Emanuel Ruiz explains how to buy existing Amazon FBA private label businesses instead of building from scratch. He covers brokerages like Empire Flippers and Flippa, how to verify seller claims with Sellerboard, and financing options including seller financing and SBA loans requiring 10-20% down.
Yeah, there are hundreds if not thousands of private label businesses that are currently up for sale right now. And based on my position now, I would never start a business on Amazon FBA from scratch. And the reason why I say that is because it is easier to spot inefficiencies of other businesses and scale that way than it is to risk all this money and time up front with a product that you think might be good but ends up going ahead and failing. I have failed so many times with coming out with brands and products from scratch that I don't even wanna go ahead and touch that anymore. But like I said, it's easier to spot inefficiencies. Once a business is generating income, revenue, have all the ad, all the data on Amazon, it's very easy to go ahead and pull a few levers and start scaling that actual business, right? But obviously there's different criteria that I'd go ahead and look for. Again, there's sites like Empire Flippers, Flippa, Quiet Life. There's all these brokerages, but it's still up to you to verify that all the numbers are legit. I use Empire Flippers because I've used them multiple times and I trust their software. But you can also use this software called Sellerboard that pulls in all the expenses that are coming from Amazon, because anybody can go ahead and put a P&L sheet or a balance sheet together and say that's how much they make, but it's up to you to actually verify. So Sellerboard goes ahead and does that. Then another hurdle is that sometimes obviously we don't have the money up front. Let's say somebody's gonna go ahead and sell their business for $200,000. You might not have $200,000 to go ahead and purchase that Amazon FBA business. Plus on top of that, you need to purchase their inventory and maybe order more inventory. So you can see you need a lot more than $200,000. There's different ways around that. Number one, seller financing. So based on how motivated a seller is to go ahead and sell their business, they'll be able to offer you seller financing. So you pay half upfront or whatever terms you might go ahead and agree with. And as you're fixing those inefficiencies, you're able to go ahead and pay that seller back, right? Whether that be, you know, quarterly, monthly, yearly, however long it might go ahead and take. You can go ahead and get all the way up to 10 years of seller financing if they go ahead and allow it, right? Um, they can go ahead and accept this because of tax purposes, whatever it might be, right? They go ahead and do that. But let's say they don't. You can get outside capital, right? Like outside investors to come and invest into these actual businesses. Right now I do have one investor. I have other investors basically wanting to invest money. Right now I just have a scaling problem, right? Like I'm only one person that can go out and scale. Once I figure out these logistics when it comes to scaling these Amazon FBA businesses and, you know, I put the right people in place, sky's the limit from there. And then the third option is SBA funding. Right? So if they do have 3 years of tax returns, you can submit that to the SBA and they can go ahead and just underwrite it. And if everything checks off, you can literally walk into a business with as little as 10 to 20% down with SBA funding, right? So there's different ways to do it, but I would never start from scratch. But again, that's the luxury that I'm at right now.
