WebsiteClosers® presents an SBA Pre-Qualified eCommerce Business with 3 Brands under management. Products are sourced and designed in-house to reduce competition and increase quality. The current product line is sold in the Health & Household, Personal Safety, and Multitools Categories, and each brand has its own Amazon storefront and separate Shopify websites.
As an SBA Pre-Qualified business, a Qualified Buyer can acquire this company for as little as 10% down, amortized over 10 years at industry-leading interest rates. This allows a buyer the opportunity to spend less up front money on debt service, and focus more on growth.
Amazon has proven to be a very strong platform for the company. A buyer would receive 3 Amazon accounts with healthy sales, as customers on Amazon give the company plenty of glowing 5-Star reviews.
The company is growing quickly. Having sold 900,000+ products since first launching, their products have become a favorite around the holiday season, when each one attracts peak sales as popular gift items. At an Average Order Value of $30, the company now processes 10,000+ orders per month during the holidays.
The company has developed an SOP and proven system for picking products and categories that are in high demand with consumers and using an in-house design team to build and source the perfect product for the market. Access to this system, the team and the processes used by this business will be an immediate win for a buyer, giving them the opportunity to use the current foundation of the business to create additional products in current and adjacent verticals.
Profits shot up by 70% in 2023 and were up an additional 22% by July 2024. This business represents a clear opportunity for a U.S. Buyer to acquire this company and then scale it quickly by continuing to design and launch new products to expand the customer base further and boost upsells, and by exploring new marketing tools such as video marketing on YouTube, direct sales on social media sites, and B2B co-branding partnerships with other leading retailers in their verticals.
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. Unique Proprietary Products. Marketing unique, specialized SKUs has been a key to this company’s increased profits, and to their becoming a Best Seller on Amazon. Their branded SKUs face minimal competition but have brought them more than 5,000+ highly enthusiastic reviews from satisfied customers. Their holiday sales remain one of the company’s additional strengths since their products are recognized as great stocking stuffers and gifts for any occasion. The company’s personal alarm has become a key player in this vertical, while their multitool does well in the Hardware Tool space, and a portable toothbrush cleaner is popular with those interested in oral care, and with frequent travelers.
2. Diverse Marketing. In addition to selling on Amazon and Shopify, this company diversified its sales channels through a successful Affiliates Marketing Campaign that now brings in nearly 20% of the brand’s revenue. With their affiliates given a commission for every sale they make, this has become a solid expansion tool for the company and a creative way to drive sales higher. The company has a smart marketing plan that uses PPC ads on Google and Amazon to attract customers, while their organic traffic is increasing thanks to an SEO program that fully optimizes their Amazon pages and Shopify sites. Each brand has its own social media platforms on Facebook and Instagram, and those posts are helping to bring 143,000+ unique monthly visitors to their sites.
3. Autopilot Operations. One way that Amazon has proven to be a financial boon for the company is their use of Fulfillment By Amazon, which provides fast shipping and superior customer service. That helped make this a highly automated company, even though they juggle three separate brands. This offering not only provides a new buyer with 3 brands facing minimal competition, but an equally minimal workload. The current owners are largely hands-off, working as little as two hours per week each. Tasks not handled by Amazon are assigned to three part-time employees, while PayPal’s Zoom manages customer reports and inventory management. The current owners focus solely on maintaining inventory levels and managing their contractors.
The Company
First launched in 2019, the company is owned by entrepreneurs that own other, now much larger companies. They have allowed this to run on autopilot without much recent work from them. Despite this, it continues to grow and a new owner can take this wonderful foundation and continue to build it by using the design team to build new product lines. The company has a strong and trusted relationship with its supplier, who manufactures these products exclusively for this company. The company stocks 100% of its inventory and typically maintains at least $1 million worth of available products at all times, especially around the busy holiday season.
While the company operates in three distinct verticals, its customers share certain characteristics. Many of the purchases being made on their sites are impulse buys, boosted by the company’s strong brand recognition and glowing reviews. A significant percentage of their buyers report incomes over $100,000, and their Repeat Customer Rate is rising for all three brands.
The company has also excelled at video marketing using social influencers who have been able to communicate the value, design excellence, and novelty of their products.
As the company’s profits continue to rise, it would be easy to scale this company simply by adding new products to the mix, which the company has demonstrated a talent for. Additional growth tools are readily available, including 200,000+ subscribers in their email database for future email marketing campaigns, and the company could also offer sales on social media sites such as Facebook, Instagram, and TikTok. This DTC brand could also begin launching B2B sales to retailers operating in their three verticals.
Another benefit for a buyer is that this is a very straightforward business. Anyone with a basic knowledge of how eCommerce in general and Amazon in particular can run – and grow – it. The company’s ability to design innovative products that appeal to a wide customer demographic is a major asset.
