I Turned a $6K/Month Amazon Business Into $60K/Month (Step-by-Step Breakdown)

There is a massive difference between launching products and actually building an asset. And if you're an Amazon FBA business doing revenue but your margins keep shrinking every time Amazon fees go up, you're already in this trap that you see right over here. And I took a brand doing $6,000 a month to $60,000 per month in not revenue but profit without launching a single new parent ASIN. I'm going to break down the exact 3 levers that actually did it, including one pricing move most sellers are too scared to even touch in their business. And if you don't fix this, you'll keep working harder for less money every single year because fees do not go down on Amazon. They always, and I mean always, go up. And here's proof, right? So I purchased this actual business on Empire Flippers around 3 and a half years ago now. And you can see I'm actively purchasing businesses. These are my Empire Flipper numbers here. I did the first business I went ahead and purchased is one I'm going to go over in this case study, but there are numerous different types of businesses that I have gone ahead and purchased on Amazon FBA. But let's talk about this case study where you can see the business was doing $5,961 in monthly trailing 12-month profit. And we went ahead and took it to $58,000 in profit every single month. And this is a screenshot from Sellerboard itself. For those of you guys that are skeptical, this is the actual, you know, you can see the actual products that I go ahead and sell. This is Maverick. You can see the cost breakdown, how much I spent in advertising over this last trailing 12 months. And I'll even go ahead and go as far as showing you the exact revenue figures, the The refunds, the promo, the advertising, the cost of goods sold. Everything is there for you as opposed to like tacos. Everything is here for you. You can even see my, my actual conversion rate at the very bottom there. So if you are a skeptic, I'm here to go ahead and kind of calm your nerves because I'm an actual operator, owner of this actual business. But one thing's clear, the acquisition thesis that I always do before I purchase an Amazon FBA business and see if it's primed and ready to actually scale. And again, I buy problems. I do not buy lottery tickets. And I've been burned a couple of times with purchasing Amazon FBA business. And this framework is going to go ahead and save you hundreds of thousands of dollars. And why do I say that? Because I have lost hundreds of thousands of dollars. Okay. So one thing I look for is stable demand. I need at least 2+ years of sales history. I bought in fads before. I bought in supplements that have gone crazy as far as search volume because there was not a lot of competition and then demand kind of falls off a cliff. So I need at least 2 years of sales history. Number 2, real profit. I do not want to buy a business anymore that is generating less than $5,000 or even $6,000 per month in profit. If you could buy a business that's doing less than this trailing 12 months, you are buying a startup basically where, you know, it could be a fad still. It could be something where they got lucky on a few keywords and they're going ahead and making sales on that. So I need some consistency when it comes to actual profit before I can actually scale a business. And there has to be some hidden upsides, problems that only operators that have been in Amazon FBA can fix by just going ahead and pulling a few levers. And this is the actual product, as I mentioned before, right? Maverick was a target that had all of this. And basically was able to go ahead and fix from going from $6,000 to $60,000 a month in profit. And I acquired it for $190,000. Here's other proof of it right here on the seller dashboard. We can kind of go into the actual business. You can see the purchase details. I did some seller financing as well. You guys get the point, right? So I acquired it for $190,000 and the starting profit was $6,000 and the business was actually 3 years old. I have the P&Ls if you guys are interested in going ahead and seeing that. Go ahead and drop them in the actual comments below. But what were the broken levers that I diagnosed when I first bought this actual business? First, traffic tacos, 14.2%. And basically this just means that out of all your total sales, how much of it came through ads? So for all the revenue figures, 14% of that revenue figure came from ads. But I saw a lever that was ultimately one of the best levers I went ahead and found, which was they were running out of budget by midday. So they were making these sales, they were making these revenue figures, they were making this profit, but they would run out of budget midday. So the potential to get more sales was just as easy as turning on or giving the actual ad campaigns more and more budget. Seems obvious, but I have come over so many different types of businesses, especially on Empire Flippers or Quiet Light, that this is a very, very common thing with a lot of Amazon FBA operators, right? Because they're not in the weeds of their actual business. They are more product-driven. So that's one. And also there was a bunch of different types of campaigns that weren't being run, but I'll go ahead and save that a little bit later. I just want to go over the top-line levers. Number 2, COGS, right? COGS were on average on the best-selling ASIN around $4.50 per unit and was never negotiated. As they were scaling up, they thought this was the best price possible. They never went back to negotiate these prices with their actual supplier, or in better terms, reach out to other suppliers, get some samples, test the quality control, and then negotiate from there. Right? So that's another lever that went ahead and got pulled. The number 3 lever, conversion. There was a 10+ conversion. And you guys might look at this and be like, wow, that is a great, great conversion. And I will tell you that it really depends on your actual niche, but the higher the conversion, the more opportunity there is in the actual business. Why? Because people that strive or stress or go ahead and are infatuated by conversion rate are relying solely on organic traffic and high-intent buyers. You see, when it comes to Amazon, it is a funnel. You can't just rely on the low-hanging fruit. You have to try and convince people at the top of the funnel as well that will eventually come and buy from you long-term, right? So this is running more broad campaigns, more phrase campaigns, and then running display campaigns to be able to retarget this end customer. Maybe not on the first choice, but eventually they'll go ahead and keep on buying. So the real PPC problem, let's go ahead and kind of analyze all of this, right? So focused on ACOS targeting only. And as you, if you're an Amazon PPC or Amazon FBA operator, this is kind of normal to you. People are obsessed with ACOS and having some type of targeted ACOS where if a campaign has an ACOS of over 25 or 30%, they quickly optimize it, optimize very quickly because they want to be below a 30% ACOS. The thing is, if you are striving for an ACOS number, you are only relying on safe traffic. That means that you're only relying on basically low-hanging fruit and you're not expanding the search volume and the reason why Amazon is so powerful. So I've put right here, Like where they were spending versus where the buyers were actually here. And that is buyers were ignored. High-intent long-tail keywords were not being targeted. Broad match campaigns were not being targeted. Different sponsored brands, sponsored display campaigns were not being targeted. Sponsored brand videos weren't being targeted here. Right. The thing is that sometimes people don't like running these different types of campaigns because they see that their ACOS level is above 30%. Not knowing that the more and more traffic and the more and more data that you feed Amazon, the more you're able to retarget certain customers. And you can see that they were only paying for profitable sales, right? Which is okay. A lot of these people that do Amazon FBA do this as a side hustle. They build this along with their full-time job. So they are obsessed with the profitability of their business and they don't really see the actual future of their business, how they're gonna be able to convert different types of sales long-term, right? So that's another one. And you can see by just implementing this one lever, which was a PPC overhaul, you can see before, right over here, the month before I purchased this actual FBA business, they were running very, very optimal, right? $4,000 in ad spend in a single month, and they made close to $17,000 in sales. This is a great business that was just being underutilized when it came to ads. And what did we do as far as what they did as far as running out of budget, not going ahead and scaling with ads? After that, we focused. You can see that same May figure right over here. We just exploded in ad spend. And what did that result into? Well, you can see right on the screen, we spent in a single month, our best month, which is August, right? $120,000. In ads in a single month, just based on data, refining that data, seeing the keywords that were actually going ahead and converting into sales, working on this one funnel where we just weren't relying on the actual profit or the high intent of the bottom of the funnel. We actually had a full funnel approach, and that led to close to $400,000 in sales through PPC. And again, this is just PPC alone. We still had organic sales coming in as well. So just by going ahead and fixing this lever, you can see they were properly optimized, going ahead and trying to go ahead and just worry about profit for every single customer. And they had a 14% TACoS. And we took over this business, basically exploded to 23% in TACoS, but that allowed us to make extra $12,000 every month. Every single month, not by coming out with a new product, but by fixing what the inefficiencies were in just PPC alone. And again, it takes some time to collect this actual data, but let's go over level number 2, or lever number 2, which is supply chain reset. You can see that I mentioned before, before they were going on their best-selling ASIN, they had a cost per unit of $4.50. And their payment terms were 50% upfront, 50% when the manufacturing was— when the manufacturing went ahead and finished. I'm sorry, I go ahead and don't make any edits on my actual videos. So again, I appreciate that. Like, subscribe. But after negotiating, after scaling the actual businesses, going ahead and giving the manufacturer more and more business, we were able to drop it by 31%. And on top of that, preserve cash flow issues because now we have a net 60-day terms. If you guys don't know what that means, it means that they manufacture the actual product for us. Once it has shipped their facility, we have 60 days to pay for that inventory. So it allows us to get these items into Amazon, get some sales, and then pay our supplier after that. Right. And if you do not ask, you cannot go ahead and get these actual terms. And just by doing this, again, not coming out with any new parent ASINs right over here, we're able to profit $8,500 every single month just by negotiating price with our suppliers. And by the way, right, if you want the exact checklist I use to evaluate these actual deals, right, plus a step-by-step breakdown on how to fix your PPC, negotiate supply chain, and basically optimize your actual listing I put an entire framework into a free PDF called the Maverick Operator to Owner Playbook that basically whatever I go over today is going to be in that PDF. It is not a course. It's an actual playbook that I used to take this business that was basically— I bought it for $190,000 at acquisition to over $2 million in value right now. And it's completely for free. So the link is in the description. You don't need to go ahead and confirm. You don't have to confirm for an email. You're going to go ahead and get it instantly. So now let's get to the actual third lever in this actual business. So after that, we have the listing optimization, as I mentioned before, and I give you guys a sneak peek of how it looks like, but I am obsessed with A/B testing when it comes to Amazon and main photos, because the thing is, once you start receiving data and you start looking at the search query performance on Amazon, you actually uncover what gives you the most sales. You see where the funnel is breaking. You see where there's low-hanging fruit. And I started noticing that people are going ahead and searching up our keywords based on them wanting to put their phone somewhere when they go on long-distance running. So before, the main image looked fine, right? You can see the main image really didn't change. What I did add was 2 separate things. I went ahead and optimized a phone to fit in the actual pocket. So now when somebody is typing in a running phone holder, vest or whatever like that, or whatever it might be as far as our keyword, they don't have a question as if their phone is going to go ahead and fit. And I also added a lifetime warranty on that as well, right? So based on just making these fixes alone, revenue went to 7 figures because now the actual keywords that we're targeting are targeting a certain demographic that over time they see us over and over again with ads that eventually they're going to go ahead and convert and buy. Again, little tweaks like this you can make in your listing based on your search query performance and what actually moves the needle. And you can see the results in 8x asset valuation where we're going from the base profit of $6,000. We fixed some PPCs, we missed some COGS, And then we have a conversion and growth killer, right? Optimizing cost per click, optimizing click-through rate, optimizing conversion rate, everything. And obviously we added different color variations or different size variations of our actual product, but the core system still remains. And this is literally the exact playbook that took us from acquiring this business from $190,000 now we actually have this business listed for sale at Quiet Light for over $2.1 million, which is still kind of nuts to say, right? So like the choice is yours. You can continue being an operator, building a job on a hamster wheel where you're over and over trying to go ahead and come out with a new product that we mentioned in the beginning of this video, or you can actually become an owner building an asset that runs literally on 30 minutes a day. Especially with AI now being able to download reports, talk to each other, being able to see exactly where the low-hanging fruit is. There is no excuse that you can't build on what's currently out there for sale because I'm telling you right now, people that got into Amazon FBA got into it as a side income type of project and they don't know the right levers to go ahead and pull. And look, if you guys are interested again in a strategy call, You can go to schoolfba.com and we'll kind of go over as far as like what your business is right now. If you're trying to buy an Amazon FBA business and scale it, this can go ahead and kind of work for you. But if you're tired of just running a job and you want to actually own an asset, stop guessing and start using frameworks that I went over here. I took everything I just covered in a deal valuation checklist and basically went into more depth as far as the 3 growth levers and the exact 30-day game plan I ran after acquiring acquiring Maverick, acquiring Dynasty Golf, acquiring Fade Guide. Basically, it's all going to be a free PDF called the Maverick Playbook. That's going to be right under the description and in the pinned comment down below. And again, it's completely for free. So click it, download it, and start fixing your business this week.