiple channels, which consist of Amazon, eBay, and their own website. Amazon is their most successful storefront, accounting for 66% of their total revenue. They handle Amazon fulfillment through FBM and FBA, with the company handling their eBay and website stock themselves.
They currently maintain $250,000 in inventory, which is above their usual levels of stock. $100,000 worth of inventory is also included in the sale price for this deal.
2. Effective Operations. Current ownership dedicates 15 hours per week to their core responsibilities, which consist of fulfilling in-house orders, responding to customer inquiries, managing inventory, posting on social media, and placing manufacturing orders.
Their PPC advertising is handled by an outsourced PPC manager and currently makes up the core of their marketing efforts. They have no workers outside the owner. Their operations are structured in such a way that they can be run from anywhere, which will provide a buyer with strong flexibility and when and where they operate the company.
3. Large Customer Demographic. Home Defense is an expansive sector, which has been seeing a growing demand throughout recent years. The potential customers for this brand include, but are not limited to, the military, law enforcement, home defense, gun shops/hunting shops, shooting ranges, hunting and airsoft venues, and D2C customers. A marketing-savvy buyer could effectively target this sizable demographic for stronger profits.
Scale Opportunities
There are multiple avenues a buyer can take to make the most of this shining opportunity. They could start by creating more YouTube, Instagram, and Facebook videos advertising their products and making social posts every week. This consistent activity will boost their brand image and generate a flow of organic traffic, which they could supplement by regularly attending gun shows.
Outside of organic advertising, a buyer could invest in additional paid advertising efforts of Amazon, which would drive traffic to their website and other channels. With stronger marketing in place, they could also directly target gun shops, shooting ranges, and hunting supply stores and expand to more wholesale accounts.
The company can improve their Amazon profits as well by maintaining adequate inventory for the storefront in question. The brand currently stocks about 80% of their own inventory, with FBA holding the rest. By maintaining higher FBA stock, they could make operations more efficient and better meet demand.
Conclusion
This acquisition has a bright future ahead of them in the hands of the right buyer. Their well-established manufacturer relationship, diverse sales channels, and position in a thriving market provide a strong foundation for growth, which a buyer can utilize with improved marketing efforts.
