* SALE PENDING * Illness Forces Sale of Profitable Amazon FBA Business
Turnkey operation in east central Florida. Low overheads.
not included in asking price
included in asking price
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Illness and age force the sale of this profitable Amazon FBA business in east central Florida. Business has been operating profitably for 8 years, and will net $170K+ this year, on sales of over $1.8 million of products that we are still stocking.
The company has over 42,000 lifetime seller feedback reviews on Amazon (despite NEVER soliciting for them), with a 100% Positive rating.
Business sells nutritional supplements from brands in the natural supplement industry. Due to the present environment in the industry, business needs to be operated from present location in east central (coastal) Florida. There are worse places to live!
Business can easily be run by 1 to 2 people. Just 5 days a week to receive merchandise at our small location, prepare the product for the Amazon FBA warehouse, then pack and ship it in bulk to Amazon. Actual physical work is a few hours per day at most. The rest of day is for duties such as emailing orders to suppliers, printing product stickers, printing shipping manifests, and searching new product possibilities. UPS usually picks up the boxes by 3:00 or 3:30, so no late days, and only Monday through Friday.
The value of inventory obviously changes daily, and is not included in the purchase price. It will be transferred to the buyer at closing at exact cost. All inventory is well dated and fresh. We keep track of all shipments, and should the need arise, we clear out products well before the expiration date becomes an issue. Product mix always changes somewhat over time depending on factors such as which products are selling more rapidly, product pricing and margins, expansion or deletion of product lines, etc. Current inventory is generally in the $100K to $135K range at cost.
The business is currently run by 2 partners. Over the past year or two, we made a conscious effort to streamline and reduce our workload due to our physical limitations, as one of us had major surgery, and the other is past retirement age. So, products that required extra preparation were discontinued. while at the the same time, some suppliers decided that they did not want 3rd parties from selling on Amazon. Although overall sales for 2018 will be around $2.6 million, we prefer to state that they will be $1.8 million, which represents the sales of those products and lines that we have NOT discontinued, and continue to sell, and the net income shown of $170K represents the net income only of those items (actual net income will be around $200K). We prefer to be up front and transparent about what has gone on.
Although all sales are made through Amazon FBA, we do have a website as well, however at present it simply points to our storefront on Amazon. A motivated individual could develop it into something better.
Sales taxes are critical today, as due to a recent court win, states will be aggressively going after online sellers who have not been collecting and remitting sales taxes in their states. Generally, if inventory is in an Amazon warehouse in that state, they want sales taxes collected. We are fully compliant, and collect in approximately 18 states, although Amazon now collects and remits in some of those, with no work on our part. For the others, we have developed an Excel template that captures all the data to make it easier to fill out the state sales tax forms without the use of an outside agency.
Although fine as is, a very motivated individual has many opportunities for expansion. For example, we have permissions from 2 suppliers to sell on 3rd party platforms so long as we self-ship the products. We have not done so due to our physical conditions, but that is a huge market to develop. We also have a private label brand of supplements, but frankly we have not devoted any time or effort to promote it; but all label artwork is set up. Also, we get regular solicitation from Amazon to expand to international markets such as Europe and Canada, a
About the Business
Contact the Seller
- Year Established:
- Number of Employees:
-Existing location is rented, approximately 480 square feet, along with a storage unit for boxes, bubble, etc. List of FF&E can be supplied, but contains work tables, computer, 3 laser printers, necessary equipment for packing and shipping (label guns, tape dispensers, packing tape, assorted boxes, etc.), file cabinet, printer paper, printing labels, etc.
- Transfer of Amazon Seller Account
- 3 website domains (includes 1 for physical location, and 1 for private label brand, but these need tweaking).
Growth & Expansion:
- Expand private label
- Resume sales of brands that we have discontinued
- Resume sales of products with greater preparation (such as 2-packs of products which need to be in poly bag, or products required to be in bubble bags.
- Look at possible expansion globally.
- Add self-fulfillment of products, for which we have restricted permission from 2 major companies to do.
About the Sale
- Reason For Selling:
Presently run by 2 people- 1 post-retirement age; other had major surgery
- We have printed SOP (Standard Operating Procedures) for most of the day to day functions, such as how to use our Excel template to determine ordering, pulling Amazon reports, using data to track inventory, etc.
We will supply at least one of us to stay with buyer for 2 weeks, with telephone support after that.
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