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Amazon has been a fantastic deflationary source for consumers, however it is also constantly squeezing seller margins.  Fees, as a percentage of Gross Selling Price, have increased every year since 2009. In 2009, Amazon fees totaled less than 20% of the gross selling price for most third-party sellers.  Now, nearly 10 years later, Amazon fees have risen to nearly 35%.  Since most third-party sellers are unable to increase prices to offset the majority of these fees, margins are constantly under pressure.

Sellers can combat some of the increasing Amazon fees by more effectively managing their inventory to reduce monthly and long-term storage.  Sellers can also redesign certain products to reduce weight and optimize shipping expenses.  However, sellers ultimately have no choice, but to accept the Amazon fee increases.  The margin squeeze has caused valuation multiples of Amazon only businesses to drop significantly over the last several years, especially sellers of staple white-label items.

Several years ago, sellers could offer white-label products, optimize their listings and enjoy year-over-year growth due to the increasing Amazon audience.  However, Amazon is directly capturing an ever-increasing share of white-label products (from batteries and charging cables, to bedding, luggage, and recently small appliances and apparel).  Amazon only had a minor share (or even zero share) of these markets a few years ago, but will control the vast majority of each within the next couple of years.

The speed of this transition is rarely talked about, but will make an amazing case-study in the future, as Amazon is capturing, virtually, entire category after category.  Differentiated, proprietary products were beneficial for third-party sellers in the past, but now they are an absolute must to thrive on the Amazon platform.

Previously many established third-party sellers profited significantly from Lightning Deals and Hot Deals in the past as Amazon did not charge for the promotions until the summer 2016.  The number of promotions was limited and only available to established sellers. However, in August 2016, Amazon changed its policy, opening the promotions to virtually all sellers and charging a fee per promotion.  The effectiveness of Lightning Deals and Hot Deals has dropped notably since due to considerable decreases in revenue achieved per deal, as well as the increase in the variety of products offered.

Prior to the policy change, it was not unusual for a promotion to achieve in excess of $5,000 in sales.  However, a study of 580 deals run in the 1st half of 2017, showed an average of less than $500 in sales per promotion.

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It is truly amazing how much we take for granted.  In January, I visited Guatemala with my wife, Emilia.  Guatemala, her home country is beautiful and the nature is amazing.  People often do not have a lot but, they are genuinely happy, appreciative, and creative.  Whenever she visits, she brings a couple of suitcases full of clothes and toys to distribute (always coming back with just a carry-on).  In January, we brought a few suitcases of clothes and toys.  We even filled a piñata with toys for kids.  The joy the kids showed when receiving the small toys was amazing, but the happiness we received watching them was priceless and unforgettable.

During the trip we met two boys who had made a creative banjo, simply by cutting a piece of wood, and wrapping guitar strings around a crush soda can.  Their creativity was impressive and inspiring.  We wanted to bring more toys and supplies to Guatemala, and thanks to SCS Direct Inc, we were recently able to accomplish this.  When I told the stories about Guatemala to Howard Greenspan at SCS, he asked if we wanted to go to SCS’s warehouse to go through product returns and take whatever we wanted.  We found toys, baby supplies, and all sorts of products that we packed onto a pallet.  Thanks to SCS’s generosity, there probably was about $10,000 in products.  We repacked all of the toys and other products into about a half dozen blue plastic containers and arranged for their shipment to Guatemala.  In October, Emilia went to Guatemala and distributed the toys and other items.  Everyone was extremely appreciative and everything will be used to its fullest.  Some of the teachers are even using the Hatch-em eggs as weekly prizes for kids who do well in school.

We were even able to get Ukuleles for the boys who made the creative banjo.

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Seventh Successful Transaction Sourced by Little White Dog inc for SCS Direct Inc in the Past Two and a Half Years

SCS Direct Inc. Increases Housewares Portfolio With the Purchase of Kuissential

Connecticut Company Acquires Specialty Kitchen and Coffee Housewares Brand

TRUMBULL, CT–(Marketwired – March 01, 2016) –  SCS Direct Inc., a consumer products company based in Trumbull, CT has recently announced the purchase of Miami-based, specialty housewares company Kuissential.

Established in 2011, Kuissential is known for offering high quality and innovative coffee products and kitchenware at a reasonable price. The brand’s unparalleled customer service, through direct, open dialogue with consumers continue to attract a loyal customer base.

In 2015, Kuissential created a successful Kickstarter campaign to raise funds for the production of a patented manual coffee grinder known as the EvenGrind 2.0. This new manual burr grinder is designed to yield a much more consistent coffee grind size at a fraction of the price of electric conical burr grinders. The Kuissential line also includes specialty kitchenware and coffee gadgets such as Milk Frothers, Coffee Drippers, French Presses, Juice Extractors and Bread Machines.

Howard Greenspan, President of SCS Direct Inc. stated, “I was attracted to the business because of its superior product line and how they perfectly complement our existing housewares portfolio. SCS Direct plans to further the brand’s mission of exemplary customer experience and integrate into the continuously evolving market of coffee consumers.”

Greenspan’s plans for Kuissential include furthering the functionality and enhancing the look of the EvenGrind 2.0 prior to its launch; upgrading product packaging of the entire line; enhancing brand awareness and offering this formerly “internet-only” product line to national retailers in order to expand to a mass consumer base.

The former owners of Kuisssential, Alex Cacciamani and Andres Fernandez commented on the sale:

“SCS Direct understands Kuissential’s vision and commitment to customer satisfaction. We feel they are the perfect team to grow the Kuissential brand to the next level,” said Alex Cacciamani.

Andres Fernandez added, “I’m very proud about what we were able to accomplish with Kuissential and grateful for all the help received along the way. While it was a difficult decision to move on to new projects, we know we found a perfect new home for Kuissential with SCS Direct.”

SCS Direct’s arsenal of housewares products are growing rapidly. In addition to Kuissential, the company owns several best-selling houseware brands such as Camerons Products, CucinaPro, Good Cooking, D’Eco, Fasta Pasta and Simple Cups.

The Kuissential transaction was sourced and negotiated by Little White Dog Inc. based in Norwalk, CT. Kuissential is SCS Direct’s seventh successful transaction in the past two and a half years, including CucinaPro, Camerons Products, Fasta Pasta, MD Moms, Svan and Itzbeen Innovated. Little White Dog continues to search for additional strategic partners with proprietary, quality products and strong retail distribution that can enhance SCS Direct’s platform.

Link to Press Release:

http://finance.yahoo.com/news/scs-direct-inc-increases-housewares-110000809.html

Little White Dog is proud to announce SCS Direct’s purchase of CucinaPro.  This is the sixth transaction Little White Dog inc has sourced for SCS Direct Inc in the past two years.  Official Press Release is below:

SCS Direct Inc. Expands Housewares Offerings with the Purchase of CucinaPro

Connecticut Company Acquires Specialty Ethnic Housewares Line

FOR IMMEDIATE RELEASE

(TRUMBULL, CT) –SCS Direct Inc., a consumer products company based in Trumbull, CT has recently announced the purchase of Cleveland-based, niche specialty housewares company CucinaPro.

Established in 2005, CucinaPro is a company that was born out of the love of gourmet cooking from around the world. The company offers specialty ethnic housewares products of Scandinavian, French, Italian, Chinese and Mexican decent. The vast variety of products provide an affordable option for people looking to expand their cooking horizons. CucinaPro not only provides consumers the opportunity to cook specialty ethnic dishes that they have always wanted to try, but also the best gadgets and tools for traditional cooking.

Touted as the Number One U.S. distributor of the best-selling pasta maker, the Italian Imperia Pasta Machine, CucinaPro also offers specialty electrics and culinary tools and gadgets of all kinds. From pasta makers, to Pizzelle, Crepe and Ebelskiver Makers; or Bubble Wafflers, Tortilla Makers and Pierogi Trays, CucinaPro has a product to suit every cooks need.

Howard Greenspan, President of SCS Direct Inc. stated, “The acquisition of CucinaPro is the perfect complement to our growing housewares product portfolio. I am pleased to expand our retail penetration and online offerings to fill this very special niche market.”

Greenspan’s plans for the brand include increased retail penetration, heightened brand awareness and enhanced product packaging. While the product line is currently available for purchase in major retailers nationwide as well as on Amazon, Greenspan plans to increase online retail sales through overhauling the company’s existing website, CucinaPro.com, to include shopping cart functionality.

SCS Direct’s arsenal of housewares products are growing rapidly. In addition to CucinaPro, the company owns several best-selling houseware brands such as Camerons Products, Good Cooking, D’Eco, Fasta Pasta and Simple Cups.

The CucinaPro transaction was sourced and negotiated by Little White Dog Inc. based in Norwalk, CT. CucinaPro is SCS Direct’s sixth successful transaction in the past two years, including Camerons Products, Fasta Pasta, MD Moms, Svan and Itzbeen Innovated. Little White Dog continues to search for additional strategic partners with proprietary, quality products and strong retail distribution that can enhance SCS Direct’s platform.

For the original version on PRWeb visit: http://www.prweb.com/releases/2015/11/prweb13093475.htm

SCS Direct Inc Acquires Itzbeen Innovated Inc

Creator of the Pocket Nanny – The Award Winning Gadget Making Life Easier For Thousands of New Parents

Itzbeen Innovated Inc, developer of the award winning Itzbeen Pocket Nanny, was recently acquired by SCS Direct Inc, a consumer products company based in Milford, CT.  The Itzbeen Pocket Nanny is a simple to use, must for have item for parents of newborns and has won a prestigious JPMA Innovation Award, as well as the iParenting Media Award for Best New Product.

The Pocket Nanny has helped thousands of sleep-deprived parents remember important baby care tasks.  This clever device keeps track of when baby last napped or ate or had a diaper change, so new parents do not have to rely on their memory.  It features one-touch timers that count up since the last changing, feeding, napping, as well as, optional alarms and a soft glow nightlight. The Pocket Nanny can be found at Amazon, Babies-R-Us, buybuyBaby and numerous other retailers.

“I look forward to seeing the next chapter of Itzbeen unfold and do great things with SCS Direct,” stated Greg Sheldon, founder of Itzbeen Innovated.  “I’m also looking forward to developing future products together.”

The merger of Itzbeen Innovated with SCS Direct Inc strengthens the growing baby product sector that SCS has been building over the past several years, including Little Sprout Feeding Cups, Flyebaby infant airplane seat, and the Lullaby Light Cube portable Travel Soother.  “We can’t wait to see what the future holds,” beams SCS Direct Owner Howard Greenspan.  “It’s a terrific partnership and introduced many mutually beneficial synergies for both companies.”

The Itzbeen Innovated Inc. transaction was sourced and negotiated by Little White Dog Inc based in Norwalk, CT (www.LittleWhiteDoginc.com), the exclusive M&A representative of SCS Direct.  Little White Dog continues to search for additional strategic partners with proprietary, quality products and strong retail distributions that can enhance SCS Direct’s platform.

SCS Direct Inc. is a product development company and creator of best selling brands that include:  Flyebaby, Ride Along Dolly, Simple Cups, Deco, Good Cooking and numerous others.  SCS products are featured in countless independent stores and mass retailers such as William Sonoma, BJs Warehouse, Bed Bath and Beyond, ToysRus and many more.

 

link to official press release

Little White Dog Inc is please to announce the strategic acquisition of Camerons Products, a leading wholesaler of Barbeque and Smoking accessories based in Colorado Springs, Colorado, by SCS Direct Inc.  Camerons Products has sales relationships with nearly 6,000 outlets and has developed barbeque and smoking accessories since 1986.

SCS Direct Inc., a rapidly growing consumer products company, retained Little White Dog Inc (www.LittleWhiteDoginc.com) as its exclusive M&A representative to search for a strategic partner with proprietary, quality products and strong retail distribution.  Little White Dog Inc began the search in March, 2013 with a preliminary look at thousands of companies, followed by a deeper dive into several hundred before finding suitable candidates. Camerons Products strong reputation and extensive distribution network built over 25 years by Chris and Ann Malone, is an optimal strategic fit for SCS Direct Inc.  In addition, Chris’ and Ann’s expertise will add tremendous value to the SCS platform.

SCS Direct Inc ranked #296 (#14 in retail) on the 2012 Inc 500 List of America’s Fastest Growing Companies.  SCS Direct Inc is please to welcome Chris and Ann Malone, as well as Camerons Products other employees to SCS.

Below is a link to the official PR:

SCS Direct Inc. Acquires Camerons Products

http://www.prweb.com/releases/scscamerons/09/prweb11139342.htm

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