8-Year-Old Category-Leading Sleepwear and Socks FBA Business
Business Description
Launched in 2017, this business comprises two of the leading brands on Amazon in the Sleepwear and Sock categories, which together have generated $8M in revenue over the last 12 months.
Originally started by a clothing merchandiser and acquired by an aggregator in 2021, the business has doubled in size in the last three years thanks to intelligent PPC, selective product expansion, and leveraging its unique competitive advantage of sourcing inventory cheaper through wholesale buys.
As a result, the brands have now become powerhouses in their respective categories with a huge amount of reviews (40,000+), 4.5–4.7-star ratings on their best-selling products, and an enviable foothold on consistently popular, evergreen pajama and sock SKUs.
In terms of growth, this year the owners are aiming for $9M in revenue and $1.2M in SDE, mainly leveraging the huge demand they have for their top SKUs, which regularly require restocking. There are also new products already developed and ready for launch that iterate on market-leading SKUs. Regarding tariffs, suppliers have been pivoted to lower-tariff zones while the owners are also benefiting from better credit terms and delivery duty paid (DDP) to offset the potential increases.
For a new owner, the business comes with a fully autonomous team already in place giving a buyer significant time and resources for future growth.
Key Benefits:
Hands-Off Ownership: The business runs itself with a full-time (FT) brand manager, two FT virtual assistants, and a merchandiser. The owner works 1 hr/wk. The team transfers with the sale, giving the new owner time and resources for growth.
Competitive Advantage: The business has strong relationships with the top US retailers that purchase annually in significant volumes, allowing the owners to piggyback on purchase orders and achieve much lower cost terms on Amazon stock.
Product Diversification: The brands are split across three main product lines, none of which makes up more than 35% of the total, giving the business a nicely diverse revenue profile.
Originally started by a clothing merchandiser and acquired by an aggregator in 2021, the business has doubled in size in the last three years thanks to intelligent PPC, selective product expansion, and leveraging its unique competitive advantage of sourcing inventory cheaper through wholesale buys.
As a result, the brands have now become powerhouses in their respective categories with a huge amount of reviews (40,000+), 4.5–4.7-star ratings on their best-selling products, and an enviable foothold on consistently popular, evergreen pajama and sock SKUs.
In terms of growth, this year the owners are aiming for $9M in revenue and $1.2M in SDE, mainly leveraging the huge demand they have for their top SKUs, which regularly require restocking. There are also new products already developed and ready for launch that iterate on market-leading SKUs. Regarding tariffs, suppliers have been pivoted to lower-tariff zones while the owners are also benefiting from better credit terms and delivery duty paid (DDP) to offset the potential increases.
For a new owner, the business comes with a fully autonomous team already in place giving a buyer significant time and resources for future growth.
Key Benefits:
Hands-Off Ownership: The business runs itself with a full-time (FT) brand manager, two FT virtual assistants, and a merchandiser. The owner works 1 hr/wk. The team transfers with the sale, giving the new owner time and resources for growth.
Competitive Advantage: The business has strong relationships with the top US retailers that purchase annually in significant volumes, allowing the owners to piggyback on purchase orders and achieve much lower cost terms on Amazon stock.
Product Diversification: The brands are split across three main product lines, none of which makes up more than 35% of the total, giving the business a nicely diverse revenue profile.
About the Business
- Years in Operation
- 8
- Currently Relocatable
- Yes
- Currently Home Based
- Yes
- Market Outlook / Competition
- Strong Category: Keyword and purchasing volumes for the business's major products have been increasing consistently YoY as more consumers go online for the convenience of purchasing essential, day-to-day apparel like socks and pajamas.
- Opportunities for Growth
- Restocking Growth: The owners have consistently experienced that simply purchasing additional inventory on their best-sellers, which routinely sell out in Q4, could add 20%–30% growth to the business.
About the Sale
- Seller Motivation
- The owner wants to invest in a new venture.
- Transition Support
- The owner can provide six months of transition support.
Listing Info
- ID
- 2363977
- Listing Views
- 2870
Listing ID: 2363977 The information on this listing has been provided by either the seller or a business broker representing the seller. BizQuest has no interest or stake in the sale of this business and has not verified any of the information and assumes no responsibility for its accuracy, veracity, or completeness. See our full Terms of Use. Learn how to avoid scams.
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