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):
Here is the Helium10 screenshot of the product value:
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.
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
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:
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:
- Launch an eCommerce store featuring the most popular diving equipment categories on the homepage
- Feature popular brands on the homepage to increase trustworthiness
- Add a “Featured on” section on the homepage with Insider, Moon.com, Trip Advisor, etc.
- 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
$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
Aged domains currently bidding from $205 to $360 at the time of writing.
- 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.
- 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.
👉 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
