Anyone have experience with FBA? or Children's Toy Kits?

April 30, 2025

by a searcher from Duke University - The Fuqua School of Business in San Francisco, CA, USA

Hi all, I'm looking at an opportunity in the FBA space. Does anyone have experience working with Amazon in this arena? Similarly, have you looked at any businesses in the children's toys? I'd love to connect and hear more about your experience. My major concerns are being dependent on Amazon for sales and growth, inventory forecasting, and seasonality. Please reach out if you worked in this space before. Thanks.

Reply by an investor
in Asheville, NC, USA

I own some FBA businesses in my HoldCo, and I founded what was (then) one of the largest FBA seller tools. I only say this to support my warning: Be extra extra careful when buying FBA businesses! They are okay to start from scratch, but they may not be the best assets to buy (at CapitalPad, we’ve said no to every FBA-model deal). Obviously there is one big point of failure (i.e. customer concentration), margins are continually squeezed, and they are far more complicated to run than you’d think. Personally, I’d never even look at it if I didn’t already have solid FBA experience.

Reply by a searcher
from University of California, Berkeley in Oakland, CA, USA

I used to manage buying for Walmart.com’s toy department. Feel free to reach out if you have questions.

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