Our firm presents an eCommerce company that has nearly two decades of experience profiting off of one of the most-long held truisms of business: People just love a good bargain.
The brand, which operates two successful Shopify websites, enjoys phenomenal product diversity by offering SKUs in a variety of categories including Sports and Outdoors, Home and Garden, Health and Beauty, and Household Goods. These products range from pig roasters to inflatable bounce houses to fitness poles, all being sold under their own proprietary brand name with great success and gleaming reviews for quality and value.
All of their products are offered on Amazon and optimized for their Amazon FBA, Prime Model, making for a vast reach and recognition for super fast shipping. With a 98% Lifetime Seller Rating, the company has successfully determined who their target audience is and just as successfully delivered for them.
Pioneering an aggressive market research strategy, the company uses Helium 10, a software that enables them to analyze products they’re selling on Amazon to evaluate for seasonal trends and profit estimates. Having a strong understanding of what customers are looking for, they sell a lot of items that customers can’t find in their local big box stores, and they work hard to ensure their pricing is competitive to deliver what people want: Bargains. Surveys of shopping habits indicate that Americans love saving money on their purchases because it means they have more spare cash to – what else, but buy more products. Plenty of shoppers, particularly between the ages of 25 and 34, know when a sale is due to start at their favorite store and eagerly plan for it.
That was the company’s original goal when their site was launched 16 years ago to provide consumers with alternatives to local retail shopping. Their site has grown to more than 50 SKUs, allowing customers to shop for sporting goods, hardware, beauty products and more all from one retailer. In addition to the products they sell, their website has a prominent “Season Sale” for popular items that have been marked down.
A second website was launched marketing a foot bath and related accessories for customers interested in alternative and holistic health care products. Products are sourced from an international manufacturer, with a forwarder used to import their products, which are optimized, customized in terms of quality, size, and material, and packaged to fit the Fulfillment By Amazon requirements. With a growing number of SKUs, there’s a wide price range among these items, from $19 all the way up to $1,199. Sales remain steady throughout the year, with their foot bath, bounce houses, and pig roasters representing 70% of sales. In addition to Amazon, sales have been extended to other eCommerce platforms such as Walmart and eBay, although Amazon makes up 75% of sales, which are projected to surpass $2.4 million by the end of 2021. That represents a truly growth rate for this tried and tested business, indicating an incredible growth potential going forward.
The company gets a steady mix of both new and repeat customers, with their bounce houses appealing most commonly to new customers, and their foot bath accessories to repeat buyers. The company is now planning to increase their focus on the top performing SKUs that have become the most profitable for them.
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.