Website Closers® presents a Third-Party Amazon FBA Business that has – through a network of close supplier relationships and clever structuring – skyrocketed in the past few years and is projecting strong sales for the foreseeable future. The business is straightforward to operate with minimal or no prior Amazon selling experience required. The seller has developed a robust Standard Operating Procedures and Protocols have made it possible for the company to handle such a diverse product line, while still offering a light, flexible workload for its ownership.
Our 3rd party lending partners at Website Closers have given this business a green light for SBA pre-qualification, which means that a Qualified Buyer could purchase it for as little as 10% down. It would then be amortized over a 10-year period at reasonable interest rates, letting the buyer achieve an ROI much faster than they would without an SBA loan. The fact that this business does not require a busy daily workload should also be appealing to a buyer eager to scale this operation over the next decade.
Launched in 2017, the company sells on Amazon, which has become the ideal platform for marketing gifts and novelty items due to the low customer acquisition costs and massive traffic. The company went through detailed research before deciding which items to to offer from 6000+ items available to them. A new owner can continue to add additional wining items to increase sales. These products are offered by long term suppliers and carefully selected based on their ability to sell, irrespective of what type of item it is. This gives the company the advantage of operating across several niche categories, such as home accessories, novelty décor, hats, and many more. This has also given the store high recurring revenues that make this a strong value proposition for a buyer, along with their impressive 20%+ Profit Margins.
This company maintains a close relationship with their suppliers, which is strengthened by their longstanding culture of transparency, honesty, and integrity. This relationship makes for a much smoother integration progress for new products, which, in turn, makes for an easy way to grow the business and the amount of revenue that it brings in. Most of their vendors have only a small pool of authorized sellers, so this enterprise has strong relationships with suppliers who are not open to other 3P sellers. Additionally, that means their competition is low since this company is the only FBA seller for some of those vendors.
All their SKUs are sold Prime and completely handled through Fulfillment by Amazon, which lets them maintain the business at its current size without compromising product quality or shipment times. The lack of a warehouse means that the owner doesn’t have to worry about costs or upkeep and provides a sturdy foundation for further expansion of the brand and product line.
This business is remarkably hands-off to operate and manage. The only employees consist of an operations manager and a virtual assistant, with the rest handled by suppliers and Amazon itself. The current owner spends only 3 hours per week on tasks, with their main responsibilities consisting of customer service responses and situational decision making. The simple nature of the management structure means a buyer will have no trouble stepping into the business to see the same consistent profits and success.
Remarkably, the company has achieved its massive growth throughout the years with almost no advertising spend. This opens up a fantastic scale opportunity. By developing an advertising campaign, this enterprise would be able to attract a significantly larger customer base to their storefront. This would include investing in PPC ads on Google Search, which is frequented by many consumers, and on Amazon itself. That’s not the only scale option, however. Profits could soar in multiple ways.
Given their thriving reputation on Amazon, international expansion through the platform looks very promising. They could start selling on Amazon UK, Amazon Canada, and other global Amazon websites to establish themselves in additional countries and start bringing in revenue from around the world.
Another valuable option would be to expand off Amazon altogether, and start selling from other popular online retail stores, such as Walmart, Etsy, and eBay. They could even develop their own brand in order to establish their own storefront and start selling D2C. This would provide a powerful new sales channel, create a new wave of growth opportunities for the business, and make the company more recognizable to the average consumer.
Though the business functions well with its current staffing, it would be highly beneficial to construct a management team. A team would solidify relationships with the company’s suppliers, possibly convert these suppliers to exclusive agreements, and make it much easier to find and become authorized under new, profitable brands.
This acquisition has a truly immense amount of scale potential available for its buyer. Without a doubt, this offering would be ideal for someone who knows how to identify profitable and popular items without delay,
Their cash flow is strong with fast shipments on inventory and very short lead times. This is due to the company’s well-documented standard operating procedures and protocols, which will be provided to the new buyer.
A buyer should also consider that the vast majority of their SKUs have Minimum Advertising Pricing (MAP) which is aggressively enforced to prevent other sellers from a race to the bottom. It also ensures this business maintains its longevity.
The wholesale nature of the business also makes it great for adjusting the product line to fit market demand, in order to maintain reliable profits and upward growth.
If you’re interested in taking this incredible offering to the next level, contact Website Closers today to learn more.
This Amazon FBA Company is Represented by:
Tech, Internet & Amazon Business Brokers