Distressed 9 year old Amazon FBA business that's made $54M since 2019!
Asking Price: | $4,500,000 |
Inventory: | $1,200,001 |
Gross Revenue: | $12,545,989 |
Established Year: | 2013 |
Asking Price: 4.5M USD
Business Age: 9 Years
Niche: 'Timeless' Consumer Lighting Systems (for indoor and outdoor)
Monetization: Amazon FBA (multiple countries), Walmart, etc.
Business Model: Buy (and customize) inventory from supplier factory, ship direct to target country (into Amazon warehouse), and let Amazon sell and ship direct to customer (after they make payment).
Operations: Team of 10 people and owner run the business in collaboration with Supplier (manufacturing) and Amazon (distribution)
2022 Users/Buyers: 352,499 USD
Net 2022 Sales: 12,545,989 USD
2022 Earnings (SDE): 1,205,622 USD
The Opportunity
This is a FIH.com offering for 2 interconnected highly rated Amazon FBA businesses that sell consumer lighting products/decor for multiple segments. The first business was founded in 2013 while the 2nd was founded in 2015 and they are both owned and operated by the same person. They boast over 13M in sales but are currently unprofitable with over 1M in losses for this year and some debt attached. This is a great opportunity for a turn around to take over the businesses and restore them to their historically super profitable status.
General Highlights
2 highly aged (2013 + 2015 founded) and diversified (many selections of products) being offered
Both rated brands (most products have 4.6/5 or better) included in competitive niche (the brands dominate their niche)
Business did almost 13M in sales in 2022 and has a very profitable past (although not currently)
Tremendous asset value in terms of business history, customer trust, and 1.2M in inventory make it a strong acquisition target.
If new owner converts business to mere 20% profit margin on sales, the multiple of the business would only be priced at 1.77X profit
Customer Base
The customer base for the products represents in general the typical customer on Amazon, looking for high quality quick-arriving goods that have a flexible return policy and have high amounts of ratings.
In general, the average price of products being sold in the 2013 founded FBA is $36,86 for 2022 and the 2015 FBA had a average sale price of $35.97.This shows the price range of the product is very middle of the road = not too expensive and not too cheap so good for both sides of the demand chain potentially.
Traffic
The 2015 founded FBA business had 2,391,353 pageviews on their products on Amazon in 2022, resulting in over 155,114 product sales.
The 2013 founded FBA business had 2,781,299 pageviews on their products on Amazon in 2022, resulting in over 192,595 product sales.
To get a product by product overview of traffic, please refer to attached financials.
SKU Analysis
The business currently has 20 main SKUs but less than 250 products that it sells (many are inactive).
As per the financials, 2015 founded FBA business currently has 165 SKUs but 25 SKUs of those SKUs produce 82% of the revenue so the rest of them are not necessarily as needed.
As per financials, the 2013 founded FBA business currently has 255 SKUs but 25 SKUs of those SKUs produce 81% of the revenue so the rest of them are not necessarily as needed.
Here are some historical financials for each business:
Sales (USD)
For 2013 FBA store:
2019 Total: $4,321,363
2020 Total: $10,836,435
2021 Total: $10,100,403
2022 Total: $7,110,665
For 2015 FBA store:
2019 Total: $2,086,606
2020 Total: $6,641,630
2021 Total: $8,107,730
2022 - $5,597,770
Profit (USD)
For 2013 FBA store:
2019 Total: 740,228
2020 Total: $2,100,518
2021 Total: $629,008
2022 Total: - $617,917
For 2015 FBA store:
2019 Total: $385,585
2020 Total: $1,395,488
2021 Total: $332,390
2022 - $614,524
___________________________
About the Agent
FIH.com is a Manhattan-based M&A advisory firm specializing in the sale of SaaS, eCommerce, & Digital Media companies from $1M-100M. See more at FIH.com