Amazon FBA Supplement Brand – $1.12M Profit – $4M Asking – 3.6x

Listing Type (?): Solid!

I typically disregard FBA businesses, as they are entirely platform-dependent on Amazon, which has aggressively replaced simple branded products with its own brand (AmazonBasics). Yet business buyers continue to pay a multiple to acquire FBA businesses.

If you’re experienced with Amazon FBA businesses, what am I missing?…

📸 Snapshot:

Founded in 2016, this health supplement brand focuses on heart health, stress, and sleep — with custom formulas originally developed by the owner. Manufacturing is U.S.-based, and products carry strong customer loyalty, with 4.9-star Amazon ratings across ~13,000 reviews. The business is highly Amazon-driven (96% of sales), with 15K+ active Amazon subscribers and 40%–45% of Shopify revenue also recurring. It runs with 10 SKUs, minimal inventory management, and 15 hours/week of owner time.

✅ The Good:

• Recurring Revenue: 15K+ Amazon subscribers plus Shopify subscription revenue drive stability.

• Custom Formulas: Products originated from the founder’s personal health journey.

• Strong Reviews: 4.9-star Amazon average across nearly 13,000 reviews.

• Lean Operations: Owner works ~15 hours per week; minimal working capital tied up in inventory.

• US Manufacturing: Supply chain not dependent on overseas production.

• SBA Eligible: Pre-qualified for SBA lending (though always subject to lender approval).

⚠️ Watch Out:

• Platform Dependence: 96% of sales occur on Amazon — concentration risk remains high.

• SKU Concentration: Top SKU accounts for 80% of revenue; top 3 SKUs make up 96%.

• Customer Acquisition Not Diversified: Heavy reliance on Amazon’s built-in demand; off-Amazon marketing remains untested.

• Tight Margins: although not bad for a physical product ecommerce business selling this much volume, there’s not a ton of room for paid customer acquisition.

• Seller Skill Question: Seller has clearly executed well — buyers need to ask what growth levers remain.

💡 Bottom Line:
A well-run, highly efficient Amazon FBA supplement brand with strong reviews, recurring revenue, and clean operations. But like many FBA businesses, platform concentration and SKU reliance are real risks. This is a solid acquisition for an experienced Amazon operator who knows how to defend rankings and push expansion outside the channel.

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