Back to Listings Listing #44634: General

Asking Price : $110,434

Annual Gross Revenue : $623,782

Annual Net Profit : $50,970

Profit Multiple : x2.17

Inventory Value: -

R-Index : 163

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From the Broker

This listing is for an Amazon FBA business created in December 2014 in the general niche. The included Amazon Seller Central account sells over 400 products as retail arbitrage. The business utilizes a repricing software to make sure the prices are competitive and has a few employees who make the process go smoothly. Though business has declined in 2018 due to lack of focus, the brand is ungated for most categories and apparel brands as well, which gives an edge over those starting new.

The inventory is currently received daily by the Seller and prepped for shipment to Amazon by two in-house employees. The buyer has two options, to continue using the Seller for this part of the process for a fee of $2/item, or the processing of merchandise can easily be outsourced to a 3P company. A large percentage of arbitrage customers do have their merchandise shipped to prep centers. Since the Seller's roots are in selling private label eBay and Amazon, they already had the infrastructure and fixed overhead so they decided to prep their own goods.

The Seller currently spends around 15 hours a week working on the business. The Seller has a software that helps find items to buy as well as lists that the Seller subscribes to. Some of these subscription lists are closed to new people, so the Buyer would get the benefit of being grandfathered in. The amount of merchandise that is bought has a direct relationship to the number of sales, that is, the more you buy, the higher the sales. This can be expedited by having a VA focus on finding more items and increasing the volume of the items that are bought.

*We've decided to use a 5-month average of net profit for the valuation because we felt that a 12-month average did not accurately represent the current state of the business.

Site Highlights

Average Monthly Revenue: $51,982

Average Monthly Expenses: $47,734

Average Monthly Net Profit: $4,247

* We are using the last 8 months to determine the averages.

Assets Included in Sale

Included in the sale of this business are:

  • Amazon Seller Central account
  • Subscriptions to ‘Buy Lists’ that are closed to new buyers

*Inventory is not normally included in the list price, further details can be provided to active depositors.

Work/Skills Required

The Seller currently spends around 15 hours per week:

  • Evaluating lists of items to buy. This is done by checking the metrics through software and deciding if the item fits into the buying strategy.
  • Making sure everything is sent to FBA inventory.
  • Using a repricer software the make sure our prices are competitive.
  • Checking the repricer stock and checking the items that are listed to make sure that they are priced correctly.
  • Cross-referencing with the Amazon aging report. This business’s model is focused on turning merchandise over quickly.
  • The Seller has a VA that reconciles FBA inventory with shipments. If there are any losses or damages, the Seller files a report for reimbursement.
  • A small percentage of merchandise gets returned to the Seller periodically from Amazon FBA that is not sellable. The Seller files cases for these and get reimbursed.

Reason for Sale

The Seller would like to focus on their private label business.

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Listed By

Sale Pending: No

First Seen: Tue, Jun 12th 2018

Last Updated: Tue, Nov 13th 2018

Rhodium Weekend 2015
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