This business is an eCommerce Retailer that offers products in a number of categories, including Musical Instruments, Sporting Goods and Essential Personal Items. Sales primarily generate via Amazon.com where they hold the Buy Box on a large number of the 6,000 SKUs sold. All suppliers are located in the United States. The business has achieved exponential growth since inception and continues to see significant profit growth throughout the COVID0-19 pandemic.
A unique opportunity across several high demand verticals, this business has perfected the unique approach of identifying and sourcing high-demand, high-profit products to ensure market demand. The business requires minimal capital operating investment, and significant market share can be captured with minimal ad-spend. This is a clean, focused operation ripe for international expansion and continued growth.
The Company’s books and records are clean. A qualified buyer has the opportunity to acquire this business very easily and at very reasonable interest rates, using our Lending Partners.
This target uses software tools to identify the most profitable products sold on Amazon, and that can easily be sourced from other US-based suppliers online. They then quickly list those products to take advantage of the high margins.
Over 6000 SKU’s are divided among some of the most in demand market segments in e-commerce, including musical instruments, sporting goods, and essential personal items. Inventory is divided into:
-Musical instruments (Guitars are the biggest seller)
-Sporting goods (make up 70% of sales)
-All types of home repair and maintenance items
All products are 100% USA sourced, creating a short lead-time. Drop Ship makes up the majority of shipping, less than 5% is done via Amazon FBA stock – requiring little to no warehouse space. The fulfillment center prepares products by removing supplier details and pricing, and the business usually receives a minimum of 20% margin on all products.
This is a largely hands-off opportunity once a cadence is established. Current owner dedicates 20 hours a week identifying products, placing orders, and general customer support. There is one virtual assistant, which could easily be expanded to two. No warehouse is required (current facilities maintain a 200 sq. ft. space to process returns), so, new owners are free to set up from anywhere they wish. Additionally, no inventory means no unsold inventory to manage, and a minimal initial investment.
No huge working capital needed – a credit card with a limit of $40,000 and a running balance of $35,000 in their business account has been sufficient for current owners. Whatever is spent on purchases comes back through Amazon in 14 days. And cash back from credit card points is a whole additional personal revenue stream.
Some Amazon targeted marketing around top-selling products and around major selling days such as Prime Day and Black Friday has been invested in, but SEO efforts to bring buyers to the website have been amply successful up to this point.
Scaling opportunities here are sizeable – mainly leveraging the prestigious and well established Amazon account for easy approval to sell some of the most well respected names in the world including COLUMBIA, ASSICS, PUMA, BROOKS, HURLEY, CUISINART, BLEU DE CHANEL, YETI, HUGGIES and FOLGERS – to name a few. A strong relationship with suppliers, allows for an immense opportunity to scale up inventory with in-demand and exclusive products. New sales channels can also be explored, including eBay, Walmart, and Etsy, as well as international expansion which could see profits, skyrocket nearly instantly.
This is a gem of a business – well established and with a fantastic model in place. It’s simply waiting for a person who can identify the right kind of profitable products to keep its momentum. Do not let this one pass you by.
