Deal Flow (Jan 25): 3 Amazon FBA & eCommerce, 8 Branded Domains

This week’s deals feature 3 businesses for sale from Empire Flippers and Quiet Light brokerages in the baking, fitness, and lifestyle niches.

For domains, we share findings on 3 aged SEO domains and 5 branded domains live at GoDaddy auctions.


3-Year-Old Amazon FBA Business in Baking Niche Making $4,973/mo on Empire Flippers

Summary

Niche: Baking

Source: Empire Flippers (see listing)

Profit: $4,973/mo from Amazon FBA

Asking Price: $213,858 at a 43X multiple using a 12-month average

Screenshots

Here is the Amazon FBA listing screenshot for one of the products (info redacted for privacy):

CleanShot 2023 01 24 at

Here is the Helium10 screenshot of the product value:

FBA Seller Overview

Growth Blueprint

Highlights

  • Strong year-over-year growth in overall revenue and net profit
  • Most of the products have a 4.5-star rating indicating high-quality products and high customer satisfaction
  • Commodity type product line may lead to competing on price in the future

Setbacks

  • Cost of Goods Sold (32.46% of revenue) is high leading to less net margin to invest in growth
  • Top-selling listings have less than 250 reviews which are low compared to the category average of 1,113 reviews
  • Undifferentiated products may lead to competition on price in the future if additional players enter the market

Easy Wins

  • Little to no Amazon advertising spend throughout the year. Implementing a proper advertising strategy could quickly increase revenue
  • Add a video to each listing going through the product features
  • Test new main images of each product to improve traffic to the listing

Takeaway

With only 6 core products and 13 SKUs in total, this business has built a small position in the baking niche.

While each listing is fairly optimized, there is the opportunity to add a product video to each listing to quickly improve conversion rates.

In the trailing twelve months, the seller has only spent 0.73% of revenue on Amazon advertising which indicates a big opportunity to increase advertising spending to grow overall revenue.

One point of concern is the low review counts of the listings which are not significant enough to deter new competition from entering the market.

Valuation:

This business has been valued at $213,858 at a 43x multiple over the last 12 months.

Although the business has shown strong year-over-year growth in revenue and net profit, the low review counts and overall size of the business do not warrant such a high multiple.

A more appropriate multiple would be in the 33-36x range which would result in a valuation of $179,028.


Aged Domain: SharkyDiveShop.com

Summary

Niche: Diving Equipment

Source: Odys Global (see listing here)

Age: 2000 (23 Years)

Listed Price: $3,050

Ahrefs

This domain has an existing domain rating (DR) of 10 indicating some authority. There are 354 backlinks linking to this website across 70 different domains. Some keywords are still ranking, which is a good sign. This domain can be repurposed to launch an eCommerce business.

Notable links: Jetsetter, Moon.com, SlightNorth.com, DiveAdvisor.com, Insider.com

sharky dive shop ahrefs

Site History

Since 2000, this domain was used by a dive shop in San Andreas, Columbia.

The site was live until 2021 according to Archive.org and has a Trip Advisor page with 176 reviews.

Here’s what the site looked like:

sharky dive shop archive 1

Growth Blueprint

With its history as a former dive shop business, this domain is a good fit to be relaunched as an eCommerce website or FBA brand that sells diving equipment like scuba masks, wetsuits, dive watches, underwater cameras, and other scuba gear.

Here’s what I would do:

  1. Launch an eCommerce store featuring the most popular diving equipment categories on the homepage
  2. Feature popular brands on the homepage to increase trustworthiness
  3. Add a “Featured on” section on the homepage with Insider, Moon.com, Trip Advisor, etc.
  4. Hire diving experts to write guides about choosing the right scuba and snorkeling equipment

Full-line manufacturers of scuba equipment like Promate and XS Scuba accept applications to become authorized dealers. You can also find brands to work with on a dropshipping directory like Worldwide Brands or contact manufacturers individually to become a seller.


🚀 Other Businesses For Sale

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

$12.6K/mo Health & Fitness Shopify and Amazon FBA Business – Valuated at $491,560 at a 39X multiple. 2-year-old Shopify and Amazon FBA business with $39K monthly revenue. It sells trademarked light therapy products supplied from China to a 3PL warehouse in the US with 21 SKUs. Seller will offer R&D on new product planned to launch towards the end of the year. View on Empire Flippers

$3.6K/mo Lifestyle FBA and Ecommerce Patented Brand (price reduced by 19%): $90,000 valuation at a 25X multiple. 4-year-old Shopify, FBA, and Wholesale business with $99K annual revenue and $42K annual profit. Hero product with profit margins of 88% and more than 500 positive ratings on Amazon. Comes with a sizeable inventory. View on Quiet Light


🚀 Aged & Brandable Domains

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

Aged domains currently bidding from $205 to $360 at the time of writing.

  1. NourishSnacks.com: The domain for a healthy snack e-commerce site started in 2014. It has a domain rating of 43 and ranks for 2 keywords in the top 100 positions with backlinks from NYTimes, Inc, HuffPost and NBCNews.
  2. BanyanBay.com: The site for a Caribbean resort, first registered in 1998 with a DR of 23 and ranking for 346 KWs. Backlinks from TravelChannel, Newsweek and Yahoo.

Branded domains bidding from $27 to $305 at the time of writing.

  1. FlexBuild.com
  2. SolarOutfitters.com
  3. Xpreso.com
  4. HappyCrafting.com
  5. HobbyStreet.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 products 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!