Tell us a little about yourself. What’s your background? How did you start the business?
I learned how to successfully launch a winning Amazon store from my past 6 years of doing Amazon businesses. This brand was created based on 3 profitable key principles: 1) Selling consumables – so customers come back for more product(s) each month, generate returning client-based and strengthen the revenue 2) Premium/ High-end/ Luxurious/ Higher-quality/ Upscale product types and designs – so the brand can charge a premium price and enjoy a whopping 70% profit margin on each product. 3) Profitable segment/ target market being: Females, age 30-55 years old, assuring they are at an age where they can afford a premium product that solves their “problem” (ageing skin). Also, this target market likes (and can afford to pay extra for the quality) to go organic, natural, vitamins-infused, nutrient-rich, superfood oriented, eco-friendly, etc – which are all attributes of this brand. The above 3 key principles were applied when the brand identity, profile and path to success was strategically planned.
As an e-Commerce business, where are your products made?
All 6 products are made by 1 absolutely amazing supplier. The supplier is: trusted, fast (2.5 weeks lead time!), responsive, very professional and around for 20 years (big, family-run cosmetics direct manufacturer so the sourcing prices are as low as they can ever go, leaving an even bigger profit margin from Amazon sales). The supplier has a large catalogue of more products that could be added to the brand easily if a new owner wants to grow the brand and amplify earnings. Moreover, the supplier does custom formulas and asked me many times if I want to add (for marketing purposes) any special ingredients to the products: like a special essential oil or any special ingredient that could increase the marketing potential of the products as they can do it easily. The supplier is hands down one of the big assets of this brand and this business and the relationship with them and proper introductions will be of course one of the items included in the sale.
How have you marketed the product and where are your customers originating from?
The brand is well optimized for keywords and searched terms on Amazon.com via strategically putting them in key places in the back end of Seller Central (something I learned in 6 years of doing Amazon, will be happy to share all my strategies, knowledge and resources during 1 month of post-transition training & support period I offer) so all heavy lifting has been done and the foundation has been laid out for growth from here. Amazon takes care of the traffic and sending customers to the listings if the listings are properly optimized. All customers come from Amazon.com. The brand has not yet taken any advantage of additional income streams and growth opportunities like adding its own Shopify store, etc – lots of room to take the brand to the next level.
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, one and only owner-operated (laptop-lifestyle, automated already), no employees, no office, no headaches 😉 Takes around 5 hours per week to manage, often less. It’s a bottom-line low overhead 100% Amazon FBA business model, where inventory is stored and shipped to customers by Amazon (no warehousing or staff needed which makes it: low to no workload and simplified operations for a new owner).
What does someone need to do to continue operating the business in its current form?
Logging in to Amazon dashboard daily, ensuring more inventory is ordered ahead of time so products continue to sell without out-of-stock interruptions – mainly that. It’s a highly automated model (Amazon takes 25% for handling shipping and most customers inquiries about returns, replacements, anything shipping related is outsourced and 100% hands-off). It’s a turn-key set-up, ready to scale or maintain for passive cash flow.
Can you list a few opportunities for a potential new owner to continue growing the business?
So many! The brand has a lot of room for growth if the new owner is willing to put in the work and scale it (or if they hire some experts to do that for them):
1 – Turning on Amazon ads (I did not take yet any advantage of this opportunity).
2 – Expanding to other marketplaces with existing product selection (eBay, Walmart, Jet, Etsy; simply listing the existing products on other platforms or on social media).
3 – Capturing additional sales via creating own Shopify site.
4 – Driving Google, Youtube, Facebook traffic to the listings or own Shopify or Amazon store (lots of traffic agencies out there where this could be outsourced to).
5 – Creating A+ cross-selling content to increase sales at checkout.
6 – Adding some cross-selling coupon codes or promo codes to encourage customers to buy sets to increase sales.
7 – Expanding product line with more products since the supplier has an amazing catalogue with even more amazing prices.
8 – Offering existing product selection internationally on Amazon Canada, UK, Australia, etc by adding more countries to the existing US Amazon dashboard. To name a few growth opportunities 🙂
What has been the evolution of this asset since its launch?
Slow and steady growth trend as the products get more traction on Amazon.
How does this business make money? What are the current revenue streams?
The revenue stream is organic Amazon sales. The owner has not yet taken advantage of additional income stream and traffic sources like Amazon advertising opportunities, own Shopify site, more marketplaces to list the products or expanding current listings internationally with Amazon.
What marketing channels are most profitable for the business?
Organic Amazon sales only. The owner has not done yet any paid traffic sources but recommends them if someone wants to grow and scale the brand further.
How does the business currently acquire customers and what is your breakdown for marketing costs?
All customers are organically sent to listings by Amazon. It’s Amazon who acquires more traffic, more customers and spends millions on expanding. The brand only capitalizes on that traffic that Amazon itself is paying for.
How big is your current team? How many people does it take to run this business?
No team, no employees. Since the products are optimized and the brand is automated for months now, it takes 1 person who has 5 hours a week to look after the basics. No special skills or prior experience in the Amazon space is required of the new owner – the seller is motivated and willing to train for a smooth transition to support the new owner’s and brand’s success.
What’s the reason for selling your business on Flippa?
I got admitted to the university of my dreams and my 1st semester soon starts. I would need to focus on studying and passing difficult exams as the field of my studies is very challenging, so I won’t have any time to look after the brand, much less to grow and scale it so I am looking for a good home for my brand 🙂