Dive into the compelling world of an Amazon FBA shower filter business raking in $10M revenue with a smart recurring revenue model. The discussion hinges on the looming impact of Chinese tariffs that could derail the deal. Financial complexities unfold, from SBA lending changes to navigating unpredictable market trends and supply chain fears. Explore innovative financing strategies and the unique challenges of establishing domestic manufacturing in a fluctuating economic landscape. It's a deep dive into both exciting opportunities and hidden risks!
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insights INSIGHT
Strong Recurring Revenue Model
This Amazon FBA shower filter business has $10M revenue and $2.5M EBITDA with 40-50% recurring cartridge sales.
Its steady month-to-month sales reflect consistent demand from a large, niche market with scientifically validated products.
volunteer_activism ADVICE
Diligence 3PL and Carve-Out Risks
Buyers should thoroughly diligence 3PL logistics and adjust EBITDA expectations if current operations rely on the seller's own facility.
Clarify if the business is a carve-out, as shared services complicate financial separation and impact SBA financing.
insights INSIGHT
Always Underwrite with a Margin of Safety
Buyers must build a buffer in valuation for unknown risks and liabilities during acquisition.
Even with deep diligence, unforeseen issues such as hidden debts or lost customers after closing occur regularly.
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This Amazon FBA shower filter business has $10M in revenue, $2.5M in EBITDA, and up to 50% recurring revenue—but will Chinese tariffs kill the deal?
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In this episode, Heather and Bill break down a $10M revenue Amazon FBA business selling vitamin-infused, multi-stage shower filters with a strong 40–50% recurring revenue from cartridge replacements. But there's a catch—its supply chain is deeply tied to China, and new tariff policies may render the business nearly untransactable. The hosts explore what makes the brand compelling, how SBA financing applies (even with a potential carve-out), and the real-world impact of uncertain global trade conditions on e-commerce sellers today. They also dive into new SBA SOP updates and creative (and sometimes sketchy) ways sellers are dodging tariffs.
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