Website Closers® presents a 5-year-old Third-Party Amazon FBA Business that has excelled in a diverse selection of niche categories. They’ve developed strong relationships with their suppliers in order to offer customers with not only the best quality SKUs, but an incredible number of them, as well. From toys and teas to polishes and non-perishables, their customers walk away satisfied with whatever they might need to spice up their living space. They’ve achieved a remarkable 98% Positive Seller Rating on the Amazon Marketplace, and despite its vast lineup of products, their dependable Standard Operating Procedures and Protocols have let them function smoothly with minimal input from the owner.
The company has been approved for SBA pre-qualification by our 3rd party lending partners, which makes it much easier for a buyer to see quick ROI. A Qualified Buyer can buy the business for as little as 10% down, which would be amortized over a generous 10 year-period. The interest rates throughout this period are very reasonable, and give the new owner a stronger head-start than they would without an SBA loan.
While they currently sell over 900 SKUs from their storefront, the company also has an additional 6,000+ at the ready within their catalog. The products are sourced from their tight-knit network of suppliers, and rather than being selected from a specific niche, they’re instead chosen based on profitability and how easily the company will be able to sell them.
This selection process has let them excel in a variety of niche categories, including, but not limited to, home accessories, hats, arts and crafts, and novelty décor. The effectiveness of this business model is reflected in their high recurring revenues, and their astonishing 20%+ Profit Margins. A buyer will be able to enjoy strong, consistent sales, and an incredibly broad customer demographic.
The company’s network of suppliers has been developed and kept strong through their consistent integrity, honesty, and transparency throughout their deals and interactions. They have worked tirelessly to maintain a polished reputation and trust with the brands they work with, which has made the integration of new products a much smoother process. The fact that the company can so easily add new SKUs to their roster gives the owners a straightforward method of scaling the business and their profits, and adapting to changing market trends whenever necessary.
Another benefit that their close relationships with the vendors afford them is exclusivity. Most of their suppliers are partnered with only a small number of authorized sellers, and are against working with any new 3P businesses. Not only that, but for some vendors, the company is the only FBA seller that they work with at all. This keeps competition low, and makes them the sole distributor of certain products on the Amazon platform.
The company sells all their available SKUs Prime, and utilizes Fulfilled by Amazon to handle the burden of shipping and inventory. Without the hassle of paying for and maintaining a warehouse and its staff, a buyer can enjoy a fantastic base to build the business upon, while still seeing minimal overhead costs. Fulfilled by Amazon also makes it simple to manage the company’s vast number of SKUs, allowing for less of a struggle if the buyer is looking to add more to their product listings.
The structure of the business has let the current owner enjoy a workload of only 3 hours every week, which are spent on situational decision making and the occasional customer service response. The company’s only employees are made up of a virtual assistant and an operations manager, with Amazon and their suppliers taking care of all other key responsibilities. A buyer can expect a flexible, lightweight schedule perfect to mold around their daily life, and, a smooth transition into the role of the owner.
For how large the company has risen within a short amount of time, they have minimal ad spend, with most of their growth coming naturally. They could supplement their brand’s popularity through an active advertising campaign, which would bring in a massive amount of new customers and send their sales skyrocketing. PPC ads on Amazon, as well as frequented websites such as Google Search and Facebook, would be excellent places to start marketing efforts.
Of course, advertising is far from the only way the business can be scaled. Their success on Amazon would lend itself well to the website’s international platforms, such as Amazon UK and Amazon CA, and help the company develop a presence around the world. With new regions to sell from, their profits will soar, and they’ll be able to access a far larger consumer base than ever before.
Another option that a buyer could consider is to expand off Amazon and into other popular eCommerce channels, including Etsy, eBay, and Walmart. These businesses are well-known and trusted by millions, making them ideal for possible expansion. Alternatively, the company could focus on building their own independent storefront, and start selling DTC. This would let them make a much more direct profit from their customers, diversify their sales channels, and make their brand more recognizable to possible customers.
The best way to secure the business’s future growth would be to establish a management team. While their existing team is more than capable of running the company in their current state, a management team would help seek out new suppliers, maintain strong relationships with their existing network, and even persuade some to enter exclusive agreements with the company.
The business has a marvelous cash flow, a fast shipment rate, and quick lead times, thanks to their carefully made standard operating procedures. These procedures and protocols are well-documented, and will be given to the buyer post-transition. Additionally, most of the company’s SKUs have Minimum Advertising Pricing, or MAP, which keeps other sellers from sinking their prices too low.
This acquisition has a wholesale nature that allows for fast adaptation to market trends, a thriving network of high-quality suppliers, and an astounding amount of scale potential at its fingertips.
If you’re interested in this company, then contact Website Closers to hear more details from our brokers.
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Tech, Internet & eCommerce Business Brokers