Featured Listing: An Established Amazon FBA Business

About the business

Tell us a little about yourself. What’s your background? How did you start the business?

I worked in the computer area in corporate America for 20+ years until I lost my job in 2000. After that, I had a variety of jobs including 10 years as a Costume Manager for a local show choir. I quit the costume job in early 2016 to focus on my daughter’s wedding. In September 2016, I started my online business. In 2019, I completed both of my financial goals and began to “coast” in the business instead of focusing on growth. You can read more about my business startup here: https://oldgettinplace.com/category/buzz-of-the-biz/

As an eCommerce business, where are your products made?

The products sold in the business are made both inside and outside of the United States.

What can you tell us about your Customer Lifetime Value (CLV) and Customer Acquisition Cost (CAC)

Since almost all of my income is from Amazon FBA sales, I’ve not invested any money in customer acquisition.

How have you marketed the product and where are your customers originating from?

Most of the customers for my income originate from the Amazon.com platform. I have created pins on Pinterest and (to a lesser extent) used Facebook posts to direct customers to all of my online platforms.

Is the asset on your listing owner-operated, how much time does it take to run the business, who else is needed on the team, and what is automated?

This business is owner-operated. For about a year, I used a prep centre to process my wholesale orders for FBA sales. I occasionally consult with a lawyer and accountant to get advice on specific issues. When I was growing the business, I averaged about 40 hours per week. During Q4 when I bought retail and sold on Amazon, I worked 40+ hours per week. ~~ Many tasks that I perform could be done with hired help or perhaps different software tools. I chose to do the work myself.

What does someone need to do to continue operating the business in its current form?

The first step will be to connect with the suppliers and get inventory to Amazon for FBA sales. After that, the new owner should become familiar with the blog, Shopify store, Etsy shop, Pinterest account and Facebook page. The content of those platforms can be expanded with more print-on-demand designs and products and additional blogs.

Growing the business

Can you list a few opportunities for a potential new owner to continue growing the business?

Optimize and advertising, including the use of videos. The Amazon account has a LOT of brand approvals. Take advantage of those approvals to find more products to sell on Amazon. The Merch by Amazon is at tier 500 with less than 100 active products. Create and list more print-on-demand products. List those products on Amazon Merch, Shopify and Etsy.

What has been the evolution of this asset since its launch?

Opened an Amazon account. Learned about Amazon FBA by selling garage sale finds and retail clearance items. Switched to selling wholesale on Amazon. Created the DIY Blog and print-on-demand products using Merch by Amazon, Shopify and Etsy. Also used Shopify for multi-channel-fulfilment orders on Amazon. Switched some wholesale to prep centre processing. Met my financial goals. Started spending less time on the business. Started spending just enough time to keep things running. Decided to sell through my inventory. Now I’m selling the entire business and retiring.

How does this business make money? What are the current revenue streams?

99% of the income is from Amazon FBA sales. Other income streams include print-on-demand sales via Merch by Amazon, Etsy and Shopify. Shopify sales also include multi-channel-fulfilment orders on Amazon. Affiliate income from the DIY blog.

What marketing channels are most profitable for the business?

Amazon FBA.

How does the business currently acquire customers and what is your breakdown for marketing costs?

Most customers are organic from the Amazon platform. I also use Pinterest to direct customers. Marketing costs are mostly Amazon campaigns and Google ads. The Google ads are currently disabled. Marketing average costs: 2019 – $30/month, 2020 – $160/month, 2021 $25/month.

How big is your current team? How many people does it take to run this business?

I’m a team of one. Initially, I paid a lawyer and accountant to help me get set up. To help me learn the business, I’ve paid for courses, coaching, and membership in a Q4 group. From Oct 2018 through to Dec 2019, I used a prep centre for wholesale items. In 2020 and 2021, my husband helped with FBA bagging and tagging. I do all my own accounting and taxes. To truly build the business, I believe there needs to be a team of more than 1.

What’s the reason for selling your business on Flippa?

My financial goals have been met. I’m looking forward to retirement!