In the October Amazon Aggregator survey, PNW Web Marketing reviewed Perch’s known brands and
current estimated revenues of known brands. Apollo Capital (the owner of Perch) announced in
September they are looking for a buyer. This is notable because of the size of Perch (900M+) and
because its prominent investors.
Perch has publicly listed on their website the following brands:
Cali White
Cali White sells several teeth whitening products in the US Amazon marketplace and they have a decent-sized following. Enough that their products are resold on the Walmart marketplace by various arbitrage
sellers.
Cali White has an estimated $58,000 of monthly revenue but on low ASP mix of products. Estimating
their margin at 10% they are making $5,800 monthly profit. Annually they generate around
$700,000 of revenue on Amazon US and if they have a margin of 10% they are taking $70,000 per year
profit. Cali White doesn’t appear to directly sell its products on Amazon CA, UK or Walmart.
Satina
Satina is a popular legging brand for women, and they have wider distribution selling on Amazon US, CA
and Walmart Marketplace. They are being arbitraged to other marketplaces, such as Amazon UK.
Satina has an estimated $635,000 in revenue across Amazon marketplaces per month, and if we assume
a 20% margin they are making about ~$126,000 of profit per month. Annually this is about $7,535,000
revenue with a 20% margin they would be doing 1.5M profit per year.
Magic Sleep Suit
Baby Merlin’s Magic Sleep Suit sells infant sleepsuits and sacks. They have quite a few popular variations
and across them they are selling 18,000 infant sleep suits a month. There is a significant barrier of entry
to baby products, and pricing, particularly on sleep items, is high to protect families. This allows the Magic
Sleep Suit to also have high ASP, revenue, and likely profit.
They do about 700K of revenue on the 18,000 sleepsuits with an ASP of $39 – much better than their
other brands. Assuming they have a 40% net profit, they would make about 280,000 net profit a month.Annually, this is a 3.4M profit on 8.4M of revenue.
Pretex
Prextex sells decorations and kids’ toys. It’s also one of the brands that Perch lists on Amazon.ca. Their
best seller currently is a toddler remote control car. In the US they are doing about 800K a month on a
little over 31k units, making their ASAP 25. Normally I would say it’s a lower profit but in this case the products are so incredibly cheap I think it makes sense to assume a 40% margin.
More interesting in Canada, they have expanded strategically and command a higher ASP of $34.Total monthly revenue (CA+US) is 950K, rounding up to a cool 1M (12M annually) means this business is
doing about 400k of profit per month and annually 4.8M profit. Possibly one of the better acquisitions
that Perch has publicly disclosed.
Tame the Wild
Tame the Wild is a specialty beauty brand focused on beard care, and they currently have 5 children
ASINs listed – 3 of which are complete care kits. Their top-selling ASIN is their beard straightening kit, which does 300 units per month. Annually they are making about 468K with an estimated profit of 40% or 187K.
Tame the Wild is doing an estimated ~30K in sales on Amazon.com.
They do not have a DTC site and appear focused on the marketplace. The revenue estimate is for
Amazon.com is selling only on Walmart, for instance.
PreStee
Prestee sells disposable party ware like cups, plates, tablecloths, and utensils. They sell on Amazon CA
and US – annually across marketplaces sales are at 4.6M with an estimated margin of 30% or 1.3M.
Prestee has only a few parent ASINs but over a dozen children variations. In the US they are estimated to
be selling ~182K per month and when taken with amazon.ca they are doing about 202K per month.
ZapIt
Zap it – true to its brand, makes bug-zapping rackets you use to swat flies. They also have a line of
mosquito/bug zappers that don’t require you to swat at the bugs. They are listed in both US and CA
Amazon markets and do about 600K in revenue per month. The products have fairly high ASP given how
simple they are and a 40% margin was used to estimate profit. Annual estimated revenue for Zap It is
7.2M and and estimated 2.88M profit.
BootyWipes
BootyWipes are a flushable wipe product targeted both at men and women. Most notably, they follow other brands like DudeWipes and put a lot of branding behind their products. Estimated monthly revenue is 227K with an estimated margin of 30%. They are doing 2.7M revenue annually with
an estimated profit of 817K.
CareTouch
CareTouch is a small medical supplies company but a fair number of their SKUs are cleaning-related as
well (lens cleaners for example). They have an extremely low ASP on most SKUs but quite a lot of
revenue with volume. They are doing about 1M in revenue a month but its unlikely their margin is better
than 15%. Annually this is 12M with 1.8M profit.
Space Saver
Space Saver sells vacuum bags for storage and various kits for vacuum packing home goods. They
are in a competitive market but seem to sustain sales at a reasonable price. Estimated a 30%
margin for this company, they do about 377K monthly in revenue on Amazon. Annually this equates to
4.5M revenue and 1.35 profit.
Open Seed Vault
Open Seed Vault is the smallest of the Perch brands, with just 2 SKUs and an estimated annual revenue of
187K. With a 40% margin this brand would be profiting about 75K a year.
Summary: Total Revenue & Profit
For the 11 brands Perch lists on their site – it totals up to 60M in retail revenue with a good case scenario
of 18M in net. If Perch has private debt of any kind in the current interest rate market they could be
upside down even in the good case scenario.
While some of the brands are particular small – all of them are small. Only 2 of the 11 brands break the
traditional 10M mark – I would not personally want to acquire below this mark with VC money and an
particularly expected return as an operator.
