This week’s deals feature 3 Amazon FBA businesses for sale from Empire Flippers in the Sports, Home & Kitchenware, and Pool niches.
For domains, we share findings on 5 aged SEO domains and 8 branded domains live at GoDaddy auctions.
6-Year-Old Amazon FBA Business in the Sports Niche Making $10,566/mo
Source: Empire Flippers (see listing)
Profit: $10,566/mo from Amazon FBA
Asking Price: $486,035 at a 46X multiple using a 12-month average
Here is a Helium10 screenshot showing some of the key characteristics including the revenue distribution, category, and review counts of the top listings.
Note that Helium10 cannot estimate revenue for products in the “Unique Finds” category so the revenue stated here is likely underestimated.
Here is one of the Amazon listings with identifying info redacted for privacy.
- Unique product with IP protection (US patent pending) and strong differentiation from competitors
- Strong review structure with 4.4 average rating and 3,600+ reviews on the top product
- High net margin of 25% leaves plenty of room to invest more in ads/growth for the future
- Advertising spend is high accounting for 15% of overall revenue.
- Majority of revenue comes from the top product and its variations
- There is strong seasonality in the business
- Improve listing SEO to improve organic ranking and increase traffic to the listing
- Launch products on Walmart
- Reduce advertising spending to improve profitability further
This Amazon FBA business features a strongly differentiated product line that has won industry awards in its niche. The differentiation and strong review structure is rare among Amazon FBA brands and provides strong evidence that this brand will continue on a good growth trajectory.
Based on past experience, improving the listing SEO through adding additional high traffic keywords to the title and bullet points represents an opportunity to grow revenue by between 10 – 20%.
Combined with the opportunity to reduce advertising spend to a more standard 10% of revenue (currently 15%) which would improve net margins further, this is an attractive FBA business for an investor.
Aged Domain: NewCidCosmetics.com
Source: Serp Domains (see listing here)
Age: 2008 (15 Years)
Listed Price: $1,849
Notable links: The Guardian, Cosmopolitan, CosmeticsBusiness.com, PremiumBeautyNews.com, NailPro.com, Good Housekeeping (nofollow)
This domain was used for a cosmetic product company founded in 2005 in London. They sold their own beauty products including eyebrow grooming sets, eye shadow, and eyeliner.
The search traffic reached a peak of 11K visitors in April 2017 according to AHREFs and the site was still active until 2020 according to Archive.org.
The brand had a strong social media presence with 7K followers on both Instagram and Facebook.
Here’s what the site looked like:
Here’s a screenshot of their Instagram:
With a strong backlink profile with many beauty-related links, this domain provides a good opportunity to build an eCommerce store selling beauty products.
Here’s what I would do:
- Launch an eCommerce store with homepage navigation links to similar categories as the original site
- Recreate a homepage with a similar layout as the original site with sections about popular products, social media, and media coverage
- Leverage the strong domain authority by publishing content on relevant beauty topics
- Partner with beauty bloggers and social media influencers to send traffic to your eCommerce landing pages
There are several cosmetic companies that offer dropshipping for eCommerce stores (e.g., ISO Beauty, Beautyjoint). You can also work with a private label company to develop your own line of beauty products that can be sold on your site or through Amazon.
🚀 Other Businesses For Sale
$8.9k/mo Home, Kitchenware, and Bath Amazon FBA Brand(reduced by $31,103) – New valuation at $375,389 at a 42X multiple. 4-year-old FBA business with $66K monthly revenue. 65 SKUs in the home organization niche. There is 1 employee in the business so there may be an opportunity to delegate responsibilities and operate this business passively. View on Empire Flippers
$4.8K/mo Upscale Pool Access FBA Brand (listed 2 months ago): $179,000 valuation at a 37X multiple. 5-year-old FBA business with $258K annual revenue and $58K annual profit. Only 12 SKUs with the top 3 accounting for 50% of overall revenue. Opportunity to negotiate on price given the time on market. View on Quiet Light
🚀 Aged & Brandable Domains
Aged domains currently bidding from $358 to $1,368 at the time of writing.
- ItalTrade.com: Started in 1998, this was the site belonging to the Italian Institute for Foreign Trade with a DR of 62. Ranking for 3 KWs with backlinks from Bloomberg, Wikipedia and MIT.
- PrepAvenue.com: Was a personal lifestyle blog started in 2014. It has a DR of 50 is ranking for 292 KWs and has backlinks from Pinterest, Buzzfeed and WikiHow.
- BusyBody.com: Was a home fitness equipment e-commerce site started in 1999. It has a DR of 5 and is ranking for 7 KW with backlinks from Crossfit and Bodybuilding.
- EmeraldSquare.com: The site for a mall in Massachusetts since 2001 with a DR of 6 and ranking for 542 KWs. Backlinks from Wikipedia and TripAdvisor.
Branded domains bidding from $25 to $459 at the time of writing.
👉 Additional Resources
Make sure to perform detailed research and due diligence when acquiring any eCommerce businesses.
Such businesses have many moving pieces. You should “practice” your due diligence skills by analyzing the listings we provide in this newsletter.
Keep these in mind:
- Understand the ins and outs of the business model (eCom, Amazon FBA, etc)
- Before you buy, you should build from scratch a business (ideally)
- Understand how to read a P&L statement
- Understand the metrics in Amazon Seller Central
- Understand the logistics of ordering product overseas