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Amazon FBA Business for Sale: Supplements Generating $1M Annual Profit
Nov 19, 2024
Dive into the fascinating world of Amazon FBA with a focus on a health and wellness supplements business generating over $1M in annual profit while working just 15 hours a week. Explore the risks of heavy Amazon dependency and revenue concentration, particularly with one SKU delivering 80% of sales. Discover exciting growth opportunities, including retail expansion and potential sales in other markets. Learn about the unique challenges buyers face, such as navigating financing hurdles and transitioning a brand off Amazon.
33:24
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Quick takeaways
- High concentration on Amazon for 96% of revenues presents significant risks that buyers must carefully evaluate and manage.
- Despite risks, there are substantial growth opportunities such as expanding product offerings and entering new retail markets like GNC.
Deep dives
Overview of the Supplement Business
The podcast discusses a supplement business operating primarily on Amazon, which has gained substantial value since its inception in 2016. With revenue exceeding $1 million and a solid net profit margin, it was built by a single owner working approximately 15 hours per week. This streamlined operation highlights the potential of e-commerce businesses that leverage platforms like Amazon to achieve impressive returns with minimal labor. However, the owner is considering selling the business to pursue other opportunities, raising questions about the business's stability and long-term prospects.
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