I Bought an Amazon FBA Business Instead of Starting One (Full Breakdown)

I just purchased an Amazon FBA business, and I don't think this gets talked about much on the internet because people really don't know the process of buying and selling businesses, especially in Amazon FBA. So I want to create this video. I really don't have a game plan as far as what I'm going to go ahead and say, but I want to walk you around the process as far as why I purchased this actual business, why the seller is actually selling this business, and in totality what I'm going to do to grow this business out because this is my 4th purchase when it comes to buying an Amazon FBA business. And I've been in the trenches of Amazon FBA since 2018, and I've shifted my focus from starting from scratch, which I still do from time to time, especially helping new students on Amazon FBA. But now I've shifted my focus on buying Amazon FBA businesses primarily because of the time and money factor, because you can do all the research in the world, come out with the best product possible, it still doesn't guarantee success. So by going ahead and purchasing Amazon FBA business, we try and grow that business based on data. So if you're currently selling on Amazon FBA, strap in because this video is going to be very, very valuable. And if you guys haven't joined the school community as of yet, which we are the fastest growing school community around Amazon FBA private label, go ahead and join it because we have classroom settings as far as like my mindset when it comes to Amazon FBA, how to diagnose problems in your Amazon FBA businesses. We also have group calls every single week. As you can see, we have 3 of them every single week, along with master deep dives. Like we just had a deep dive when it comes to PPC. And this was a great, great type of masterclass where it teaches you everything about Amazon PPC, how to funnel it, how to structure it, what matters the most, but Let's go on to buying this Amazon FBA business because you can see the purchase details here. I purchased it for $135,000. This is the actual listing here. Um, they were actually listed for $224,000. This is their profit margin, which again, we'll get back to why we went ahead and purchased this actual business. But primarily here, TACoS, you can see if you are in Amazon FBA, TACoS basically stands for total advertising cost of sales. So based on them having a 0% TACoS, they were getting most of their sales organically, right? So why in the world would a, would a brand that has a profit margin of 51% that aren't advertising whatsoever be selling their Amazon FBA business? Well, when you go ahead and look at the P&L statement, it will tell you the story as to why this is going ahead and happening. As you can see, this is broken down as far as what their revenue figures were on the top right over here. So you can see I'm highlighting it right here above my cursor, which let me go ahead and zoom out so you guys see the entire picture here. And again, we're going to go over the basics as far as what this is concerned, because all these numbers might be a little bit confusing here. But what I want to go ahead and show you more so is right over here, their actual revenue figures. So what I'm highlighting over right now is their revenue figures month to month. And if we go a little bit closer, let me zoom in for you guys. You can see in 2024 and 2025 what their average type of revenue was. So we're looking at June 2024 from $12,000 all the way up into their peak month of March of '25 or April of 2025, which was $27,000. And you can see the steep drop-off when it comes to revenue, right? If somebody goes from $27,000 in revenue to $7,000 in revenue, you can go ahead and see here. And if you guys hear my dog in the background, I do all of this live. So if you guys appreciate anything I say in this actual video, All I ask in return is liking this video, subscribe to this YouTube channel. But when somebody goes from $27,000 in monthly revenue to $7,000, people panic, right? So you can see the huge drop-off when it comes to revenue. And this is what happens when people start relying on Amazon FBA. I mean, as far as organic reach when it comes to Amazon FBA, and if you don't have a solid ad strategy, this is typically what ends up happening long-term. Term. So you can see here, advertising is basically nonexistent. If you go ahead and look at my cursor all the way to the left-hand side here, again, I'll go ahead and kind of zoom out for you guys to go ahead and see this. But when you go to the cost of advertising, that entire row is blank and there isn't a miscalculation there. This brand literally spent nothing on advertising on Amazon the entire time. And when you go ahead and look at the profit, and this is the real reason why this person is selling their actual business, Right down there, you can see profit falling off a cliff. So in this case, my investor was telling me, why are we buying this actual business? This is like a falling knife. Because if you take a look at all the profit throughout the entire year, you can see April matches up with their best month ever at $15,000 every single month, or in this case, when one month and $15,000 quickly turned into $2,700 in profit. In just the same year. And usually what this means is that there might be a seasonality to the actual product. And I'm going to go ahead and explain exactly what this product is, right? But in this case, this is not really a seasonal type of item, right? So what is the story being told here? Well, you can see here, as far as like the units being sold right up here on where I'm going ahead and kind of hovering over, is that their sales are basically falling off a cliff. There's a story being told here. So the first thing I want to go ahead and look at is search volume. What are contributing to most of this person's sales? And this is where I got to look into their brand analytics. So whenever I went ahead and went on Empire Flippers, I reached out to the actual buyer. I wanted access to their ad account. I wanted to see exactly where their brand analytics was coming from, what keywords they were going ahead and generating, and if there's a search volume dip when it comes to those actual keywords. So the first thing I went ahead and looked for was basically search query performance. And I'm gonna go ahead and zoom out. All of you guys that are at Amazon right now have access to this type of, uh, tool here on Amazon where I wanted to get a sense of where their sales were actually coming from. And when you go in here, I want to take a look as far as what was going right when they were having their peak months and if this is sustainable. So what I went ahead and did here was I went to 2025 and I went to Q2, which was their best selling month by far, right? We're talking about, uh, in this case, April, May, and June. And when you hit apply, Amazon's going to go ahead and give you all the keywords that they think that you go ahead and resonate for with the actual customer. And I will move myself out the way because this is going to be golden information for anybody that is selling on Amazon FBA right now. So what I want to go ahead and take a look at this picture is this is a funnel to be told right here. You can see how often this person was seen when it comes to impressions, how many clicks they went ahead and received, how many add to carts they went ahead and received, and in totality, what are the purchases for this Amazon FBA business. So in this sense, let's take a look at the very first keyword, fade guide, or fade guide men haircut. You can see that this is often searched up 27,000 times for Q2 of 2025. And out of all of those went ahead and those impressions that were being seen, which was 620,000 of it, I was seeing, or in this case, this brand was seeing 3.52% of the times, right? So out of all the impressions, I was seen 21,000 times. That equates to 3.52%. And then you can see the funnel, right? You can see that even though I only had 3.52% of the impressions, my click-through rate was actually 23%. So out of all the clicks that were generated for Fade Guide, I went ahead and had a 23.5% 5% click rate. And then the magic that happened here is this actual ASIN share when it comes to purchases. So in totality, you can see here, I was only seen 3.52% of the time, but I was actually able to get purchases of 37+% for this actual keyword. So let me go ahead and kind of reiterate this. There was only 1,300 purchases for the word fade guide, and I was able to get 514 of those actual purchases, which equate to 37%, by only being seen 3.52% of the time. So what does this mean long term? Well, there's multiple keywords where this is saying the same exact story. So in this sense, even if I fall off for fade guide, fade guide, fade guard, self-haircut kit for men, fade band, fade haircut tool. There are multiple keywords where there is no impressions whatsoever in this quarter, but my ASIN share purchase share is actually higher. So what this means is if I were to go ahead and start running advertising for these actual keywords, this impression share will go up and hopefully this purchase rate would also go up as well. So there is a bunch of low-hanging fruit here where if I just turn on advertising, start going ahead and targeting these keywords, it should equate to more sales. So the thing that matters here is that this individual person, without doing any type of advertising whatsoever, was still having a 51% profit margin. Which, if I told you this when it comes to Amazon FBA, that you're operating at a 51% profit margin, You'd be like, this is crazy. That's crazy margins. People don't even operate this before running any type of advertising, right? People usually start Amazon FBA by having a 30, 40% profit margin before advertising. This one has over a 50%. So even if I drive this TACoS to be 20, 30%, I will still have a profit margin of above 20%. Profit margin. So even though, you know, the profit margin overall will come down, this monthly profit will likely go up and go up very, very quickly if we start targeting these actual keywords. And again, there's way more stuff that I didn't go over in this actual business as far as like what we're going ahead and doing with this actual brand, because this brand is positioned so so greatly because they have a patent on their actual product. It's not like somebody can go ahead and knock this product off in China and try and come out with it because we have a patent for this, which again, now we have the search volume, we have an ad strategy, we have a patent to see when we actually start growing sales, we can knock people off of this actual listing. This is a formulation of a great type of brand to purchase because now we can go ahead and bundle some certain products with our patent, right? So we can start going after different keywords that we are going ahead and converting on. But if we were to add a bundled product with it, we'll start converting on even further than we already have right now. So again, these are some of the same strategies we use inside the school community where we take a look exactly just like Empire Flippers, right? What is your profit margin? What is your TACOS? What is your cost of goods sold to make make sure and see exactly what lever to pull very, very quickly in your business for you to start making profit quicker. So if you guys appreciate anything I said in this actual business, if you guys are interested in buying or selling on Empire Flippers, I have the link below for you guys to go ahead and check it out. But more importantly, join the school community because every single week we're going ahead and taking deep dives for current Amazon FBA sellers or people that are interested in Amazon FBA. To better guide them of what actually matters, what actually moves the needle. So join me inside the school community. If you guys enjoyed anything I said in the actual YouTube video, all I ask for in return is consider liking, consider subscribing. But until next time, guys, peace.