The target is a branded eCommerce Retailer in the high-demand Firearm Add-On and Accessories space, selling Rail Mounted Tactical Lights, Flip Up Sights and everything in between. Sales and Demand for Firearms are at a multi-year, all-time high and seem to be growing in popularity with every crisis and world event. This Internet Business offers a clean, manageable line of fully branded tactical, firearm accessories complimented by thousands of positive reviews on Amazon.com, with plenty of upside potential through an ever-expanding product array. Over 30 SKU’s are available at market, all sold under the Company’s Brand Name.
There are no SKU concentration issues, and strong average order values, making this an amazing investment opportunity with a bulletproof future. Over 30 SKU’s are currently sold under the Company’s brand with plenty of room for expansion.
A flexible model has worked well for this company, with website and eBay orders shipped out of the warehouse, as well any out of stock Amazon FBA products. However, due to Covid-19 and issues with Amazon Fulfillment time, the business recently transitioned to FBM , but now that the business cycle is returning to normal, there are plans to migrate most shipments back to FBA.
Amazon FBA sales account for 86% of all revenue with the balance coming from eBay and the company’s D2C BigCommerce site. On Amazon, current Seller Rating is 96% with 540 ratings over the past 12 months and over 7,000 product reviews average ~ 4.5 Stars, the brand enjoys a Best Seller badge history. When FBA is running ideally, average workload is light, running up to six hours a day max. One part-time employee is willing to stay on.
Minimal marketing spend has been necessary, as these products have always been the perfect combo of high demand and niche. The only channel used currently is Amazon PPC. Ad campaigns are kept lean and ACOS runs approximately 22% on $12,000 monthly ad spend. Due to issues getting inventory with Covid-19 advertising spend has been decreased since February and is currently less than $200 a month but despite this, the business continues to accelerate growth.
Scaling opportunities should focus on exploring new social media platforms through influencers, specifically Instagram, and direct media buys on forums and content websites. As expected, ramping up PPC campaigns and Google Ad spend, and expanding product lines are also revenue generators that are relatively easy to implement.
Enjoying 20% revenue growth and 146% profit growth, this is a well-established business, with clean books and standardized processes that will allow anyone to step in on day one and take it to the next level. The business can be purchased with as little as 10% down payment utilizing a SBA loan.
