Featured Listing: Amazon FBA Product Line With 4 Years of Profitable Sales History

About the business

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

Nico Jannasch is a location-independent e-commerce business owner. He’s spent the last 7 years traveling on every continent except Australia. I started selling with Amazon FBA 5 years ago. I’ve sold ~3 other small FBA businesses.

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)

CAC is very low because ~70% of customers come through organic Amazon searches.

We can’t track repeat purchases on Amazon (Amazon owns the customer) so we have a known CLV of only $15-$20 for most 1-time customers.

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

Most customers come through organic Amazon search.

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?

Administration

• Customer Support (<1 hour/week)
• Purchasing Inventory (<1 hour/week)
• Accounting/Bookkeeping (1 hour/month)

Fulfillment

• Amazon FBA Inbound Shipment Labeling (<1hr/wk)
• Managing International Shipments (1 hour/month)

Marketing And New Product Development

• Fully-Automated Amazon PPC Advertising (0 hours/month)
• Marketing Materials Creation (1-5 hours per project)
• New Product Development (<1 hour/week)

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

Switch over account login and bank account details. Say “Hello” to freelancers who are already in the account and doing their jobs. Say “hello” in an introduction email to the factory so that you can re-order when this is necessary.

Growing the business

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

Add a value-add carrying bag to the main 12-pack. Sell maracas, rain sticks, and wrist bells with the same “No Metal Pellets!” product feature.

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

Expanding from just selling a 12-pack to also selling 24, 48, 96, 240, 480, and 960 packs. (Large bulk packs have higher profit due to lower per-unit shipping costs.)

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

Amazon provides 100% of the company revenue. The business makes money because we buy these products for ~15% of the sales price on Amazon.

What marketing channels are most profitable for the business?

Amazon Organic Search – Amazon Sponsored Products

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

Amazon Organic Search – Amazon Sponsored Products

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

A freelancer account manager and logistics manager handle 95% of the work related to the business. The owner’s main job is occasional check-ins and doing required legal work like filing taxes.

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

Nico Jannasch (Me) sells ~30 other product lines on Amazon. I am looking to sell 1 product line to someone who will focus more on this specific product line. (Currently, my focus is split between many product lines and I am not providing this close focus.)