For sale is a Canadian based home improvement Amazon business with 6 years of history. The target market is contractors and homeowners who like to take on small projects on their own. The success of the business relies on the product offering that targets the homeowners that need a replacement part for their household without having to hire a professional, like a plumber or carpenter.
The home improvement niche was a no brainer since it was the main background of one of the owners who had worked with plumbing products in the past. Having this background made it easy to create very good relationships with the major suppliers, who are all local so the lead time for inventory is very small. Ordering from suppliers is also pretty straight forward and because of the fast delivery, the operating capital to run the business is very low. The suppliers have huge offering of products that can be easily launched and added to existing products on Amazon.
Highlights & Key Assets:
o History - started in 2014
o Home improvement niche should be strong even during bad economic times
o 20 total products, 10-12 are driving the bulk of sales
o Revenue - relatively consistent month to month
o Brand - unique brand with trademark and brand registered with Amazon
o Home improvement geared to plumbing, and small renovations – no seasonality
o Fast inventory turn – 2-3 weeks in Amazon
o Domestic suppliers: delivery within 2 weeks
o No terms - Pay with Credit Card – Use the float of the CC. 1% cash-back
o Strength – Sourcing/Purchasing – Buying products
o Products ranked generally 4.5 stars with the vast majority being naturally organic reviews
o Possibility of adding numerous products as Private Label from present domestic suppliers
o Very low maintenance: around 6-8 hours/week
o Projected growth for this year: 15-20%. COVID 19 slowed down the growth in the 1st quarter and the following month due to restrictions imposed by Amazon and delays of processing orders due to skeleton crew working
Full support and training will be provided. This is negotiable depending on your needs.
Owner has been in this niche for decades offline and is looking for a change. They are moving into focusing on wholesale opportunities in the pet supply market.