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Summary

Price: 295.000 €

Inventory not included

ø Monthly Revenue*82.496,95 €
ø Monthly Expenses*69.948,08 €
ø Monthly Net Profit*: 12.548,87 €
Established: May 2014

General information

For sale is an Amazon FBA business with an annual revenue of around 1,000,000.00 EUR and a profit of around 150,000.00 EUR in the last 12 months. The company was founded 4 years ago and specializes in selling fashion for young women. With an inventory consisting of 5,000 parent ASINs in the apparel and accessories sector, the buyer will acquire a fully established brand which focuses on high-quality products at affordable prices.

The company holds rights to several trademarks (all registered in Germany and the EU) and patented designs.

The seller creates a sense of loyalty by using elaborate product packaging, leaflets and stickers and on-brand language in all emails. Because the brand is so well known, customers specifically search for it on Amazon and newly listed products gain an excellent ranking in no time. The Seller Account on Amazon has more than 18,000 seller reviews and about 10,000 product reviews.

The company generated their first sales on eBay but switched to Amazon once they realized the immense potential of the marketplace. Amazon Germany is currently the main sales channel, but their eBay account has been reactivated and currently has around 10,000 reviews, as well as the top seller status

Marketing

In addition to word-of-mouth, the Seller’s advertising on social media is very successful and provides a large portion of their traffic. The Amazon pay-per-click program was used to generate traffic to new products and improve their rankings quickly. However, these campaigns could have much more potential though optimization.

Suppliers and logistics

The company has a stable and reliable 4-year relationship with their three main suppliers. Supplier credits, terms of payment and special agreements (such as exclusiveness) have always been granted.

However, the company is not dependent upon those suppliers alone. They have several alternative and backup suppliers as well. Due to the immense sales volume, all suppliers are motivated to continue the collaboration and grant the best discounts, even for small orders, and special conditions for top-seller products. This allows for a large competitive advantage, as well as guarantees a high-profit margin. Furthermore, the seller has long-lasting business relationships and contracts with logistic companies, such as DPD, which can be continued after purchase.

As a result of the continually increasing sales, the main warehouse was outsourced to an external fulfillment provider and only a small distribution center remains in-house. The whole shipping system is fully automated and can be used by the buyer.

The fulfillment provider offers the best conditions regarding shipping costs, storage fees and other expenses. All agreements are transferable to the buyer.

Further information

The business is automated to a large extent from the development and adaptation of a comprehensive software system. This allows the regular day-to-day business to happen without any manual work. The buyer is free to adopt this system or implement their own.

The company can be run by a single person since all work-intensive processes are outsourced to the fulfillment provider. However, two part-time employees currently cover product research and product packaging at the seller’s distribution center, since the founding team is no longer involved in the day-to-day business operations.

Sales History

MonthSalesUnits soldCostMarginContribution margin
June 2017113.906,34 €10.33780.144,14 €29,64%33.762,20 €
July 201728.812,13 €2.05226.225,88 €8,98%2.586,25 €
August 201738.478,27 €2.97631.429,18 €18,32%7.049,09 €
September 201740.130,89 €2.88933.636,48 €16,18%6.494,41 €
October 201738.740,14 €2.49833.473,03 €13,60%5.267,11 €
November 2017105.693,66 €5.76387.094,36 €17,60%18.599,30 €
December 2017333.722,97 €15.693290.599,78 €12,92%43.123,19 €
January 201888.953,94 €5.96790.459,00 €-1,69%-1.505,06 €
February 201867.511,29 €4.49856.735,95 €15,96%10.775,34 €
March 201856.223,29 €3.88946.879,87 €16,62%9.343,42 €
April 201843.385,43 €2.86838.977,11 €10,16%4.408,32 €
May 201845.746,87 €3.02136.369,23 €20,50%9.377,64 €
June 201853.714,75 €333442.255,14 €21,33%11.459,61 €
July 201877.661,91 €1366351.467,87 €33,73%26.194,04 €
 

Included in the purchase:

  •    Social media channels (Facebook and Instagram) with more than 20,000 fans
  •    An email list with about 18,000 subscribers
  •    Domain and website with a webshop
  •    Product pictures for all the products (Rights of Use will be transferred)
  •    Several trademarks and patented designs

 

Growth opportunities:

  •    Expansion to new Amazon marketplaces (PAN EU and North America)
  •    Growth of the online shop and potential for increased sales
  •    Expansion of the product range (to men’s fashion, etc.)
  •    Optimization of the PPC campaigns
  •    Relaunching on eBay with the already existing seller account
  •    Acquisition of new suppliers from China and Asia for new products at lower purchase prices

Reason for sale:

One of the founders has to leave Germany due to family reasons and his business partner is lacking the time to take care of the business due to his studies. Although they are disappointed they cannot continue, they have decided to sell the company.

Seller support:

The seller is willing to support the buyer during the first 1 to 3 months.

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