SBA Pre-Qualified: Amazon FBA Athletic Wear Business

Created in 2017, this business, operating primarily on Amazon's platform, has carved out a successful niche in the Athletic Apparel Ecommerce space. The company offers high-quality, low-cost basic athletic wear, including classic designs like plain t-shirts and simple polo shirts. This strategic positioning allows the company to compete effectively without directly challenging major brands' premium offerings while catering to a diverse customer base seeking timeless, essential sportswear.

This business presents buyers with an opportunity for immediate profitability enhancement coupled with a product line that has long-term market resilience. The company is implementing a strategic repackaging initiative, set to commence by the end of Q4 2024, that's projected to yield annual savings of ~$670K and create over ~$2M in immediate value for the new owner. This financial boost, combined with the company's focus on evergreen athletic wear, aligns with growing consumer trends towards capsule wardrobes and sustainable fashion and positions the company for investment in sustained growth. Growth opportunities include creating a Shopify store for the main brand,reviving previously successful styles on Amazon, and updating Amazon listings to A+ Content.

The company's mass appeal and market acceptance are evidenced by its significantly lower return rate of 13.5%–14.25% compared to the industry average of 20.8% for online apparel purchases (National Retail Federation, 2023). This lower return rate indicates strong product satisfaction and contributes to improved operational efficiency and profitability for the buyer. Additionally, the company is part of a dual-brand strategy that includes a second brand (~5% of TTM revenue) in the Pet Products market, offering diversification and multiple avenues for expansion under new ownership.

The owner is turning 60 and is ready to retire and travel with his wife, but he is excited to transition the business to a new owner.

Key Benefits:

Immediate Profitability Boost: A strategic repackaging initiative is projected to save ~$670K annually and create over $2M in immediate value (specific calculations located in the Client Interview).

Strong Amazon Presence: The brand has 99% positive seller feedback and 56K reviews averaging over 4.3 stars for the top five SKUs.

Low Return Rate: The company enjoys a 13.5%–14.25% return rate, significantly below the 20.8% industry average (NRF, 2023).

Top Amazon Rankings: Multiple products consistently rank in the top 20 of their categories, with the Women's Golf Polo typically holding the #1 Best Seller position in Women's Activewear Polos.

Dual-Brand Strategy: The athletic wear brand accounts for 88% of revenue, with the second brand providing diversification.

Efficient Operations: The business runs with just three full-time and two part-time employees.