This Business Has Sold
(Note: the list price is updated each month based on the trailing 12 months cash flow)
Highlights:
Revenue: $1,073,581
Cash flow/SDE: $193,051
List Price: $386,000 + inventory
Multiple: 2x
Private Label Brand with products in the Baby category
Brand established: June 2016
Amazon Brand Registry
Product diversification: 4 products with 3 variations. The main product accounts for ~40% of income.
Amazon FBA Brand in the Baby Niche with 4 (+ 3 variations) unique and cross-promoted products selling in the EU and UK markets.
Strengths
- No safety concerns/restraints as the products are not baby safety products.
- Great cross-promotion options due to a very specific niche-market.
- High-quality products that were designed to stand out and be of higher quality than the competition.
- Attractive branding.
- Optimized listings with great images and specific USP’s to stand out.
- All customer service within Amazon is fully outsourced to a German company, which is specialized on customer support for Amazon sellers.
- Existing base of German customers that love to test our free products and write voluntary reviews for us in a Facebook Group that we created.
- All the processes that are outsourced are systemized and there are very structured training videos to train someone to take over the job.
Weaknesses
- One of the highest-selling products is seasonal and sells well in summer.
- The revenue is (mostly) generated in Germany currently.
- Shipping by sea is required to get the best margin, which has longer lead times.
Opportunities
- Launching more related products.
- Expanding into other Amazon marketplaces.
- Sales off Amazon via newly created Shopify store.
- Economies of scale from buying more inventory for better margin.