2024.05.18 - Signing The NDA On This Pet Ecom

I figured I’d send this out before I sign the NDA on this one.

Usually I type up my email, and then go back and request the CIM. In this case I don’t feel like waiting a week or so to request.

Don’t bid me up on this one haha

It’s a pet products ecom business.

💰 Asking Price: $366,815
💼 Cash Flow: $9,170/month
📊 Gross Revenue: $19,607/month
📅 Established: September 2019

View Listing

It’s had sustainably high margins (above 40%) for 5+ years and some subscription revenue. It’s only got 6 SKUs so you can operate with focus. And it utilizes a 3pl so you don’t have to touch inventory. There’s no mention of Amazon so I assume sales are made through their website.

That all sounds peachy what’s the flip side?

In this case, supplier risk stands out. It would be crucial to finding and lining up alternate suppliers.

Then there is competition. The listing states the products come from China straight to a 3pl. Reading between the lines of that, there’s not much (if anything) proprietary about these products. So by nature it would be easy for someone to come in and 'rob and duplicate’ the whole thing. There’s a whole ‘sub industry’ of entrepreneurs that just rob and duplicate simple business models of trending products then cash out and sell the businesses as sales are on the uptrend.

HOWEVER this business has a solid 5 year track record, which is uncommon for the ‘winning product pump and dump’. I’ll certainly be evaluating the tenacity of the product. I’m also curious to see how diverse the revenue is — in other words does 90% of revenue come from 1 of the 6 products?

Here we go.