80 - How to Acquire & Grow an FBA Business
If you're drawn to e-commerce businesses as I am, this episode is a must.
Alex Michael acquired Wallaroo, an FBA business, a few months ago.
Pretty much a single-SKU business that sells a wallet product via Amazon.
Last year it did about $650,000 in sales, $180,000 SDE, and is a leader in its category.
This interview is a fantastic primer on how a business like this works.
We get into:
a full cost breakdown
supply chain management and risks
platform risk, which of course is high with FBA businesses
how to get eyeballs on your product within the very crowded Amazon marketplace
and of course how to grow
Also, I loved the part where Alex discusses how he won the deal.
There are lots of buyers out there for e-commerce businesses, and well-funded buyers.
So how did Alex, a first-time acquisition entrepreneur with a day job, convince the owners to sell to him?
You're going to learn a ton about FBA businesses in this conversation with Alex Michael.
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