Featured Listing: CONFIDENTIAL

About the business

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

I’m an entrepreneur at heart with corporate experience from Fortune 100 companies, giving me a blend of being agile, scrappy, while also focusing on scale and profitability. I started this venture during my time at Amazon (no conflict of interest and they actually incentivize employees to become sellers).

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)

Our CAC this year was $0 as we didn’t spend any paid advertising dollars, so all sales that came in were organic. We don’t directly measure CLV, but over the past quarter have seen up to 17% repeat purchase order rate, and have a 9.57% conversion rate (e.g. 1 in 10 people who search for our product category on Amazon.com and land on our detail page end up purchasing our product).

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

Most of our marketing efforts have come from organic SEO optimization. My goal when I launched this venture was to create a product that didn’t need to rely on paid dollars to sell through, and so far we have been successful considering nearly 100% of our lifetime sales (over $100K) have come from organic growth.

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?

Yes, I am the only person that runs this business, and I spend less than 5hrs/week on it. I have four suppliers that handle manufacturing, shipping, and inventory storage so the business is fairly streamlined.

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

To continue operating the business as is all that is needed is to 1) create a shipment when additional inventory needs to be shipped from the storage facility to Amazon’s warehouse (< 10 min per order trigger, as this is primarily handled by the storage facility), 2) monitor customer reviews, 3) do bookkeeping (I currently use Quickbooks Online), and 4) place an order for new inventory to be made from our overseas supplier (1-2x per year).

Growing the business

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

The three biggest opportunities are to 1) expand globally, 2) improve inventory management, and 3) turn on paid advertising to kickstart sales flywheel.

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

This is an Amazon FBA business, so all revenue comes from people that find and purchase the products on Amazon.com.

What marketing channels are most profitable for the business?

Amazon.com.

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

Nearly 100% of our sales are organic. This is because I spent 6-8 months before launching on finding a strong product/market fit and optimizing the listing for organic SEO on Amazon.com.

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

1 person (me).

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

I recently had a child so am currently looking to purchase a home, for which we would use the proceeds from the sale of this venture.