This changes everything for Amazon FBA….

We're starting to see more and more e-commerce brands get sold for crazy amounts of valuation. And I think this time around it's a little bit different because back in 2020 and 2021, everyone had money. This is why there was so much institutional demand in every single category, and e-commerce was no exception. In the Amazon FBA space, where I buy and sell Amazon FBA brands, There was companies like a Thrasio, like a Perch, like a D1 Brands, like a Hay Day that were all Amazon FBA aggregators that saw the potential of Amazon FBA and literally went all in. The use case was already there, right? We had institutional demand. We're driving up valuation of these actual businesses. And they all came crumbling down just a few years later. We're talking in 2020 and 2021, where an Amazon FBA brand, as far as SDE is concerned, could sell for around 6 or even sometimes 7 times yearly SDE. In perspective, now you can buy an Amazon FBA business for around 2x SDE, which again, that's a huge catastrophic drop. In valuation. And these businesses, these aggregators, actually, you know, had meetings, try to save themselves, um, or trying to go ahead and save these valuations on, on their actual business. Because obviously all this is paper valuations, and they couldn't go ahead and sell for bare bones because nobody's willing to go ahead and pay for whatever, um, type of P&L investment they had in their actual— or valuation they actually had in their actual business. But it brings me to say this: that in a world where AI is taking over everything, product development, building brands is never going to go away because every single company is built and valued based on a moat. And with Amazon FBA, that moat is already there. We are just going ahead and fulfilling the demand that Amazon already brings. You see, the biggest difference between a Shopify store and Amazon FBA is that people are already problem aware on Amazon. What that means is that we are keyword driven, meaning that a customer already has a problem and we are just listed on Amazon as a potential solution. And Shopify, there might not be a problem. You have to go ahead and be able to explain the problem. And then come up with your solution through a Facebook ad, right? That's the biggest difference. And this is why Amazon is worth the 15% commission that they go ahead and charge on top of you know the discounted freight cost. I know that fees continue going up and up, but it's still worth it to go ahead and sell on Amazon. And buying Amazon FBA businesses literally changed my life because I first bought my Amazon FBA business, my first Amazon FBA business. Back in 2022 where valuations were basically collapsing. I basically caught a falling knife and I was able to turn a small-cap Amazon FBA brand doing $6,000 per month in profit and now is doing over $59,000 per month in profit. Right. And I'm still not done as far as going ahead and purchasing up the brands. But the thing is, why do these, these Thraceos, Purge, Hay Day, D1 brands end up failing? And it was because an investor, or an institutional investor, or a private equity group know how to read a P&L sheet like a pro, an expert, but they don't know how to run a business, especially e-commerce, where cash flow is the biggest bottleneck you will go ahead and have. And the reason primarily that they failed is because break cost, cost of goods exploded when they purchased their Amazon FBA business. And because of that, it kept on shrinking their P&Ls more and more and more to the point where a 20-30% profit margin business slowly turned into a 0% profit business when they go ahead and started putting employees in place. And Amazon FBA changes a bunch of people's lives. I know people might say that it's like a get-rich-quick scheme or like something where only people that talk about Amazon FBA go ahead and make money. And the thing is, like, I have an operator group. I'll go ahead and kind of link it below, but I just want you to show proof that these are actual operators that own the P&L of their actual business on Amazon FBA, meaning that they invested, let's say, $10,000 to start a brand from scratch And now they go ahead and manage a cash-flowing type of machine once they got past the actual bottleneck. And these people are the best people to be able to manage brands themselves, because that is the key reason why a Perch, a Thrashields, a Hay Day, a D1 Brands ended up failing— because they try to put regular employees into place, run an Amazon FBA brand manage certain verticals in that Amazon FBA brand that they had no idea what to go ahead and do. Because the thing is, Amazon FBA is simple. It's 3 easy things that are very complex within themselves. Number one is being a conversion rate expert based on the data that Amazon is going ahead and giving you. That is reading a search query performance data report and seeing where the funnel is breaking. Because sometimes people think that all they have to do is lower cost or go ahead and crank up PPC in order to go ahead and make more profit. Well, that's far from the truth. First, you have to understand what angle are you taking with your actual product on Amazon? Because again, we're all just solution-based. We're all just offering a solution based on the problem that people are going ahead and searching up. So where's that funnel breaking? Is it the main image? Is it the price? Is it the reviews? Whatever it might be, right? It might be just in the fact that you get no clicks, so you have to go ahead and fix that. It might be that you have no traffic, so go ahead and fix that. It might be your add-to-cart rate is dropping off because something in your actual listing is not resonating to your actual customer. You have to understand where to analyze that actual data and where to actually make the fixes that will contribute to the bottom line. That's number one, that's conversion rate. Number 2 is taking all that information and being a PPC expert. But not in the way that you think. You see, like Amazon, a lot of people go ahead and focus on the highest intent type of customer, which again, it makes sense, right? Amazon compresses a bunch of margins. You only want to go ahead and talk to people that are actually gonna go ahead and purchase your brand. So it makes sense that people are only focused on high intent type of buyers. The problem is that nobody goes ahead and starts targeting the mid intent and the low intent type of customers. Where when you're creating a full funnel approach, leads are there constantly that if they don't purchase today, they don't purchase next month, they don't purchase next year, but eventually they will based on the full funnel advertising strategy that you go ahead and do. Where again, conversion rate is the best indication when it comes to the high-intent buyers, but there's different metrics to go ahead and kind of go by with the other type of buyers. So that's number 2, the PPC expert and the conversion rate expert. And number 3 is product development, but not in the way that you go ahead and think, right? Product development, where a lot of people go wrong, is they try and throw spaghetti at the wall or they try and come out with products where they think it will be a home run product. Where in reality, if you look at Search Query Performance Report, you will see gaps in the market already where it's natural for you to come out with that actual product. Right? But if you don't read the data, you will throw spaghetti at the wall like these people, like Thrasyr, like a Perch, like a Hay Day, like a D1 Brands, and come out with a bunch of different products that all end up failing. I've seen it numerous times. I've done it myself in this actual space. Um, and that's the number one thing to go ahead and kind of bankrupt yourself, because again, it's a cash flow intensive business, especially when you start scaling out. And obviously number 4, which I didn't include here, is what these private equity groups do best is reading P&L sheets. A lot of sellers, a lot of people in the school community that I'll go ahead and kind of link down below if you guys are interested in even checking it out, is that they think that all they have to do is one of these 3 things, right? Like, oh, I just need help with my conversion rate, or I need help with PPC, or I need help with product development. Where in a sense it's like you got to take a step back in your actual business and see where you are going ahead and leaving money at the table, which is like the unit economic price of your product, right? Where is your margin going? Where are your expenses when it comes to Amazon, your cost of goods sold, your ads? And based on that, where is there meat left on the bone for you to shave off and get more margin so you can go ahead and scale your business even further? And that's what private equity actually goes ahead and does very, very well. But valuations are only going to go up. When it comes to these e-commerce brands in the world with AI where software is getting compressed. People think they can go ahead and just make any type of software system out there and kind of go with it, which again, there's a bunch of use cases that agree with that. But when it comes to actual product, when it comes to actual moat, when it comes to building brands and sufficient with demand, product-based businesses are still going to be probably the most valuable type of businesses to be out there. So I'm excited that I'm in this space. I'm not excited that valuations are going to continue to go up and up as I'm buying Amazon FBA businesses, but when I go to sell them, that's where the reward actually happens. Because not only can I go ahead and benefit from a cash-flowing type of business when it comes to Amazon FBA once something is scaled out, but when it's time to sell these actual businesses, that's where the real money is made.