50% Profit Margin – Amazon FBA Store focused on Homebrew Tap Handles with 5 Star rating & 250+ Reviews

Asking Price:
$67,000
Sales:
$54,500
Profit:
$25,600
Year Established:
2018
Multiplier:
2.6x

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A SellerForce offering, this thriving Amazon FBA business operates in the homebrewing niche of eCommerce.

Homebrewing is witnessing an upward trend in the U.S., with residential brewers producing around 1.4 million barrels of beer annually. Brewing machine and accessory suppliers have used this trend to their advantage by offering residential options at an affordable price.

Product sourcing is first-rate. The owner works with a company located in China. Within the company, he has a sourcing agent that assists in researching various products, placing additional orders, and helping handle all the logistics in China. When an order needs to be placed, it is as simple as emailing the sourcing agent and letting her know that additional inventory is required. Next, they contact the manufacturer and get all the specific details. Finally, if any negotiating needs to be done with the manufacturer, the sourcing agent assists with that.

The typical customer is someone who has a home bar and crafts their own beer. They are males between the ages of 21 and 45 and are passionate about home brewing. Homebrewing or having a home bar is more of a hobby and attracts a clientele willing to spend money.

The tap handles are incredibly high-quality, and adding additional accessories and complementary products are at the fingertips of an owner with more time to scale the operation.

Introducing additional products is an obvious next step and will undoubtedly boost revenue and increase cart totals at checkout. Items like custom beer glasses, drip trays, taps, and coasters are some simple SKUs to add as upsell items. Expanding the range of handles as a core product would be straightforward with the current supplier and the excellent relationship the owner has built with them.

Scale opportunities are rife. As successful as this business is, there are abundant opportunities to scale. Building a Shopify website, for example, would help drive D2C traffic and expanding to secondary eCommerce platforms would introduce their products to the millions of existing users.

Additionally, the niche lends itself particularly well to social media marketing. It has not yet tapped into the industry’s immense influencer marketing opportunities, affiliate relationships, Pinterest, TikTok, or a focused email campaign. All options have shown a great return on investment in this niche and can easily be outsourced to specialists or agencies if necessary. The possibilities to scale this operation drastically are endless.

It’s an attractive business for a first-time buyer in eCommerce because of its inventory model and highly systemized operation. A new owner will integrate seamlessly with little training. The company requires minimal work and gives a prospective buyer the freedom to focus on expansion or pursue other interests while enjoying the benefits of a profitable and growing business.

On the other hand, an eCommerce or digital marketing expert can scale this business enormously in little time and achieve a quick and highly lucrative return on investment.

Contact SellerForce today to find out more about how to scale this ale business and hop into a profitable business.

Listing ID: SF87

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