Back to Listings Growing Baby Accessory Brand

Asking Price : $295,000

Annual Gross Revenue : $393,581

Annual Net Profit : $172,433

Profit Multiple : x1.71

Inventory Value: -

R-Index : 200

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From the Broker

Executive Summary

Launched in 2015, this branded line of popular baby products and accessories presents a rare opportunity on the market. Since its inception, the company has diversified its product offerings and experienced a substantial increase in sales. The business sells eight products in the baby car accessory niche, and most of the products have excellent position in Amazon’s Best Selling ranks.

While every seller has his or her reasons for selling, the current owner would like to focus on his other business full-time. The sale includes the business domain, a 2+ year old Amazon Seller account, a trademarked brand, all social media accounts, supplier relationships, and current inventory.

The business itself is simple to operate and the owner spends five hours a week managing operations. Revenue is up 13% YTD, and zero social media advertising or outside advertising has been used to drive traffic to Amazon. The business’ growth is the result of its strong brand and high-quality products. The business is even qualified for working capital financing from Amazon Lending.

If you are looking to take over an established dropship e-commerce business with hands-off operations and significant growth opportunities, this business is the perfect fit.

Business Model

The business derives 100% of its revenue from product sales on Amazon, and the customer base is primarily located in Europe. Over the trailing twelve months, the gross revenue was approximately $375,000.00 and net profit was $150,000.00. Of this revenue, 50% was generated in the UK, 42% was generated in the EU and 8% was generated in the US.

The business uses a dropship model and the products are shipped directly from the manufacturers to Amazon. The same supplier has been used since the business launched, and the owner has identified back up suppliers as well. All relationships will transition to the new owner.

Because this business has always been a secondary source of income, the owner only spends 5 hours a week managing the business. This time is primarily spent responding to customer inquiries, managing inventory, and expanding the product range. The business does not have any employees.

Growth Opportunities

There are several potentially lucrative growth strategies a new owner could pursue. Given the strength of the brand, a new owner could leverage the success and expand the current product range. The seller has a product expansion roadmap that will be made available to the new owner.

A new owner could also create a web store to sell and promote the product range. Currently, the products can only be purchased via Amazon. Enhancing the current website and migrating to a platform like Shopify would allow for content marketing and help diversify the revenue sources. Similarly, the new owner could also expand to other ecommerce platforms. By selling the current products on platforms like eBay, Walmart, or Zulily the business could increase its sales and revenue significantly.

Lastly, a new owner could utilize social media more effectively. While the business has Facebook and Twitter accounts, they are not used very frequently. The new owner could social media to advertise the products, drive traffic, and publish content. Google Adwords and Google Shopping could be used to grow sales as well.

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Sale Pending: No

First Seen: Thu, Nov 2nd 2017

Last Updated: Mon, May 14th 2018

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