SellerForce presents a company that brings not only quality products to their clients, but great laughs as well. The company created novelty gag gifts that have become a big hit with their buyers, particularly as gift items for events like birthdays and anniversaries, proving once again that laughter can be the best medicine.
The company also operates in the niche space of medical accessories, marketing armbands for diabetics using glucose monitoring devices. So, what connects the two?
The answer is Amazon.
This company operates the two shops on its Amazon FBA platform, and the idea of marketing novelty gag gifts and armbands for those with certain medical conditions was hardly accidental. To cut through a highly competitive eCommerce environment, the company spent time researching which products were in high demand but were facing low competition. Their armbands and their toilet paper roll with humorous messaging both fit that bill.
The result has been that the company has enjoyed solid revenue growth in the past three years, with very healthy sales on their Average Order Value of $12 for the gag gifts and $19 for the health bands. These are proprietary SKUs that customers can’t find anywhere else, sold under this company’s brand name, and they have matured quickly enough to now offer 100+ SKUs. Their future scale potential is enormous.
The brand is operating in a space that economists have recognized as a thriving one. With eCommerce entrepreneurs facing tremendous competition today when it comes to growing their customer base and attracting new buyers, oftentimes, it’s the best niche eCommerce stores that manage to attract highly loyal customers, without devoting a massive amount to advertising.
These companies are successful because they target a vertical overlooked by other businesses, such as handmade items, trendy designs on clothing, eco-friendly products, and more. Finding these niches has helped businesses succeed because competitors have neglected these items. The owners don’t need to advertise to everyone nationally but can use SEO and other tools to find their target audience more quickly. Virtually all niche products have loyal customer bases and finding them can quickly translate into a strong Repeat Customer Base if you’re the only game in town.
Let’s dive in for a closer look at how this platform grew so quickly. Amazon became their ideal platform. Operating two very different niche verticals was a smart idea, and so was operating on Amazon, which has proven to be the perfect choice considering the millions who now use the site. The brand’s toilet paper rolls with funny pattern designs and comical messaging have become a popular gag gift, and they enjoy strong word-of-mouth referrals from the recipients of the gift who recommend them to friends and coworkers.
Their comfortable and trendy armbands specifically designed for people with Type 1 and Type 2 diabetes wearing insulin pumps on a daily basis are also popular. The armband prevents the pump from falling off during everyday activities such as playing sports.
Amazon has given this company several advantages, including:
• Marketing. The company relies on PPC advertising on Amazon to drive sales.
• Reviews. The company has a sky-high 95% Seller Rating on Amazon and those reviews also help expand their customer base.
• Fulfillment By Amazon for convenient and fast shipping which improves their customer service and reputation among customers.
• Prime, which enables the company to offer subscription service to their buyer
Their SKUs target very different markets.
As a private label Amazon company in two niche spaces, the company has been able to boost sales through very different sets of buyers. Their novelty products have grown significantly, and that store now offers 68 SKUs, with different messaging for plenty of occasions (birthdays, weddings, etc.)
The diabetic armbands have grown to 36 SKUs with variations in color and style patterns.
These products are registered under their brand name. This company owns the custom dies for their toilet paper printing, while their armbands are sourced exclusively for this company. Both products are ideally positioned to scale quickly. The company could expand into new custom printed toilet paper themes such as presidents, celebrities, or sports teams, while taking these listings to other sales channels for additional growth.
Their armbands could be turned over to a new sales team that could help them expand from DTC sales to B2B by reaching out to doctor offices and other retailers that market products to those with diabetes.
It should also be noted that this is a very automated business that the current ownership operates without taking on a major time commitment each week, and without the need for staff. Amazon handles everything from advertising to shipping and customer service.
For this company, the biggest gag could be why other businesses never thought of this first. This brand has demonstrated how effective Amazon can be employed as a platform for niche verticals, and how to effectively find the kinds of customers who become loyal ones.
Contact SellerForce today to discover all the advantages this company offers a buyer, and that’s certainly no gag.
Listing ID: SF90