The business is a unique player in the Trampoline Accessories sector, providing products at eCommerce (primarily Amazon.com) that support backyard fun, like Trampoline Lights, Music and Sprinklers. The company is very easy to run, using the Fulfilled by Amazon (FBA) model and has iterated over time to provide fun, attractively-packaged products that make trampolines more fun at a price point that sits in the range of impulse buy with many customers buying more than one product at a time. This branded and trademarked Internet Business has endless opportunities to scale by adding new products and expanding internationally. Current owners have product roll out plans laid out nicely, so new owners can step in to easily execute growth strategies.
The business is currently offering five equally successful SKU’s, which reduces any risk associated with concentration. The company also has a strong product development strategy in place with plans for several additional products to capitalize on the trampoline niche – which is ripe for innovation since there is very little competition.
All products are designed in-house and advertised under the company’s brand name. They have a trademarked parent brand, making them the exclusive sellers of all products. Owners have exclusive relationships with the production factories, which have proven to be extremely reliable.
Work is light – averaging three hours per week checking stats and refocusing ad campaigns with current operations. There is one part-time customer service rep who works remotely out of Las Vegas, and this is also where a third-party warehouse occasionally receives inventory in before it is ready to go to Amazon FBA. Owners work remotely, requiring only a small home office. There is a significant uptick in traffic over the summer months, and around the holidays.
The business focuses on sponsored ads during the peak season with a 19.3% ACOS. This is an exclusively Amazon centric business, and their average 4.8 star rating and solid seller feedback approval rating has led to an astounding 169% YOY Growth Rate. And the products speak for themselves – with stellar customer reviews and feedback.
Scaling opportunities include expanding products lines – mainly selling an extended line of accessories, replacement parts, other outdoor sports games or even trampolines and nets. Eventual expansion should include approaching big box stores and expanding to other marketing channels like Shopify, Walmart.com, etc., which represents low hanging fruit that has been untapped. This business can easily be scaled up with the right buyer to become the go-to backyard family fun brand.