An Amazon FBA seller with eight years of experience now buys existing businesses instead of building new ones. Large acquisitions ($1M-$2M) generate $50k-$80k monthly with lower risk than small ones, and established review counts (10k-20k) create competitive moats. SBA loans can finance purchases with just 10% down.
Chapters
So I've been doing Amazon FBA private label for the last 8 years now. And since 2022, I've shifted my focus of buying Amazon FBA businesses instead of starting from scratch. And the reason why I buy Amazon FBA business is because it's technically safer than starting from scratch, because there's a lot of things that can go wrong when you start a business from scratch on Amazon. But the thing is, I buy small cap Amazon FBA businesses, businesses from $150,000, $200,000, all the way up to $300,000. And these businesses are generating in profit $5,000 to $10,000 per month in profit. But the thing is, these businesses are still small caps. So there's so much risk involved. Basically impressions can drop, ratings can drop, and sales can literally get cut in half. Even in this range, you can only imagine if it's risky in this type of field, it's extremely risky when you're starting from scratch. But let's say you were to purchase a business for $1 million, $2 million. These figures basically add a zero to them, making $50,000, $60,000, $70,000, $80,000 per month in profit. Those are the businesses that are actually safer. And sometimes with the SBA loan, you can go ahead and acquire these type of businesses for as little as 10% down. And even with the SBA payment, you're still cash flowing a good amount of profit every single month. But the reason why these price points are better to purchase as far as being safe is the fact that you have some type of prime real estate when it comes to Amazon FBA. Maybe you have 10,000, 20,000 5-star reviews. Maybe you have a bunch of different types of products and segments where you're dominating that actual space that is going to take another company years to even catch up with you. But again, you still have to know about Amazon FBA in general, but, but the higher you go up in these actual price points, the safer these businesses actually are.