Apparel & Accessories, Home · Amazon FBM (#95859)
Investigate. Amazon FBM apparel business with 10% net margin and 2.83x SDE multiple shows reasonable valuation and cash flow, but thin margins and platform dependency warrant deeper diligence on supplier relationships and inventory risk.
- •Amazon FBM platform dependency—no direct customer relationships or brand moat
- •10% net profit margin is thin for ecommerce; vulnerable to pricing pressure and cost increases
- •3-year operating history limits visibility into seasonal volatility and economic cycle performance
- •No information on inventory turnover, supplier concentration, or return/churn rates
This is a 3-year-old apparel and accessories business operating as a Fulfillment by Merchant (FBM) seller on Amazon. The operation manages product sourcing, listings, and customer service for a niche home and apparel category.
Financial snapshot: $1.1M annual revenue, $110K annual profit (10% margin), and $91.8K monthly revenue run rate. The asking price of $312K represents a 2.83x SDE multiple, which is within reasonable range for online retail.
This business appeals to operators seeking an established sales channel with predictable monthly cash flow and no technical build or upfront development required. Buyers should have ecommerce operational experience or a strong operational partner, as Amazon policy compliance and inventory management are critical.
Before committing, verify supplier agreements and inventory composition, model seasonal revenue patterns beyond the 3-year history, and confirm the current seller rating and account standing. Request detailed transaction-level data to assess churn, return rates, and SKU performance concentration.
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