ø Monthly Revenue: 158.429,- EUR
ø Monthly Expenses: 105.984,- EUR
ø Monthly Net Profit: 52.445,- EUR
ø Margin: 32,13%
Established: Q1 2014
Price: 1,600,000 EUR
Inventory not included
For sale is an internationally-established brand with an annual turnover of around 2,000,000.00 EUR and a gross margin of around 630,000.00 EUR p.a. in the last 12 months.
The brand was registered at the beginning of 2014 and is currently selling 190 Parent ASINs in the Home Decor sector. Some of the products were developed exclusively by a designer as well. With optimized processes, short transport routes and production in Germany, the margins after all the cost deductions are at a constant 30-40%.
Individual product components are pre-packaged in the seller’s warehouse and the rest is fulfilled by the Amazon warehouse. The packaging for many of the products is optimized so that the standard size is maintained and Amazon fees are saved as a result.
While most of the competition is limited to the German marketplace, this brand was registered as an EU trademark from the very beginning and uses Amazon’s PAN-EU program to sell in all European marketplaces. The distribution of European sales is as follows:
- Total sales: €1,323,147.52
- Germany: approx. 44%
- Spain: approx. 18%
- France: approx. 16%
- Italy: approx. 13%
- UK: approx. 12%
The JTL merchandise management system has been in place for several months now and sales have been expanded to eBay. Recently, a monthly turnover of approximately €3,000.00 was achieved. The seller plans to add more eBay marketplaces and to list more products by the end of the year.
The brand has also been registered in the USA since 2016 and the products are sold in the USA and Canada, where “Made in Germany” is a special quality feature. Around 32% of the total turnover is achieved in North America.
Automatic pay-per-click campaigns were carried out on Amazon. Their ACoS averaged 10-30%, depending on the country. However, the managing of ad campaigns was always very tedious for the seller due to the number of products. In June 2018, he began working with an agency that automates and maintains all pay-per-click measures.
Suppliers and logistics
Currently, two suppliers are being used, one of which has been working with the seller since 2011. Both suppliers are based in Germany. The products are manufactured using a specific process, which makes purchasing more than 500 pieces per product very cost effective. Product control, inspection, delivery and packaging on pallets are included in the prices.
Sales History – Europe
|June 2017||101.352,25 €||3.776||81.788,13 €||19,30%||19.564,12 €|
|July 2017||106.750,33 €||4.231||80.313,33 €||24,77%||26.437,00 €|
|August 2017||99.876,35 €||4.152||71.985,81 €||27,93%||27.890,54 €|
|September 2017||99.650,92 €||4.192||74.899,31 €||24,84%||24.751,61 €|
|October 2017||108.439,34 €||4.193||75.955,29 €||29,96%||32.484,05 €|
|November 2017||148.783,68 €||5.400||109.831,63 €||26,18%||38.952,05 €|
|December 2017||196.589,30 €||7.330||142.939,31 €||27,29%||53.649,99 €|
|January 2018||156.159,83 €||5.607||122.222,94 €||21,73%||33.936,89 €|
|February 2018||84.989,26 €||3.117||53.875,77 €||36,61%||31.113,49 €|
|March 2018||91.162,73 €||3.268||54.291,60 €||40,45%||36.871,13 €|
|April 2018||62.107,38 €||2.183||38.346,01 €||38,26%||23.761,37 €|
|May 2018||67.286,15 €||2.606||46.219,13 €||31,31%||21.067,02 €|
|June 2018||67.585,46 €||2.628||47447,76 €||29,80%||20.137,70 €|
Sales History – USA
For each product, high-quality and professional photos are taken by an outside agency. There is a close collaboration with the agency that can be continued after the sale of the company. The seller is supported with further processing by two other agencies as well. An agency specializing in e-commerce provides intensive support and their responsibilities have been increased in recent months. The following tasks are performed by them:
- General communication with Amazon departments
- Account Management
- Escalation Management with Amazon
- Product re-activation in case of problems
- Assistance with blocked or suspended accounts (Germany and International)
- Removal of seller ratings on all marketplaces
- Competition Analysis
- Campaign Management
- FBA Refund and Monitoring
- Item cost controls
- Creating movement lists and outgoing invoices
- eBay Campaigns
At the moment, the agency costs €600.00 per month. Since their role will expand, their costs will increase to approximately €1,000.00 in July 2018. There is also a small team of virtual assistants covering all languages. They take over product maintenance, which includes enhanced brand content, inserting images and correcting minor defects. The seller plans to delegate further tasks to the team in the future, such as customer support, review management, keyword optimization and product maintenance. The virtual assistants cost approximately €500-€1,500.00 per month.
Included in the purchase
- Domain with an automatic redirection to the Amazon Shop
- Facebook account with around 7,000 organic likes and followers
- Instagram account with approximately 1,000 followers
- Rights for the individual designs
- Professional pictures of the individual products
- Descriptions are available in all languages for most products: German, English, Spanish, French and Italian.
- Extensive expansion of the product range. (The seller can pass along many more product ideas to the buyer.)
- Market expansion to Japan and Mexico (“Made in Germany” is very popular there.)
- Sales in retail or DIY stores
- Increased use of pay-per-click and headline search ads.
- Use of the Amazon Storefront
- Increased social media marketing
Reason for sale
The seller always knew that a sale would have to come at some point. He is a person who needs freedom, who loves traveling and who likes to try out new ideas.
Managing employees and agencies is not what he can see himself doing in the long term. He sees his strengths elsewhere. With a sale, he can concentrate on new ideas and projects. He is also about to become a father and wants to spend a lot of time with his child.
The seller is willing to support the buyer during the first 1 to 3 months
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