Home Bedding eCommerce Brand – #1 Best Seller of Bedding Products on Amazon – $140 AOV – 100% YOY Growth – 100% Amazon FBA
ValleyBiggs® presents a middle market company in the Home Bedding Vertical. There are various product offerings in place to meet all user preferences, but it has historically been positioned as a Luxury offering. In addition, a recently launched version of the product is offered at a lower price point to capture the mid to low market.
There are two owners of this company. One handles the manufacturing piece of the business and is a prolific inventor with over 25 active patents. Throughout his career, he has focused on creating high-quality and in-demand products for large retailers such as Toys “R” Us, Target, and Walmart. He currently has 3,500 employees in China and Cambodia.
The other owner is a serial entrepreneur and the strategic operator of the business. He started his eCommerce career in 2007 as the head of sales at a multichannel eCommerce software firm. He quickly decided to start his own company taking large-scale manufacturers directly to Amazon. From there, he launched his own Amazon brands and hired multiple virtual assistants to run them. After so much success developing and training VAs, he started a virtual assistant company that today services high-profile eCommerce brands worldwide.
The two met in 2015 and quickly realized that their skills and interests complemented each other. They launched this business on Amazon in 2017 and became a top 100 Amazon seller worldwide within the first 12 months. Together, they manage 19 companies and have never raised capital.
Products for this brand are made in China and Cambodia. Orders are placed every 3 to 4 months; payment terms are 30 days after shipment. The business makes use of a 100% stock inventory model. Full containers are shipped directly to Amazon facilities, and they distribute and fulfill orders. The company also utilizes a 3PL for filler stock to feed the Amazon DCs when stateside stock is lower. All products are sold FBA / Prime.
Furthermore, management works with Amazon Global Logistics for much of its shipping as it is often quicker and less expensive. The retail giant works with the company to coordinate containers being shipped directly from China to their warehouses in the US.
Currently, sales are exclusively on the Amazon platform, and favorable supplier terms and insatiable customer demand provide the business with excellent cash flow. Typically, 7 to 8 million dollars of inventory is kept on hand, which ensures products are always in stock and supports the current growth rate.
The company is not seasonal. However, like many eCommerce businesses, Q4 is the busiest with holiday spending and consumers needing to buy bedding for family visits. There is also a peak in Summer because of a surge in camping trips.
Both owners spend less than 10 hours per week each on this business.
One focuses on operations and architects Seller Central, delegates tasks to VAs, and performs market research on competitors. The other spends time working with his factories on quality and coordinating logistics.
A fully trained team of virtual assistants in India runs daily operations and can be transferred to a buyer. Alternatively, a buyer can utilize the services of the VA company, at cost, that the existing owner owns and operates.
The business is thriving, and management has no intention of slowing down. Contrarily, they have developed a roadmap to scale the business dramatically.
Firstly, in addition to the “premium” line, the company is launching a new product line in the bedding category to compete with some of the lower-cost options on Amazon. Products will immediately rank on Amazon by using reviews from current listings.
Secondly, international expansion on the platform to the UK and Canada will be implemented.
The brand’s unique situation perfectly positions it to take market share from other bedding brands competing in these markets.
The owners are interested in staying on in some capacity with a buyer. They plan on acquiring assets with the buyer, such as distressed Amazon brands, and putting them through vigorous programming to make them the top-selling products in their categories—just as they have done with this company and multiple other Amazon brands.
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