BUSINESS DESCRIPTION
For sale is a successful distributor of a high quality and highly desired product that is always in demand. The company has been in business since November 2013 with very high review ratings and a high volume of daily sales (400/day).
The company has recently entered into a direct wholesale agreement with Amazon serving a very broad market supporting men and women who suffer from a problem they would pay anything to fix, those who travel, or do shift-work.
NOTE - Financial numbers are Annualized based on run rates over the past quarter. The business is on a high growth trajectory with $1.49mm and $999K in profit over the last 4 months.
Highlights:
- #1 Best seller on Amazon.com:
- High volume of sales each day; approximately 400 units per day as of May 8 2015.
- Extremely high quality product, which is reflected in the product reviews on Amazon.com, with an average of 4.5 stars out of 5, and a total of over 2250 reviews. (Highest number of reviews on Amazon.com for this niche)
- Extremely reliable and proficient supplier
- Amazon.com has recently entered in to a wholesale contract, where they purchase each item directly. They placed their first order of 12,200 units, which is expected to last them less than a month, and the expectation for significantly larger volume in the future. This is a huge benefit for the business ongoing and makes this more of a B2B wholesale type of business.
- Utilizes Amazon FBA warehouse system, allowing seamless freight options. FBA allows for complete hands-off due to their facility taking care of shipping, customer orders, receiving and managing stock in their warehouse, as well distributing this across their entire warehouse system located around USA, which ensures that they customers will receive their products quickly as the stock is as close as possible to the customer location.
- Currently expanding to offer new variations of the product, including color and materials to serve a wider range of the market.
- Name/Brand is a registered trademark with the USPTO.
- Patented product - patent owned by the manufacturer.
- Product is sold on multiple Amazon platforms, including USA, UK, Europe. Expansion is currently taking place in to Canada and Japan.
- Amazon Japan have stated that they will run lightening deals to ensure solid sales in Japan.
- Seller runs a monthly competition by utilizing an insert card in the packaging that drives customers from Amazon over to their website to leave their name and email in exchange for a chance to win a $200 Amazon gift card each month.
- Currently they have approximately 800 emails from highly targeted customers.
Expansion Potential
This business is already on a fast growth track. The owners see huge growth potential with this business and are implementing strategies to grow by expanding. Part of this expansion is offering more variations of the product design in terms of color and material.
There is also the option to move in to other lucrative markets in this niche including supplements, and completely new designs of the current product.
Additionally, there is potential to grow all of these variations and new products in the UK, and Japan and still utilize the FBA system. The potential to get the product brand name into physical stores is available.
The owners have also been approached by Groupon and 'The Wellness Channel' recently who want to work with them and discuss promotion.
The profit per unit can increase dramatically if sea-freight is used, currently only air freight is used.
Additionally there is the opportunity to wholesale the product (owners get contacted on a regular basis from prospective wholesalers.)