Launched in 2015, this Amazon FBA brand has built a strong business primarily focused on providing kitchen and serveware for group gatherings.
The business has grown year-over-year revenue 16% despite a focus on gatherings and get-togethers. With COVID restrictions loosening, the market potential is strong as weddings, reunions, and family gatherings begin to return to normal.
A total of ten ASINs are currently sold. Revenues are well diversified as a percent of total sales with the top five ASINs representing approximately 32%, 29%, 12%, 9%, and 8% of sales. Additional diversification comes from selling on multiple Amazon marketplaces. At present, most ASINs are being sold on the US and EU marketplaces with revenues at approximately 75% (US) and 25% (EU).
Multiple built-in growth opportunities exist. First, the owner estimates ~$150,000 of sales were lost in the past year due to stock-outs and hijackers. Enrolling in Amazon’s Transparency program has resolved the hijacker issue. Capital and attention around inventory management will help solve the stock out issue. Further, there is a highly-rated ASIN performing well in the EU marketplace that can be easily launched on the US marketplace unlocking additional growth.
The brand name is trademarked in the US and the account is part of Amazon’s Brand Registry 2.0. Over 13,000 reviews have been amassed with the majority of ASINs at a rating of 4.5 stars or higher. In terms of the day-to-day operations, the business is run in a highly effective, lean way, with operations managed by the single owner working 10-15 hours per week.
The reason for the sale is that the owner is having a second child would like to spend more time with his family and focus on his other businesses. Having run the business successfully for over five years, he would now like to take some time off and turn his attention back to his family and his other projects. Note the business has been SBA prequalified; cash buyers will be preferred.
Asking Price
$699,000 + Inventory
Financial Overview
Revenue, Profit & Growth
Revenue
$1,536,220
Profit
$200,464
Growth Rate
3.49x
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