Our firm presents an eCommerce business that has found a thriving space on Amazon by marketing high quality fabric storage bins via Amazon’s FBA Program. Within 5 years, the company has become a clear leader in this niche space, appealing to both homeowners and business owners who have found their decorative SKUs to be practical, useful, and ideal for organizing files, common household items, bathroom supplies, book and CD collections, and so much more. This is one deal you wouldn’t want to toss in the bin. The key to their success has been focusing on product quality, particularly by ensuring their SKUs stand out and offer something that consumers can’t find elsewhere. Doing so has enabled this brand to pop among the competition on Amazon, and there is tremendous growth potential in this highly profitable business.
The major challenge for any new business is finding the target audience for a product line. This brand has found its ideal marketplace on Amazon where Customer Acquisition Costs are low and the ranking a brand receives from great reviews, excellent customer service and smart pricing gives the brand open access to millions of potential customers that enjoy the easy shopping experience associated with Amazon. While the brand does have its own proprietary eCommerce website as well, the vast bulk of sales are conducted on Amazon, which has proven to be a plentiful and revenue-generating venture for the company. DTC still remains an option for this brand, but it just hasn’t been the focus.
The products are entirely unique. This company started out with the intent of selling something that was relatively common and popular among consumers, but with a specialty design and appealing look that customers couldn’t find elsewhere.
Their products are sourced from a single factory, and everything they sell is manufactured specifically for them. Their fabric storage bins are created using different styles and designs, and the company continues to develop new products consistently, so that today their SKUs have grown to a hefty 165 products. Their entire selection is available on [ external link ], helping corner their market.
At an Average Order Value of $35.70, sales have been exceptionally strong. Sales are diverse in that a single product doesn’t dominate their revenue stream. Their top seller is a woven storage box, but it represents just 9% of gross revenue. Their second biggest sellers, a foldable storage bin and storage basket bins, each represent 5% of overall sales, so the company benefits from having revenue drawn from a wide cross section of their many SKUs.
The customer base is strong and growing. Since capturing their target audience, sales have remained healthy throughout the year with no obvious seasonality, although in contrast to many companies that rely on a big jump in revenue over the holidays, their practical products enjoy moderate sales increases from January to March — typically the time when people make New Year’s resolutions to reduce their home clutter and seek out solutions such as storage bins.
Sales Are Strong with Minimal Ad Spend. One of the biggest advantages to selling on Amazon is the platform is highly effective at promoting products on its website once the seller invests in PPC ads. The brand has relied on Amazon’s in-house marketing programs, and this has turned out to be a very successful marketing plan.
Disclaimer: DealStream has not independently verified any of the information in this listing and makes no warranty as to its accuracy or completeness. This listing does not constitute an offer to sell, solicit or make an offer to buy an investment interest. Offers to sell, or the solicitation of offers to buy, any security can only be made through official offering documents, such as a subscription agreement and private placement memorandum.