SellerForce® presents an online eCommerce brand that has left their customers abuzz with their diverse lineup of electronics. Selling exclusively from their Amazon storefront, this company markets a range of cameras, camcorders, small electronics and some video games, all of which are based within lucrative and high-demand markets.
The nature of their products means they see a high return on profit with an Average Order Value of $205 and an average Customer Lifetime Value of $400. It also means that the categories that the business operates within are difficult to enter, making for little competition, stronger sales, and better profit margins.
As their products fall under various trusted brand names like Nintendo, Sony, and Nikon, customers are guaranteed a satisfying purchase whenever they buy from the company. The fact that they have access to such valuable product categories has allowed their SKUs to speak for — and market — themselves, giving them a monthly traffic volume of 2,500,000 with zero ad spend to speak of.
Their business model also means that while their SKU count is high, their inventory is light, requiring no warehouse space to function. Not only does this mean that operations can be managed from anywhere in the US, or in either a home or office setting, but it also means that their model is incredibly low risk for their owner to maintain.
The simple and straightforward nature of the company serves as an excellent foundation for scaling, and the buyer will find that there are a fair number of ways for them to do that. Their lack of a marketing plan, for instance, could either be kept as is given how well they have performed without one, or alleviated through the implementation of PPC on Amazon.
Adding to their already extensive SKU line would be one of the best and most direct methods to scale. They could add private label tech accessories, or expand to other, similar product categories such as microphones, keyboards, or even gaming chairs, depending on which direction they would like to take the business. The sky is the limit in terms of where they can go from here. So long as high-quality inventory continues to be added over time, it’s likely that the brand will be able to witness steady growth with little effort on the buyer’s part.
The buyer could also elect to hire on a VA and train them in sourcing activities, which would make getting new inventory much smoother, and cut down on their workload. Though the current owner needs a modest 20 hours per week to manage the business, the right moves and strategy could easily make operations turnkey to save on time moving forward.
If you’re interested in this shocking acquisition, then contact SellerForce to hear more details from our brokers today.
Listing ID: SF171
