Acquisitions Anonymous - #1 for business buying, selling and operating Amazon FBA Supplements Business at 10x Multiple: Is It Worth It?
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Dec 27, 2024 
In this engaging discussion, Travis Jamison, a serial entrepreneur and founder of Capital Pad, shares his expertise in e-commerce and Amazon FBA. He analyzes a supplements business listed at a striking 10x multiple, revealing the risks and rewards of such acquisitions. Travis emphasizes the challenges in supply chain management and competition, while contrasting the appeal of investing in small businesses against volatile ventures. He also highlights strategies for establishing competitive advantages and the importance of operational efficiency in thriving within the marketplace.
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Competitive Niche
- This business competes in a difficult Amazon niche, supplements.
- The specific products, like magnesium, iron, and D3, are highly competitive, making it challenging to stand out.
Price Competition and Supply Chain
- Consider competing on price in the supplement market if manufacturing in China.
- Leverage Amazon Global Logistics for just-in-time supply chain management.
Lack of FDA Certification
- While the business uses Good Manufacturing Practices (GMP), it lacks FDA certification.
- This raises concerns about product quality and safety due to its Chinese manufacturing origin.