Niche: Equipment

Listing Details

This listing is for an Amazon FBA business created in June 2019 in the equipment niche. The Amazon store features 2 SKUs related to an indoor home appliance. The business has seen strong growth in sales over the past 12 months, and has high ratings with hundreds of reviews for both products. These SKUs still have more room for growth in the right hands of a Buyer with broader marketing expertise.

Most of the sales come from the Amazon US marketplace (~99%), with a very tiny amount of revenue generated from the Amazon Canada marketplace (~1%). Inventory is shipped from the China-based supplier to a 3PL located in California, US, before it gets forwarded to Amazon FBA warehouses. For the Canada listing, the Seller has inventory sent to themselves before forwarding the inventory to FBA warehouses, but this process can be skipped; more information will be provided to potential buyers.

No employees are associated with the business at this time. The Seller only uses PPC advertising on Amazon. Driving traffic from other search engines and traffic sources is a potential growth opportunity for the Buyer to explore. The lack of social media presence could be one way to increase traffic to the product listings. Selling on external marketplaces could diversify revenue sources, such as eBay or Walmart.

Another way to improve the business is by applying for Amazon Brand Registry 2.0 to increase social proof for the product.

*We’ve decided to use an 8-month average of net profit for the valuation because we felt that a 12-month average did not accurately represent the current state of the business.