Passive Amazon FBA business – 6 years old

IndustryJewelry
Business ModelAmazon FBA
Time Commitment (from seller)3 Hrs./ Week
Age6 Years
12 mo. Profit$70,000
Asking Price$170,000
Approximate Inventory$10,000
Valuation Multiple2.4 X

Business Overview

Upward Exits presents a 6-year-old Amazon business selling jewelry that primarily utilizes FBA fulfillment. The seller has hired 2 virtual assistants to run the operations who are willing to stay with the company. This makes the business run very smoothly and will take very little time from a new owner. The business hold approximately $10k in inventory.

Operations:

The two virtual assistants who run 80% of the business will stay on to work for the new owner, minimizing the new owner’s time commitment. They have been with the company for an extended period of time and are familiar with the business.

Products:

The products are sourced from one of a few manufacturers that the business has used, all of whom are located in China. The lead time on product creation and shipping to the Amazon warehouses is 2-5 weeks.

The seller has a streamlined process in place to design new products and get them put into production by the manufacturer. The products are proprietary and take very little time to develop.

Marketing:

The business sells primarily on Amazon. Because of the business’ duration on Amazon and track record of customer service, the products rank highly in most search results. The business has also utilized Amazon PPC to get even more product exposure.

 In addition to the Amazon listings, the business also has productive Ebay and Etsy accounts, as well as an Ecommerce storefront where a small percentage of the sales come from currently. A new owner could expand marketing efforts by further promoting the Shopify store on Google Shopping and/or social media.

Assets:

  • Amazon Seller Central accounts for: North America, Europe, Japan

  • Etsy & Ebay accounts

  • Amazon Brand Registry 1.0

  • Ecommerce storefront built and hosted on Shopify

  • Business relationships with virtual assistants and manufacturers

  • Social media account

  • Inventory

Pros:

  • Over 6 years old with excellent vendor and product reviews

  • High margin product

  • Passively run

  • Proprietary products

  • Trained staff will stay on to run the business

  • Sells in multiple regions and through multiple sales channels

Cons:

  • Decreased market share due to an increase in the number of competitors
  • Increased PPC expense due to an increase in the number of competitors
 

Seller Interview

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