Scaling Amazon FBA eCommerce Brand in the Mattress Vertical – 88% YOY Growth Rate – #1 Product in Multiple Subcategories – 2 Patents in Place

ValleyBiggs® presents an Amazon FBA eCommerce Brand that has become an enterprise-level business through their high-quality, highly rated air mattresses sold entirely on the Amazon.com platform. Their ownership of 2 key patents for air mattress products, with one being for a pump mechanism, and the other being for the mattress assembly has decreased the number of competitors on Amazon and kept their ranking in the top 10 for a year. They own a fully assignable and perpetual license for a globally recognized brand name, which has afforded them unique protections from rivals in their market and placed them in a solid position as a leader in the mattress market.

The patents they have in place have created solid defensive moats to allow them to dominate the Amazon space for several product categories, especially premium air mattresses, and this can be seen in the massive growth they are achieving. With 2022 at $2M in Profit and the TTM (June 2023) already at $5.5M, that growth rate is unheard of in most eCommerce sectors.

The owners are currently launching new products within the air mattress line and will launch internationally in 2023. This is a truly rare brand where new ownership has the control and rank to begin the development of new products and sales channels right out of the gate.

Products & Patents

The products sold by this company now have a reputation for quality and longevity. Thousands of verified Product Reviews on Amazon rave about the quality of these products and how they’re perfect for not just guests coming for a visit but for people in need of comfortable sleeping arrangements in general. Some reviewers mention how helpful they are for back pain and other spinal problems, with their ease of use and transport placing the products well above other competitive brands.

The products have a combined Average Order Value of $140.00, 4.9 Stars, and consistently earn the enviable title of No. 1 bestseller in multiple categories. The success of their products has been so strong, in fact, that they have enjoyed an 88% YOY Revenue Growth Rate.

The products are manufactured by one of the current owners behind the brand, who owns a large manufacturing operation that specializes in inflatable products. An ideal buyer would want to retain a long-term relationship with the manufacturer, would receive the same pricing as the brand currently has, and would be able to license the patents in perpetuity with no royalty fees. This provides the buyer with a trustworthy supplier of their products for the foreseeable future, taking some of the stress of building up a network of manufacturers from the buyer’s shoulders.

The patents have proven to be valuable throughout the company’s growth, as many, potentially the majority, of competition of Air Mattress brands on Amazon infringe on their patents. This creates the opportunity to remove certain competitors on Amazon and in other marketplaces, further strengthening the Brand’s dominant position as the market leader.

Scale Opportunities

The brand is brimming with opportunities for growth. They launched their current products internationally in Q3 2023 which is already having tremendous success. They are now working on launching more products in their catalog including a children’s series, a camping series, and additional home items.

Other options for growth include:

• DTC, using Shopify. Paid advertising would be used to draw attention to this new store and the products available there.
• Launching sales on Walmart.com, Overstock.com, Wayfair.com
• Retail box store deals
• Amazon’s international expansion to UK and EU

These strategies would diversify the revenue that the company generates, making their products more accessible not just to Amazon, but the internet as well. International expansion is also highly promising, as they currently sell only in the US and Canada

Human Resources

Each of the 2 current owners spends less than 10 hours per week managing the business. The more operations-focused owner is responsible for handling Selling Central management, delegating tasks to VAs, and performing market research on competitors. The other owner, meanwhile, is more focused on manufacturing and logistics and spends time working with his factories on quality and coordinating logistics.

The current owners are willing to remain on board to assist with managing the brand ensuring a seamless transition. They remain highly bullish on the brand and the opportunity for growth, especially if they find a buyer with the skills and capital to help it grow faster.

Alongside the owners, the company is run with the help of a fully trained team of virtual assistants in India. These VAs can transfer with the company, or the buyer could utilize the services of the VA company that the owner operates, at cost, to manage the brand.

Summary

This acquisition offers a buyer the opportunity to purchase some highly valuable real estate – not just access to highly valuable patents for these products, but also the Best Seller Rank and overall placement in various categories on the Amazon platform, the largest eCommerce Retailer in the country.

They are a titan of the air mattress industry with the profits to show for it and are steadily on the rise with each passing day. With the current owners willing to help the buyer manage the brand, a golden reputation on the Amazon platform, and products that customers dream about when seeking quality mattresses, the brand is a perfect pick for a seasoned buyer.