For sale is a business that sells replacement filters for household items. Based out of Florida this company specializes in selling appliance consumables—parts that need to be replaced on home appliances e.g. water filters. This creates a unique scenario for an e-commerce business where there is recurring purchases. The items are perishable and have a lifetime of between 1-6 months, depending on the product, thus creating a need to repurchase the item again and again. This recurring purchase need has caused the business to grow exceptionally fast. Revenue expected to be over $8m by the end of 2018 and produce profits of $2m.
The company also enjoys high barriers to entry. Several product needs to be certified by a third party company, that Amazon needs to verify before being able to sell on Amazon. Thus it is the #1 or #2 seller on Amazon in most of their categories.
This business is also one of the highest rated (5 stars) stores on Amazon with nearly 15,000 ratings with a 99% lifetime approval rate. They have a unique customer service process that generates highly satisfied customers, leading to many repeat purchases.
This company has enjoyed a steadily growing growth trajectory. The company made $2 million it its first year. From Sept. 2016 to Sept. 2017, the owner saw $4.1 million in gross sales; and from Sept. 2017 to present, there is $6.9 million in gross sales—that’s a $2.8 million increase over the last year.
Perhaps the most enticing feature of this company is that entire business can be run from a computer anywhere in the world. In fact, the owner spent a month overseas and easily supervised it a few hours per week from his laptop. There is virtually zero infrastructure, low fixed costs, and no employees other than three who are contractors. Products are entirely drop-shipped from China to Amazon warehouses, where fulfillment takes place.
SBA Approval: This deal has been SBA approved for $6.5m (includes inventory of approx. $900k) Cash injection required is $975,000 (15% equity injection)
Note: Asking price includes inventory.