RMRB 1376 – Building an Amazon FBA Business Making $31K per Year in the Health & Fitness Niche

In this episode, Lauren talks to the seller of an Amazon FBA business created in May 2021 in the health & fitness, children, office supply, and medical niches. Listen in to find out how the business makes an average of $31,492.00 per year in net profit, why the seller has decided to sell, the lessons learned from running the business, and much more.

Visit https://empireflippers.com/listing/93081 to learn more about this business.

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Transcript

Forget gurus. Forget anyone claiming to be an online business expert without going through the challenges of entrepreneurship themselves. The Real Money Real Business Podcast is here to prove the best insights in online business come from your fellow online business builders.

We dig into stories of entrepreneurs selling their businesses on the Empire Flippers Marketplace so that you can learn how they made their businesses profitable, how they overcame obstacles, and what lessons they learned in their online journeys. If you want to take your business and your knowledge to the next level, you've come to the right podcast. Let's get started.

Hey, everyone. Welcome to another episode of the Real Money Real Business Podcast. We record these interviews so that potential buyers can learn more about the business and the seller to help them make an informed buying decision.

If you would like to learn more about this business, including details like what type of business it is, how much revenue and profit it makes, and all of the assets included with the business, simply visit empireflippers.com/marketplace and search for this business's listing number, which you can find in the video thumbnail and in the description. Or, if you're watching this on YouTube, you can click the link in the description to go straight to the listing.

So, without further ado, let's get into this interview.

First up, let's learn a little bit about you. Can you tell us about your background in building and running online businesses?

Hello, I'm a mechanical engineer, and I started Yogi Fidgets in 2021. My background helped me develop our own fidget product and work closely with our manufacturers in China. I launched the product on Amazon and have managed the main parts of the business myself, including inventory, PPC, and customer service.

Over the years, I've sold around 100,000 units. Today, most orders are handled by Amazon FBA, and I spend about four to five hours a week running the business, mostly on PPC.

Why are you selling the business now instead of keeping it and growing it further?

I'm selling the business because I want to focus my time on the new software business I'm developing. It's software for Amazon sellers, which I am deeply involved in. I've been running this business for several years now, and I believe it can grow, especially with new products. But growing it will take a lot of my focus, so I decided to focus only on the new software I'm building. This is why I want to sell the business for now.

Can you describe the amount and the type of work that you do on this business to maintain it?

I spend about four to five hours a week on the business, mainly working on Amazon Ads, or Amazon PPC. Most of the business already runs automatically. Every few months, I start a new production order. The factory already knows what to do, so it doesn't take much time. There is also very little customer service, if any.

Our stock is stored in an Amazon AWD warehouse. It's long-term storage. Amazon then moves it to an FBA warehouse when needed, so I don't need to manage those transfers myself. It's all automatic.

I also have a few other software tools that help me manage the account automatically. And that's it. Basically, if a buyer wants to launch new products, they will need to spend additional time on that. But other than that, that's it.

So, if you were to keep this business, what are some of the ways you would try to grow it?

If I kept the business, I would first launch the new fidget product that I've developed. It's an original design. It doesn't exist today on Amazon. It's something another engineer and I designed. It hasn't been manufactured yet, but it's ready for production, so you can do that.

Also, I would add other products to the catalog, continue working to improve the Amazon ads, and try to sell more products in Europe.

Right. And what would you say are the biggest risks with this business that buyers should be aware of?

I think the biggest risk is that almost all of our online sales today come from Amazon. So, if Amazon makes changes, our sales could be affected. This is a risk for every Amazon seller today.

We do have some diversification across markets. We sell in the US and Canada, and also work with a distributor in Europe. So, each market has its own system and its own stock. We have some protection with that, but we still depend heavily on Amazon.

I can say there is also a strong, ongoing demand for fidget products. These products have stayed popular for years, and people are always looking for something new and original. This is also why we see more competitors entering the market. The demand is a strength of the business, but growing competition is also a risk.

How much support are you willing to offer the buyer who acquires this business?

I'm happy to support the buyer during the transition. I manage the business, the Amazon ads, inventory, production, and everything else. I will also be happy to answer questions after the handover and help as much as the buyer needs.

I want them to succeed, as long as we work together with passion and respect. We can do that.

Are you open to negotiating something like an earn-out agreement?

No, I'm not interested in an earn-out.

Okay, final question. If you had to put yourself in the shoes of a buyer, why is your business worth buying?

If I were the buyer, I would see value in the sales history and the chance to grow the business. We have sold about 100,000 units so far. The brand has a registered trademark and a US design patent. There is strong demand for fidget products. People continue to look for new and original ones.

We are basically running the business automatically. It takes very little time to manage the business as it is. A buyer could build on this by launching the new fidget design we have, adding other products, improving the ads, and selling in other countries.

So, there is much that can be done, which, as I said in the previous question, I can't do right now because I'm focused on a different business.

All right, everyone. Thanks for listening. To learn more and see if this business is still for sale, head over to empireflippers.com/marketplace and search for this business's listing number, which you can find in the video thumbnail and description. Or, if you're watching this on YouTube, click the link in the description to go straight to the listing.

Once you've unlocked this listing, you'll find everything you need to know about this business. Thanks for joining us. See you next time.