#51: Amazon FBA Business Making $350k/year

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In this week’s issue:

  • πŸ—„οΈ Traditional business - 1 listing

  • πŸ›’ eCommerce - 1 listing

  • ☁️ SaaS - 1 listings

  • πŸ•΅πŸΌβ€β™€οΈ Service - 2 listings

  • πŸ›’ eCommerce - 2 listings

  • ☁️ SaaS - 1 listings

Alright, Let’s explore!

Estimated Reading Time = 5 minutes

πŸš€ Startup Spotlight

Discover profitable online and traditional businesses.

πŸ’° Asking Price: $575,000

Recreational company founded in 2009 that offers zipline, segway and snowshoe guided tours and adventures in a mountain destination area. The dominant source of revenue for the company is the zipline tours. Zipline tours are offered year-round with the peak season during the summer.

Owner only works on-site 2 to 3 days per week every 3rd week.

Type: Traditional Business

βœ… Key Highlights

  • $988,000 Gross Revenue

  • FF&E: $1,000,000

  • $50,000 in inventory

  • $200,000 in Real Estate

πŸš€ Growth Opportunities

  • Real Estate: Adjacent property for sale that could be used to expand operations and/or add additional tourist services.

  • Seasonal Promotions Introduce special offers and discounts during off-peak seasons to boost customer turnout

🚩Cons

  • Staffing fluctuations: Varying employee numbers between seasons could lead to operational challenges.

  • Potential Hidden Costs: The significant investment in facility improvements and safety compliance could harbor hidden maintenance or upgrade costs.

❓ Questions

  • Does the business allow the owner to be less involved in the future?

  • How often do you see staff churn in the business?

πŸ’° Asking Price: $1,100,000

This Amazon FBA business sells two common products used in most homes and offices. The two hero ASINs typically rank in the top 10 and top 25 in their subcategory thanks to a focus on product differentiation, product quality, and excellently performing advertising processes.

The business generates 75% of revenue from the Amazon US marketplace, while the remaining revenue comes from other Amazon marketplaces. In 2023, the revenue grew 45% YoY to $1.18M while SDE grew 100% to $343K.

Type: eCom

βœ… Key Highlights

  • $1,218,537 in TTM revenue

  • $353,628 in TTM profit

  • 65% product gross margins

  • SDE margins at 29%

  • Owner works 15 hours per week

πŸš€ Growth Opportunities

  • DTC Channel: The brand has proven traction on amazon and has the ability to expand by creating a ecommerce store through shopify.

  • Product Innovation: As the new owner I’d look into trying to figure out how to add another hero SKU into the product mix to have less dependency on just the 2 hero SKUs available.

πŸ’° Asking Price: $325,000

Blinksale has over a decade of operating history, very low customer support demand, stable profits, and a large TAM for growth opportunities. 'Free' competitors in the space, like Wave Accounting, are starting to charge monthly subscriptions for comparable invoicing tools.

Type: SaaS

βœ… Key Highlights

  • $103,000 in TTM revenue

  • $87,000 in TTM profit

  • $8,000 last month revenue

  • $6,000 last month profit

  • Large TAM & Profit margins

  • Limited support demand required

πŸš€ Growth Opportunities

  • Pricing: Usage based pricing or freemium plans are an option to help with attracting new users to the platform.

  • Integrations: Expanding beyond organic growth through integrations with partners will help reach a much larger audience with low effort on marketing budget needed.

❓ Questions

  • What’s the current founders day to day like?

  • Does the new owner need a lot of tech understanding to run the business?

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