Facts and Figures
Founded in 2015 and currently managed as a one person venture with an Amazon FBA sales model in the sports and outdoors category. This is a 3 year old private label business with 10 SKU’s, $15.9K stock on hand (included in the auction price), and an established third party revenue share agreement for a diversified income stream. The Amazon Seller Account is well established with positive seller feedback, and the private label products have hundreds of combined positive product reviews (average 4.5+ star ratings).
Sale includes the 3 year old seller account with a private label brand (FBA) that includes 3 products (10 SKU’s total) with variations in product size and colour. Current stock is included, with a current cost value of $15.9K. The FBA brand is in the sports and outdoors category, selling a range of camping and outdoor gear aimed at a young, adventurous market. There is plenty of scope to expand this range, which the current seller is happy to discuss with potential buyers.
Currently, the seller account manages sales of a large number of FBM items, which are owned and managed by a third party through a revenue share partnership. This partnership is included in the sale and can be continued by the new owner, if they wish. All FBM products are owned by the third party and all sales and shipping is managed by the third party. As per the partnership, 3% of FBM sales revenue are paid to the owner of the seller account. The new owner can choose to continue this partnership, or end it, as per their wishes. Please note: the below financial figures do not include this revenue (it has been left out of all financial reporting below). Please feel free to contact me with any further questions regarding any of the above.
Minimal time is needed to maintain this business in its current form (1-2 hours per week, across all tasks).
However, the above mentioned opportunities for growth will require more time to be focussed on business growth, particularly in listing promotion; primarily PPC and possibly influencer outreach and social media.
Fulfilment is managed via Amazon FBA for the 10 current SKU’s under the private label brand.
All other items currently sold through the Amazon Seller Account are Fulfilled by Merchant ($5K+ per month in sales) and managed by a third party via a 3-4% revenue share arrangement. These are fully managed by the third party’s team and no involvement is necessary.
This arrangement could be continued by the new owner, or cancelled - it is entirely up to the new owner to decide which they prefer. The revenue share is currently distributed after each fortnightly Amazon payment.
The private label brand focusses on entry level travellers and adventurers, selling travel and outdoor gear. Most customers are first time buyers. Repeat purchasers would primarily be buying as gifts. A small mailing list has been built from past customers, although this hasn’t been a focus, so there is a big opportunity for growing this in future. There are social media accounts set up on Facebook and Instagram, the focus has been on growing instagram in the past).
I am looking for a win-win situation for myself and the buyer and a quick sale, as such I am willing to sell at the value of current stock on hand, plus a very small premium. This leaves a lot of potential revenue and value to be added by the new owner, especially with the upcoming holiday sales season.
This private label brand was a personal project started in 2015 that I lack the time and focus to continue to grow. It has proven successful and there is a solid base here for a current seller to immediately expand their product line, or for a new seller to launch with well designed, high quality products. I have always focused on higher quality materials to differentiate the products on their quality, rather than focus on lower prices or prioritise higher profit margins via inferior quality materials.
In the past 18 months, as the single operator I have spent little to no time on regular maintenance and as such sales have gradually slowed. In recent months I have launched 2 new products and given my lack of time, I ran a combination of high expense PPC campaigns, and a strategy of listing products at lower prices to drive traffic to the listings, which is why there were relatively high expenses from July to September.
As mentioned above, there is a revenue share arrangement with a third party seller (managed through my Seller Account) which diversifies the income stream for the business (first month’s operation for this arrangement is November 2018).
There are 3 private label products included in the sale and the stock on hand (as at today) is:
Hammock straps: 838 units
Hammock bug net: 458 units
Pocket blankets: 333 units
- LLC can be legally transferred, if requested.
- Mailchimp account for mailing list
- Social media account: Instagram
- Social media account: Facebook.com/wlolife
- Revenue share agreement (3-4%) with third party for FBM sales ($5K+ sales per month)
- Amazon FBA Store (established 2015)
- Brand website wlolife.com
- Current stock on hand: 1600 units at a cost value of $15,800
Post sale support
This is support provided by the seller when transitioning the business to a buyer.
About the Seller
After graduating from University in Tasmania and working in Finance, Jarratt travelled internationally working seasonal hospitality jobs, where he developed a keen interest in high-end hospitality (and a continuing love of travel!). He is currently managing a 4 star boutique hotel in the Scottish Highlands with a highly reputable fine dining restaurant, and hitting the mountains on his days off.