Business Overview
About the Company
This is a 10-year-old FBA enterprise that began selling on Amazon in late 2014. The owner has built a true category brand leader that only time, attention to detail, and success can create. They've accumulated 78,000 positive reviews across 96 SKUs, 40,000 of which are for their top SKU. They've earned the Best Seller Badge in Grocery for their main product and multiple sub-300 BSRs (Best Sellers Rank), all while offering their products at competitive prices (and even increasing prices in 2023). Over time, their listings reached the top of Amazon organic rankings in their category, and sales increased rapidly as a result. Even recently, the trailing six months have experienced YoY revenue and SDE growth of 9% and 14% respectively.
The company operates out of a fully equipped, 58,000 square foot leased facility in the Northeast, where their team of ~25 employees assembles variety snack boxes and gift baskets under their private-label, trademarked brand, which they sell on Amazon, Shopify, and Walmart (representing 94.5%, 5%, and 0.5% of revenue, respectively). All logistics are performed in-house between a day shift and night shift, and operations are very lean and closely monitored by management for speed, accuracy, attendance, and quality. They receive pallet shipments from their US-based suppliers; store and pull these pallets from racking in the warehouse; assemble their snack boxes and gift baskets; label, pack, palletize and ship the cases out (usually via full truck load) to a nearby Amazon fulfillment center.
Though the company has gained a large chunk of market share for their category, growth opportunities are apparent, including 1) creating more holiday-themed and year-round ASINs (with not much competition for quality holiday-themed snack and candy gift products, the seller believes a major gap exists in the market, and a new owner can likely generate an additional $2M in annual revenue each year that this strategy is employed), 2) performing social media and PPC marketing off Amazon (especially for the holiday-themed products), 3) driving more traffic to Shopify, and 4) joining new marketplaces.
The owner currently spends ~40 hours per week managing the business remotely but does visit the warehouse a couple of times per month for 4 hours per visit. The owner has been going full steam ahead for a decade and is ready to pull his chips off the table and reinvest the proceeds of the sale into commercial real estate.
Key Benefits
Quality Control: All logistics are performed in-house from a 58,000 sf facility, with 25 well-trained employees performing highly monitored, streamlined tasks to promote efficiency and accuracy.
Barriers to Entry: These include a trained team of 25 employees, in-house logistics, a high BSR of 300 and lower in the Grocery category, over 78,000 reviews, trademarked brands, and Brand Registry.
Account Health Assurance: This status provides protection from auto seller account deactivation.
CRS Account: When contacting seller support, you reach a member from CRS (Contact Resolution Specialists) instead of generic seller support. CRS is a specialized team for high-volume sellers and consists of mostly American support reps who are knowledgeable and helpful.
Long-Established: The business/product was launched 10 years ago on Amazon (December 2014).
Growth Opportunities: These include 1) creating more holiday-themed and year-round ASINs, 2) performing social media and PPC marketing off Amazon, and 3) driving more traffic to Shopify, to name a few.
Reviews: The brand has 78,000 reviews at a 4.5/5 average rating, with the main ASIN having earned ~40,000 reviews.
