Launched in 2017, this Amazon FBA business has become one of the category leaders in the sale of sleepwear and socks, generating sales of $4.2m for TTM with an expected $5.0m for 2020.
Selling through two popular brands, the business' major products are in thermal and outdoor socks as well as pajamas and nightwear for children.
The product catalog in total spans 70 parent SKUs - 440 including size/colour variants - with nearly 5,000 ratings for its top SKUs and an average 4.5-4.7 star rating.
The business enjoys a relatively unique advantage over competitors thanks to its wholesale channel (28% of total revenue) which sells the products directly to major US retailers and provides significant purchasing power with manufacturers and thus discount cost for Amazon. The owner also benefits from understanding the major new product demands of large retailers and can then bring these to Amazon with its own design team.
The owner oversees a team of 3 that help coordinate logistics, ordering, bookkeeping, and managing wholesale customers. There is an in-house freelance design team for new products as well as fully outsourced Amazon account management for PPC and a 3PL for storage.
Important to note, the business is very seasonal with 60-70% of revenue occurring in Q4, a significant amount of which comes from pre-booked wholesale orders. Inventory levels are typically <$200K through the year, but grow to $700K at the seasonal high.
In the years ahead, there are a number of significant growth opportunities available including expanding into new footwear opportunities (identified by the owner already), growing the sleepwear range, and most recently expanding off of Amazon where the business now has a fully-functioning website ready to begin taking orders.
The reason for the sale is that the owner is in his sixties and is aiming to retire within the next 2 years.