Website Closers® presents a successful product incubator in the eCommerce Space that has become a high-profile 3rd Party Seller on the Amazon.com Marketplace. This company operates in a number of different verticals under one brand name, more exciting than that, the key to this company’s growing cash flow and mix of categories are the R&D and Launch strategies behind the brand.
This online business is the quintessential Amazon FBA Business – they have mastered Amazon’s A-9 Search Algorithm and have a tried and true system for finding product opportunities on Amazon to rank their products quickly after getting them to market … sometimes ranking in the top 10 within days. Now that this system is in place and proven, all that is left is to scale unimaginably leveraging strong future product launches.
While any category can be the focus of this business in the future, at the moment the launch strategies are concentrated within a few select areas including, Sports Equipment (Fitness and Games), Gifts, Toys & Games, Sport Memorabilia, Home Décor, and Office Equipment. The brand continues to grow consistently each year and has a strategic plan of action for 2021 in place already. The company has historically hit its targets and is scheduled to gain $3.9M in cash flow alone in 2021. As a 4-year-old business, the operational arm of the company has more than proven its capabilities on the Amazon.com sales channel.
Not only are there tremendous opportunities for additional product launches in 2021 (some of which are already in the pipeline), the new products chosen are very well positioned to begin selling on additional sales channels such as Walmart and Target. By beginning to focus on driving traffic to its branded Website, adding Affiliate and Influencer Marketing, and moving to other International Amazon countries like Canada, UK and various EU countries; this company is set to grow dramatically in the coming year.
This is a platform business. What we mean by this is that this business would be a great foundational acquisition where the team in place could not only focus on organically growing the business through the aforementioned scale opportunities, but also grow through further Merger & Acquisition bolt-on opportunities. Ownership is willing to remain involved, if the buyer agrees, and is open to retaining equity should a buyer be interested in that path as well.
The business has an expert team in place that is seen as the biggest value proposition for the company as a skilled and reliable staff can be very difficult to find. This team knows how to select products and how to launch them – every single product that has been launched to date has done well – each and every one of them a home run. Carrying clean books, records, and tax filings, this business is ready to undergo due diligence. An outsourced CFO team is currently in place to handle questions related to the books.
Regarding the team more specifically, this Internet Retailer has taken a specific approach to how they choose the products they sell. Their system has proven itself to be successful in all products launches so far. The company considers margin, competition, barriers to entry, ranking opportunities, longevity, and intellectual property capabilities when deciding on a product to add to their balanced selection. This experienced company knows all of the tools of the trade when it comes to product listings. From creating solid keyword-focused rich content, to stellar images and videos, as well as strong ROAS ads to promote sales the SKU lines of this company are well protected against disruptions and unprecedented events in any one category, which results in lower than normal seasonality.
As a true testament to this unshakable system, COVID has had no real impact on the company’s overall profits and results. Seasonality and Concentration are not a concern with this business, so if one or two SKUs were to go out of stock, or becomes difficult to source, the overall sales continue to run strong.
The company is launching several more products on a go-forward basis, so a new owner will be well positioned with not only a highly diversified array of exceedingly profitable, well reviewed products across a number of verticals, but will also have access to many new products that are likely to see the same success that categorizes much of this brand’s impressive track record.
With a low necessary workload based on current sales, this business requires little oversight and is already scaling organically on its own. A new owner can choose to run the business as is, and reap the rewards, or to invest in the growth of the company, which would primarily consist of acquiring new of inventory and selling on other channels as well as internationally. Leveraging Amazon’s streamlined tools, these paths to expansion are sure to be easy to traverse.
Situated for significant and seamless scaling in a variety of ways, this business is ready for expansion onto almost any international channel. Developed with growth in mind, this company could easily branch into the Amazon Europe and Asian markets, wholesale brick & mortar sales, distribution to other online retailers, and even other segment-leading channels such as Target.com, Overstock.com, Wal-mart.com, which are all potent ROI investments. This business is a ripe opportunity for the entrepreneur of almost any skill level and business goals.
