Started in 2011, this Amazon FBA business sells high-quality clip-on jewelry with 80% product margins. The seller does not have a fashion background, and he can train the new owner on how he discovers new products to sell through a data-driven approach.
In the trailing 12 months, revenue is $509K and SDE is $101K. The top five SKUs account for 39% of revenue, while the top-selling SKU is only 13% of revenue.
In the last 90 days, ACOS (advertising cost of sales) was 40% with TACOS (total advertising cost of sales) at 16%, which is not uncommon in jewelry categories. The top listing has over 3,000 reviews, and the brand has over 6,000 reviews across its SKUs.
The biggest growth opportunities are launching pierced-earring styles, whose market size is significantly larger than clip-on jewelry, and expanding the current clip-on earring offerings.
The business operates around 150 SKUs at a time, which requires small space requirements. The owner ships products to the US by air and has an IPI score of over 800. Total storage fees are around $.01 per unit per month. The small products require less inventory on hand, allowing for reduced capital expenditures.
The products do require a small aftermarket adjustment that is simple to do and easy to learn or teach. The current owner works 10 hours per week on the business and will provide full training and support. He has no passion for the industry and is looking to start something more in line with his background with a marketing agency.
**This business is not SBA financeable.
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Ryan Condie has started 8 businesses, bought 4, and sold 2. He owns a lead generation software company, an FBA business, and is the host of the “Let’s Buy a Business” podcast.
In 2014, he started a candy factory from scratch which can now be found in Sam’s Club, Walgreens, and thousands of other stores.
Ryan also spent 8 years in software sales at several tech unicorns but his passion lies with online businesses and helping sellers achieve life-changing events through their business exits.
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