This week’s deals feature 2 businesses for sale from Empire Flippers in the Home Tools Organization and Art and Home Decor niches.
For domains, we share findings on 4 aged SEO domains and 6 branded domains live at GoDaddy auctions.
5-Year-Old Home Tools & Organization Amazon FBA Business making $6,261/mo on Empire Flippers
Summary
Niche: Home and Equipment
Source: Empire Flippers (see listing)
Profit: $6,261/mo from Amazon FBA
Asking Price: $256,692 at a 41X multiple using a 12-month average
Screenshots
Here is the Helium10 screenshot for the products offered. The business offers 7 different products all in the same niche.
Here is the screenshot of the broader niche showing most of the top competitors.
Growth Blueprint
Highlights
- Well diversified revenue among the top products. Top selling product only accounts for approximately 33% of overall revenue
- Competitive review structure among broader niche – 1800+ reviews in comparison to 1,000 on average
- Able to maintain slightly higher price point than competitors
Setbacks
- COGS is high at 31%
- Declining revenue and net profit year over year
Easy Wins
- Listing optimization – current images and Listing SEO is outdated and could be easily updated to improve click through and conversion
- Introduce additional bundles and variations of current product lineup
- Use coupons, Lightning Deals, and 7 Day deals to boost overall revenue and rankings
Takeaway
This Amazon FBA brand has a small presence in the home tools and organization niche. Each of the products is strong individually and have maintained higher price points than competitors in a category that has strong competition and many similar looking products.
More work could be done to the listing images to showcase the differentiation between competitors and better portray the brand. One major drawback of the business currently is the declining revenue and net profit year over year. An enterprising buyer would need to improve conversion rates of the listings and increase organic rankings to reverse this trend and get revenue growing again.
There is also the potential opportunity to reduce COGS through enlisting a sourcing agent. Although this is a long term play ( 3 – 6 months), reducing COGS from 31% down to 25% would be a significant boost to the bottom line.
Aged Domain: FreedomSurfShop.com
Summary
Niche: Surfing
Source: SerpDomains (see listing here)
Age: 2004 (19 Years)
Listed Price: $749
Ahrefs
Notable links: TechCrunch, VABeach.com, VirginiaLiving.com, RandSurf.com, Wikipedia (nofollow)
Site History
This domain was used for the eCommerce site for a surf shop with a retail location in Virginia Beach. The store had a showroom with “over 150 surfboards for sale at any time”.
The website featured a large selection of surfboards from leading brands as well as their own branded clothing. The store closed down in 2021.
Here’s what the site looked like:
Growth Blueprint
With its history of selling surfing gear and a highly brandable name, this domain is an excellent fit for relaunching a surfing eCommerce site.
Here’s what I would do:
- Relaunch the eCommerce website with a similar homepage layout as the original site with navigation links to surfboards, freedom gear, team, and blog
- Add trust signals like featuring well-known brands such as Firewire and Lost Surfboards, customer service phone number, and photos of team members
- Hire surfing experts to write articles about choosing the right surfboard and tips for beginners
- Find products to white label under the Freedom Surf brand that can be sold on the site and on Amazon (check trademark to make sure its safe to use)
You could work directly with individual brands and wholesalers to drop ship surfboards, paddleboards, surfing accessories, and clothing. Alibaba features many generic surfing products that can be white-labeled or drop shipped.
🚀 Other Businesses For Sale
$11.5K/mo Art, Home, and Design FBA Brand (reduced by $73,344) – New valuation at $401,333 at a 35X multiple. 4-year-old FBA business with $74K monthly revenue. Increasing revenue and net profit over the trailing twelve months. Multiple employees allow for hands off operation. View on Empire Flippers
$1.6K/mo Tire Valve Stem FBA Brand (multiple reduced): $59,000 valuation at a 36X multiple. 6-year-old FBA business with $70K annual revenue and $19.7K annual profit. Only 3 SKUs so a good platform to build a bigger FBA brand off of – or combine with another existing FBA brand. View on Latonas
🚀 Aged & Brandable Domains
Aged domains currently bidding from $104 to $405 at the time of writing.
- LegendSolar.com: Was a Utah solar power installer starting in 2015. The domain has a DR of 13 ranks for 3 keywords in the top 100 positions. Backlinks from Forbes, BusinessWire and HuffPost.
- SellingBooks.com: Started in 2006, this was a site giving advice to aspiring authors/self publishers with a DR of 33. It is not currently ranking for any keywords but has backlinks from Inc, TED, and Stanford.
- NailZone.com: An e-commerce site selling nail guns and compressors starting in 2000 with a DR of 6 and ranking for 2 KWs. Backlinks from YP, LivingSocial and FineHomebuilding.
Branded domains bidding from $40 to $355 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
