Reply
by a searcher
from Massachusetts Institute of Technology
in New York, NY, USA
I think I saw that deal on a brokerage website. What I think is good about it is that it's a fully remote operation, has upside from better management. What made me pause was the highly cyclical nature (which means you'll need a bunch of working capital to grow - your supply chain lead time will be in the 2+ months) and Amazon is a platform that is less forgiving than others - so improving your rankings, keeping reviews strong etc. will require a lot of attention. Overall I'd say make sure that your purchase multiple will compensate you for those risks!
Reply
by a searcher
from Northwestern University
in Indianapolis, IN, USA
I recently looked at a business that was generating 95%+ of their revenue through Amazon and ultimately didn't pursue due to 1) low barriers to entry and concerns this would lead to competing on price, 2) ability to sustain consumer interest / preferences, 3) beholden to Amazon's changing fee structure.
If I was able to get comfortable with the business dynamics, I thought this would follow a similar due diligence process. Curious if others have different perspectives / insights.
from Massachusetts Institute of Technology in New York, NY, USA
from Northwestern University in Indianapolis, IN, USA
If I was able to get comfortable with the business dynamics, I thought this would follow a similar due diligence process. Curious if others have different perspectives / insights.