SBA Pre-Qualified Amazon FBA eCommerce Business | 4 Brands | Multiple Categories, Including Kids, Toys, Home & Kitchen | 15 Years in Business

Pending

Website Closers® presents an SBA Pre-Qualified Amazon FBA eCommerce Business with 15 years of experience selling online in a diverse range of top categories, such as Clothing, Jewelry, Toys, Baby Care, and Home and Kitchen. Offering 4 separate brands, the company has built up a loyal customer base for consumer goods that buyers want for all their party and celebration needs.

With SBA Pre-Qualification, the business has already gone through an initial underwriting process with our lending partners, who have approved this business for a Small Business Administration backed debt facility. This means that a Qualified Buyer could acquire this stable business for as little as 10% down with the balance of the SBA Loan amortized over a 10 year period, all at industry-leading interest rates.

Amazon.com Operations

With nearly 500 SKUs for sale on Amazon, the company has grown impressively over the past decade and is now shipping a whopping 1,300+ orders daily. Their customers have responded very enthusiastically, providing the company with a 4.8 Seller Rating on nearly 100,000+ reviews. This has given the company consistently strong year-over-year growth as the business appeals to an increasingly broad customer base. The company is expanding that base by driving sales higher for dress-up and birthday party items for children, household parties, and items for special occasions for adults.

The company has thrived on its Amazon platform, where sales are strong on a $25 Average Order Value … the perfect price point to sell on that platform. The company continues to grow by introducing new designs every year, ideal for keeping their existing customers interested in upsells and cross-sells. Underperforming products are routinely replaced with new ones and the company continues to invest in new product development, in-house.

The company has also relied on Fulfillment By Amazon (FBA) for fast shipping and first-rate customer service and has branched out to include a presence on Walmart as well.

This business represents a clear opportunity for a U.S. Buyer to acquire this company and then scale it quickly by continuing to expand international sales in Canada and Mexico through Amazon’s platforms and continue to expand the number of product categories they sell items in. There are also strong scale options by focusing on the European market. Finally, the company has never really focused on DTC sales from their websites, but this represents a significant opportunity, including pushing the brand on social channels to drive traffic to the websites.

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. SBA Pre-Qualified. A qualified buyer has an excellent opportunity to purchase this thriving online business (at full asking price) for as little as 10% down since this company has been prequalified for SBA Lending through our lending partners. Payments to an SBA Loan are amortized over 10 years at attractive rates. Considering this company’s strong profit margins, rising sales, and appealing outlook for the future, this is a major opportunity for a buyer to get into an evergreen and lucrative vertical.

2. Effective Marketing Campaigns. The company has discovered that PPC ads on Amazon are a highly effective way to drive sales. Their research indicates that customers are loyal to Amazon Prime, even more so than to a specific brand, so the company works to maintain top rankings in their best-selling categories. SEO is also a key aspect of their marketing strategy: their listings are fully optimized for top-performing keywords, and they use high-quality photos to promote them. With plenty of 5 Star ratings from satisfied customers, the company has been able to expand its customer base with a minimal financial investment in its advertising costs

3. Experienced Team in Place. Daily operations are efficiently managed by an experienced, highly trained team that includes a general and supply chain manager, a head of logistics, a marketing manager, and a photographer. This has enabled the current owner to work as little as two hours per week on the business, often focusing on operational reviews and reviewing financials. The company’s data-driven team of 6 individuals is based in Pakistan and has a strong knowledge of how Amazon operates and how to maximize sales in this marketplace. The team provides 24-hour support that includes monitoring Seller Accounts, optimizing listings, and launching strategic Ad campaigns. The team also manages vendors, SEO, and cost optimization, and oversees removing outdated products that are bringing in low sales. This experienced team, combined with the resources provided by Amazon, has made this a highly turnkey operation.

The Company

Initially launched 15 years ago, the company’s profitability has grown steadily as it has branched out to include four separate brands in the Party Supplies niche. Each brand has a comprehensive selection of products for customers to select.

The company has also excelled at its intellectual property, another valuable asset that a buyer receives. That includes the work of an in-house team that designs all products which have been branded by their four trademarks. This proficient team understands the target audience for each separate brand and knows how to optimize all listings to ensure these products become top sellers.

Their catalog continues to expand, as the company continuously pushes for products that are in demand and have low competition. The company always maintains nearly 500 products, and this has significantly boosted its brand recognition among customers who have come to rely on them as the go-to platform for all party supplies.

The company maintains strong relations with its suppliers. All products are imported from Asia and sent to a domestic 3PL. The products are then sent to Amazon FBA for shipping. To keep up with high demand, the company places large volume orders with its suppliers, which enables the business to take advantage of discounted prices.

This is a highly profitable industry. The global Party Supplies market is now valued at $16 billion and is projected to grow by 8.5% to a value of $28.5 billion by 2030. Consumers are allocating more of their disposable income to organizing memorial parties, special events, and social gatherings, and this company with its four trademarked brands has become a leader in this niche vertical.

With a large catalog that is constantly updated, plenty of glowing reviews, and a solid marketing plan in place, a new owner can allow the workers now in place to continue overseeing daily operations, while focusing on scaling this business. With the offer of an SBA loan on the table, this becomes an even more appealing opportunity for a buyer.