A SellerForce offering, this thriving Amazon FBA business has hit its stride by providing high-quality products in the Home Brewing Vertical. Its unique tap handle lets customers easily keep track of their latest brews, making for a simple, but highly effective addition to any customer’s bar.
The brand has quickly achieved an impressive 30% net profit margin, an Average Order Value of $50 USD, and a glowing reputation that will make any future expansion a breeze.
While homebrewing is a niche market, it has been seeing a massive influx of interest in the past few years. The American Homebrewers Association, or AHA, has estimated that there are about 1.1 million homebrewers in the United States, with 40% of them having picked up the hobby the last 4 years. Homebrewers consider their craft an artform of its own right and are naturally prone to picking up the best possible products they can for their personal bars and taprooms.
The business has grown rapidly alongside this demand, with a vast majority of its customers coming away pleased. Their key product is rated 4.7 stars based off 230 reviews, many of which praise the quality of the wood that’s used for the tap and its customizability. While home brewing is a year-round hobby, they’ve seen a higher number of sales around the holiday season, as the product works as an excellent gift for the craft brewer in a customer’s life.
The current owner spends only 1 to 2 hours per week running the company, which are used primarily to optimize their Amazon PPC advertisements. The rest of the business is largely automated, with the owner relying on an experienced sourcing agent to help manage Amazon inventory shipments, negotiate with the manufacturer, and research new potential products. A buyer could easily take the next step to fully automate the brand by employing a virtual assistant to handle PPC, or utilize their light workload to focus on expanding the business.
In terms of expansion, the easiest way for the brand to grow would be to add more offerings to their product line. They could start selling an accessory for the brew machine itself, or other lucrative products that would appeal to the home brewer audience.
The company could also improve upon their marketing campaign by investing in PPC for Google or Facebook. Doing so would improve the amount of traffic that the products earn, and, in turn, encourage Amazon’s algorithms to make them and their products more visible to potential customers.
They could also create an official Shopify website to create a DTC sales channel, or even pursue global expansion. While the brand has only been making its sales in the United States, statistics have shown that the markets in Australia, New Zealand, and Western European countries have been seeing significant growth. Starting storefronts in these regions, whether by using Amazon’s international storefronts or other channels, show exceptional promise for building up the brand.
This acquisition is bubbling over with fresh potential. It has already become well-established in the homebrewing niche, and in the hands of a capable owner, it can be crafted into a top choice for hobbyists everywhere.
Listing ID: SF65