Facts and Figures
Highlights / info:
- $99k in sales since May 17, 2018 across 3 products @ avg. price of $46.06.
- 35% to 40% profit margin across products.
- 59% of the sales are organic
- 41% of the sales are from Amazon PPC @ 8.8% Acos.
Sales distribution across 3 products (women’s spring to summer accessories)
- product A (69%)
- product B (25%)
- product C (6%); started selling this only a few months ago during off peak months. Has potential.
- Sitting on $33k worth of inventory at landed cost.
Why should someone buy this business?
I know there will be a boost during Christmas and the remaining inventory will sell in the spring / summer. However, I will need the cash for taxes, as well as re-investing in my software business.
If you have the cash and don't need an immediate return (January - March), the business is set up to do even better in 2019.
I've built relationships with 12 influencers (25k-100k follower range with great engagement) interested in promoting the products. Waiting until Spring of 2018 to launch the campaigns on Instagram.
- Trademark pending; filed in June of 2018.
- Strong listing - amazing pictures and keyword ranking.
How can the future owner improve this business?
This business is set up for growth, but I:
1. Have limited time to invest in this
2. Have done what I can to take it from 0 to $100k, but not familiar with more advanced Amazon strategies
Business is seasonal and does really well in the spring / summer months. It was my first year in this business and did a terrible job timing inventory.
In addition, I have 0 experience driving traffic via ads or converting orders to reviews.
Areas of improvement:
1. Driving traffic to listing - I have a customer list of ~2k people that have purchased. If someone is good at Facebook ads, they can use this list to re-target for reviews or set up lookalike audiences.
Converting reviews. I've converted <2% of orders to reviews. Haven't done any campaigns to drive reviews, just simply hoping whoever purchases leaves something good.
Using current customer base to springboard new products in the market.
- Key Words Ranking
- High levels of Automation
- Large Customer Database
- Low Time Commitment Required
- Passive Revenue
Opportunities for a new owner
- Launch New Products
- Improve Current Marketing Efforts
- Improve or Outsource Operations
Key day-to-day operations
- Customer Support / Service
- Managing Inventory
- Amazon PPC
- Influencer Marketing
- Customer Database
- Partnerships and Enterprise Sales Agreements
Post sale support
This is support provided by the seller when transitioning the business to a buyer.
About the Seller
I primarily run a fitness start-up - fitness apps for influencers. This takes up the bulk of my day. My Amazon FBA knowledge is very limited.
My wife and I were on our honeymoon in Bali and saw these purses everywhere. Several of her friends had asked her to bring some back. Given how much suitcase room they take up, I was curious to look up how much they went for on Amazon USA.
I realized the product had really healthy margins. We put a small order in and sold out in 3 days (in May). We placed a larger order which arrived at the end of June, it sold out within a few weeks. We placed another larger order which arrived at the end of summer.
Given the seasonality of the business, we did a terrible job timing inventory... primarily due to inexperience, as well as the time it takes to manufacture and deliver the product.