Passive Amazon FBA Business For Sale - 6 Yrs. Old - Upward Exits

Private Label Amazon FBA Business - 4.6 Star Products

Overview

Upward Exits presents a 5 year old Amazon FBA retailer of branded, high margin outdoor equipment.  

The seller spent a lot of time and money to find a manufacturer that could consistently produce a high quality product on time and on budget. This attention to detail and product quality is the reason why the products have continued to receive great reviews, increase in sales every year and earn several amazon badges.

In addition to the high quality products that have amassed thousands of reviews, the seller worked with a reputable Amazon consultant to develop a product launching strategy that helped the business launch new products successfully. This consultant has indicated that he will be available at his standard rate to assist the future business owner.

IndustryJewelry
Business ModelOutdoor Equipment
Time Commitment (from seller)5 Hrs./ Week
Age5 Years
12 mo. Profit$800,000
Asking Price$2,500,000
Approximate Inventory$150,000
Valuation Multiple3 X

Operations

Because the business only sells via Amazon FBA and the seller has streamlined the operations, the business takes only a few hours per week of the sellers time. 

Recently the seller has brought on one of his childhood friends to spend a few hours per week managing the account.

Business History

The business is 5 years old and has been operated by the seller since its inception.

Reason for Sale

The seller has built the business into what it is today without any intention of selling it. He has a young family that he desires to spend more time with as well as dabbling in some other business ventures.

Deal Structure

Like many business sellers, this seller has a bias for cash at close. The seller has indicated that he will potentially accept a small royalty or note if the buyer has a proven history of success selling on Amazon and he believes the final compensation is fair.

Buyer Profile

Although operating the business is not complicated, we don’t suggest that it be purchased by an industry newcomer. We believe that a current Amazon seller, private equity group or search fund would be the best buyer for the business due to it’s size and the capital required to purchase it.

Summary

IndustryOutdoor Equipment
Business ModelAmazon FBA
Time Commitment (from seller)5 Hrs./ Week
Age5 Years
12 mo. Profit$800,000
Asking Price$2,500,000
Approximate Inventory$150,000
Valuation Multiple3 X

Finance Overview

The seller did not use a professional bookkeeper as he never planned on selling the business. The business does use third party sales software (Seller Board) to track financial performance and track inventory.

The financial statements have been created by exporting revenue and expenses from Amazon and COGs information from SellerBoard.

Assets

  • Amazon Seller Central account.

    • If the buyer is already an Amazon seller, they may propose an asset purchase where product listings are purchased instead of the Seller Central account.

  • Trademark for brand name

  • Business relationships with the consultant and manufacturer.

  • Social media accounts

  • Inventory (will be an additional cost calculated at close)

Opportunities & Risks

The seller has done a great job of creating a capable management team which mitigates some of the risk for the new buyer. Amazon businesses are seeing an increased number of competitors which have squeezed margins, however.

The opportunities in this business are to expand geographically and add a more meaningful eCommerce sales channel on the Shopify site by advertising on Google and social media.  Because the products are highly regarded and proprietary, a wholesale channel could also be added.

Request More Information

Buyer registration and a completed non-disclosure agreement are required in order to receive access to the data room for this business.

If you have not dealt with Upward Exits before, we may ask you for more information in order to assure the business information is only being viewed by those with legitimate purchase intent and ability.