4-Year-Old Amazon Party Business | 33% Net Margins | 4.6-Star Average Review

  • REVENUE

    $224,851

  • INCOME

    $70,009

  • MULTIPLE

    2.4x

Asking Price: $168,000 + Inventory

Reading Time: 2 minutes

Started in 2020, this business sells customized party products on Amazon. The brand has carved out a niche market on Amazon with relatively few competitors. The business is differentiated through attention to detail on product quality, packaging, and customer service, resulting in over 600 reviews averaging 4.6 stars. This is a simple business that can be run part-time from home.

Sales are exclusively through Amazon and fulfilled by the seller (FBM). This unique fulfillment model allows for fast shipping on custom orders and serves as a barrier to entry, as overseas companies can’t compete on shipping times (important for timely events like birthdays). There are ample opportunities to grow the business including expanding the product line by adding more variations and other types of products. Another avenue for growth would be creating prepackaged products for popular phrases/occasions to sell through Amazon’s FBA program. This would come at a relatively low cost since inventory is already on hand. Furthermore, a buyer could expand sales channels such as building out a website for the brand, experimenting with other types of paid ads/social media marketing, or selling on Walmart.com (where there are currently no competitors).

The owners work 25–30 hours per week and want to start a new food business that would require more time and attention. They have streamlined daily processes and will train the buyer in all aspects of the business. Owner workload could be further automated by outsourcing or hiring someone to assist with packing and fulfillment. PPC is currently outsourced to a reliable contractor. While ad costs have increased over the last year, profits are still strong with 33% average net margins over the last 12 months; there is room to further outsource/automate and still generate a healthy return. This is a great starter business for someone looking to learn Amazon and generate a nice income stream while maintaining a flexible schedule.

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Meet Your Advisor

Elaine Eason

Elaine is passionate about entrepreneurship and has a track record of success in online business. She started her first profitable eCommerce business on Etsy in 2009 and has built 3 more businesses since, including a content site, an online subscription service, and a multi-million dollar eCommerce brand. She exited her most recent venture with Quiet Light brokering the deal.

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