{"id":15387,"date":"2022-06-24T02:01:53","date_gmt":"2022-06-23T16:01:53","guid":{"rendered":"https:\/\/flippa.com\/blog\/?p=15387"},"modified":"2022-06-24T02:01:59","modified_gmt":"2022-06-23T16:01:59","slug":"featured-listing-amazon-fba-product-line-with-4-years-of-profitable-sales-history","status":"publish","type":"post","link":"https:\/\/flippa.com\/blog\/featured-listing-amazon-fba-product-line-with-4-years-of-profitable-sales-history\/","title":{"rendered":"Featured Listing: Amazon FBA Product Line With 4 Years of Profitable Sales History"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">About the business<\/h2>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/flippa.com\/11200158-amazon-fba-product-line-with-4-year-profitable-sales-history-unique-children-s-toy-lab-approvals-4-6-star-rating-brand-registered-sc-account\">View the listing on Flippa<\/a><\/div>\n<\/div>\n\n\n\n<p><strong>Tell us a little about yourself. What\u2019s your background? How did you start the business?<\/strong><\/p>\n\n\n\n<p>Nico Jannasch is a location-independent e-commerce business owner. He\u2019s spent the last 7 years traveling on every continent except Australia. I started selling with Amazon FBA 5 years ago. I&#8217;ve sold ~3 other small FBA businesses.<\/p>\n\n\n\n<p><strong>As an <a href=\"#\">eCommerce business<\/a>, where are your products made?<\/strong><\/p>\n\n\n\n<p>China<\/p>\n\n\n\n<p><strong>What can you tell us about your Customer Lifetime Value (CLV) and Customer Acquisition Cost (CAC)<\/strong><\/p>\n\n\n\n<p>CAC is very low because ~70% of customers come through organic Amazon searches.<\/p>\n\n\n\n<p>We can&#8217;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.<\/p>\n\n\n\n<p><strong>How have you marketed the product and where are your customers originating from?<\/strong><\/p>\n\n\n\n<p>Most customers come through organic Amazon search.<\/p>\n\n\n\n<p><strong>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?<\/strong><\/p>\n\n\n\n<p>Administration<\/p>\n\n\n\n<ul><li>Customer Support (&lt;1 hour\/week)<\/li><li>Purchasing Inventory (&lt;1 hour\/week)<\/li><li>Accounting\/Bookkeeping (1 hour\/month)<\/li><\/ul>\n\n\n\n<p>Fulfillment<\/p>\n\n\n\n<ul><li>Amazon FBA Inbound Shipment Labeling (&lt;1hr\/wk)<\/li><li>Managing International Shipments (1 hour\/month)<\/li><\/ul>\n\n\n\n<p>Marketing And New Product Development<\/p>\n\n\n\n<ul><li>Fully-Automated Amazon PPC Advertising (0 hours\/month)<\/li><li>Marketing Materials Creation (1-5 hours per project)<\/li><li>New Product Development (&lt;1 hour\/week)<\/li><\/ul>\n\n\n\n<p><strong>What does someone need to do to continue operating the business in its current form?<\/strong><\/p>\n\n\n\n<p>Switch over account login and bank account details. Say &#8220;Hello&#8221; to freelancers who are already in the account and doing their jobs. Say &#8220;hello&#8221; in an introduction email to the factory so that you can re-order when this is necessary.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Growing the business<\/h2>\n\n\n\n<p><strong>Can you list a few opportunities for a potential new owner to continue growing the business?<\/strong><\/p>\n\n\n\n<p>Add a value-add carrying bag to the main 12-pack. Sell maracas, rain sticks, and wrist bells with the same &#8220;No Metal Pellets!&#8221; product feature.<\/p>\n\n\n\n<p><strong>What has been the evolution of this asset since its launch?<\/strong><\/p>\n\n\n\n<p>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.)<\/p>\n\n\n\n<p><strong>How does this business make money? What are the current revenue streams?<\/strong><\/p>\n\n\n\n<p>Amazon provides 100% of the company revenue. The business makes money because we buy these products for ~15% of the sales price on Amazon.<\/p>\n\n\n\n<p><strong>What marketing channels are most profitable for the business?<\/strong><\/p>\n\n\n\n<p>Amazon Organic Search &#8211; Amazon Sponsored Products<\/p>\n\n\n\n<p><strong>How does the business currently acquire customers and what is your breakdown for marketing costs?<\/strong><\/p>\n\n\n\n<p>Amazon Organic Search &#8211; Amazon Sponsored Products<\/p>\n\n\n\n<p><strong>How big is your current team? How many people does it take to run this business?<\/strong><\/p>\n\n\n\n<p>A freelancer account manager and logistics manager handle 95% of the work related to the business. The owner&#8217;s main job is occasional check-ins and doing required legal work like filing taxes.<\/p>\n\n\n\n<p><strong>What\u2019s the reason for selling your business on Flippa?<\/strong><\/p>\n\n\n\n<p>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.)<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/flippa.com\/11200158-amazon-fba-product-line-with-4-year-profitable-sales-history-unique-children-s-toy-lab-approvals-4-6-star-rating-brand-registered-sc-account\">View the listing on Flippa<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>About the business Tell us a little about yourself. What\u2019s your background? How did you start the business? Nico Jannasch is a location-independent e-commerce business owner. He\u2019s spent the last 7 years traveling on every continent except Australia. I started selling with Amazon FBA 5 years ago. I&#8217;ve sold ~3 other small FBA businesses. As [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":15388,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","inline_featured_image":false,"footnotes":""},"categories":[394],"tags":[],"dipi_cpt_category":[],"acf":[],"_links":{"self":[{"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/posts\/15387"}],"collection":[{"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/comments?post=15387"}],"version-history":[{"count":0,"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/posts\/15387\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/media\/15388"}],"wp:attachment":[{"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/media?parent=15387"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/categories?post=15387"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/tags?post=15387"},{"taxonomy":"dipi_cpt_category","embeddable":true,"href":"https:\/\/flippa.com\/blog\/wp-json\/wp\/v2\/dipi_cpt_category?post=15387"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}