Deal Flow (Feb 22): 3 Amazon FBA, 4 Aged and 6 Branded Domains

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.

image 31

Here is the screenshot of the broader niche showing most of the top competitors.

image 32

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  • Listing optimization – current images and Listing SEO is outdated and could be easily updated to improve click through and conversion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.

Valuation:

This business is valued at $256,692 at a 41x multiple over the last 12 months.

Although the business has strong reviews, the declining revenue and net profit will bring down the valuation. A more appropriate valuation would be in the 33x range.

That would indicate a valuation close to $206,613. Buyers could offer an upfront payment at the 33x multiple with an earnout depending on 2023 vs 2022 performance.


Aged Domain: FreedomSurfShop.com

Summary

Niche: Surfing

Source: SerpDomains (see listing here)

Age: 2004 (19 Years)

Listed Price: $749

Ahrefs

freedom surf shop 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:

freedom surf shop archive
freedom surf shop archive2

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:

  1. Relaunch the eCommerce website with a similar homepage layout as the original site with navigation links to surfboards, freedom gear, team, and blog
  2. Add trust signals like featuring well-known brands such as Firewire and Lost Surfboards, customer service phone number, and photos of team members
  3. Hire surfing experts to write articles about choosing the right surfboard and tips for beginners
  4. 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

We cover businesses for sale that are new, aged, or undervalued.

$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

You can repurpose aged domains with an existing SEO profile to build an eCommerce business.

Aged domains currently bidding from $104 to $405 at the time of writing.

  1. 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.
  2. 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.
  3. 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.

  1. MassageGuns.com
  2. WakeyWakey.com
  3. PartyDepot.com
  4. FunGear.com
  5. DiveBoat.com
  6. FlamezGrill.com


👉 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


Analyzed by Jon Elder

Jon has sold over $10 million in sales on Amazon since 2014 and exited 5 Amazon brands for millions. He now helps Amazon sellers experience the same level of success through 1:1 coaching. He is happily married with two kids in Texas!