Featured Listing: 3-year-old Amazon UK FBA Store in the Baby Niche

About the business

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

I started Nested Fox after having my first child. I wanted to make gender-neutral new baby gifts that appeal to parents. My previous background was as a manager in the voluntary sector but I took an Amazon FBA course and immersed myself in the field and in parenting my two babies.

As an eCommerce business, where are your products made?

China.

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

My repeat purchase rate on Amazon is low. This is more of a quick and easy new baby gift purchase than a consumable product. I have good margins so I am able to use Amazon PPC effectively to reach the customers looking for a unique new baby gift.

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

My primary marketplace is Amazon UK followed by Amazon Canada (I live in the UK and am from Canada so I can say that I am both a UK Mom and a Canadian Mom). I use Amazon PPC as my primary form of marketing. I have also sold successfully on Etsy and had some wholesale purchases from independent stores using online wholesale marketplaces. I do not pay for additional marketing on those platforms though so there is an opportunity for a new buyer to maximize the potential of google ads and Facebook ads etc which I have not done.

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?

The initial time investment was at the product development stage when the business took more of my time. It is now not more than an hour or two of my time each week mostly to do with PPC management, accounting, and arranging for postage of stock from Storage to Amazon or for a wholesale order. The business is owner-operated. I employ an accountant and a storage/fulfilment facility.

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

Keep track of inventory levels, order stock as needed, manage PPC spend, and related admin tasks.

Growing the business

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

The business currently has 3 profitable products but there are many opportunities for new products in this niche. More attention to off amazon marketing is a big opportunity as well as expanding to Amazon US.

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

The business began with one product – the Baby Moment Cards, which have been our most successful product throughout. There have been some other good but more marginal products tested and retired and then the introduction of the new mother costume jewellery products which get great reviews and have a great profit margin. Originally the idea was broadly baby products but I have niched down to baby shower gifts that can fit through a letterbox. This also helps with shipping and storage costs.

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

Amazon UK is where the bulk of the revenue comes from followed by Amazon Canada and wholesale orders. Etsy recently would have been in that mix but I paused the account to stop spending time posting individuals. orders. The account has good reviews and could be restarted if you have a better fulfilment set up for picking and packing off Amazon.

What marketing channels are most profitable for the business?

Amazon PPC.

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

100% Amazon PPC.

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

Just me.

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

I have already started another business and I’m looking to streamline my work week to focus on the new business.