Description

One of the more popular and growing forms of exercise today is the triathlon. Statistics show that there were approx. 4.24 million participants in triathlons in the US in 2015, up from 3.61 million the previous year (Statista). The current owners, being avid triathlon trainers, saw the potential of this huge niche. Having bought equipment and supplies for their own needs and through networking with other triathletes, they recognized this market was underserved, in particular, on the Amazon platform. By analyzing the various channels available to sell products through Amazon (Vendor Central, Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM)), and by understanding the relative strengths and weaknesses of each, the owners methodically built a system to optimize sales. As a result of their proven method, the company has been able to leverage the giant Amazon marketplace to sell products from various product lines while earning strong returns.

Though the business began by offering products solely in the sports and fitness industry, as the owners developed various key vendor relationships, they gained access to other product opportunities at deals that made it viable to branch out to other industries. The company currently has access to 30,000+ products within industries from Sports, Fitness and Spa to Home, Beauty and Lawn & Garden.

96% of the business volume is fulfilled via Amazon (Vendor Central or Amazon FBA) with an additional 2-4% In-Stock. The current inventory value for the items on hand is approx. $194,000 with the average value in the last 12 months of about $160,000. While the majority of sales are generated through the Amazon channels, there exists a great opportunity to grow the business further via continued development of the business’ own websites.

Currently, the business is successfully operated by two owners. One owner works approx. 40 hours per week managing the company’s employee, inventory, warehousing, vendors and handling customer service. The other owner spends approx. 20 hours per week handling accounting, identifying new brands and managing the ecommerce catalogs. In addition, there is one employee who works full-time managing inventory and warehousing.

With 96 million unique US visitors per month, the business benefits from natural Amazon customer flow for its products and from Amazon’s huge marketing ability. Combined with the owners’ method of optimizing sales through the various Amazon channels, they have created a winning formula and successful online business. The business is perfectly positioned to be taken to its next level of growth expanding on Amazon, other channels and through further development of its own websites.

Posted Jan 10, 2017

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