This Amazon FBA business, established two years ago, specializes in selling wooden bookends at a 35% profit margin. The business is valued at $20,000, reflecting a 3.1x profit multiple. It boasts an average order value of $35, a 5% refund rate, and maintains steady passive income, supported by 60 customer reviews averaging 4.4 stars. The business is currently rated as "Amazon's Choice" for its product category, emphasizing its popularity and potential for ongoing sales.
Operational management is streamlined, requiring only one hour of weekly commitment to handle advertising, customer service, and inventory management. Inventory is sourced from a supplier and shipped directly to Amazon warehouses, minimizing logistical complexity and overhead costs. The customer base is entirely U.S.-based, but there is potential to expand into Canadian and Mexican markets. Expanding the product line could also increase repeat sales and further enhance the brand.
Financially, while the first year saw losses due to substantial inventory investment, the second year marked a significant turnaround with a 65% increase in sales and a fourfold increase in gross profit. Although expenses rose by 55% due to higher Amazon FBA fees, 2022 was highly profitable, and this trend is expected to continue. Seasonal peaks occur in Q4, coinciding with the holiday season.
Growth opportunities include diversification of the product line and international shipping expansion. Post-sale, the current owners will provide one month of transition support as they pursue other business ventures, offering the buyer a chance for passive income in a less competitive market segment.
Flippa’s platform is free for buyers. Here are our tips for first-time buyers:
Before making an offer
1. Look for verified sellers. Sellers should verify their email, phone, and government ID. When a seller has completed all verifications, we identify them with a checkmark like this:
2. Review financials. Financials are seller-provided inputs. Always ask for verified financials. Ask for a tax return or request access to their dashboard. if it’s an ecommerce store get a transaction report.
3. Review traffic. Sellers can grant you access to Google Analytics. Ask for read-only access to verify site traffic.
4. Schedule a call. Communication is key. The best way to find out more is to speak directly with the seller. For your protection, keep all communication within Flippa.
5. Make the offer on Flippa. We’re here to help. Flippa does not charge buyers and by making an offer on Flippa you’ll get access to our post-sales support team.
1. Agreements & Contracts.
Connect with a US-based lawyer or purchase asset-specific template legal documents via Flippa Legal.
2. Conduct Due Diligence.
You can conduct this yourself or use our trusted network of industry-leading due diligence partners. They can provide in-depth analysis, identify hidden risks, and independently assess the value of the business. Learn More