Selling Passive Amazon FBA Business & Dropshipping Website
Zonez is primarily an Amazon FBA-based business model, supported by this Shopify-powered website and a couple social media marketing channels.
The business is almost completely passive, typically requires 0 - 2 hours work per week to maintain. We have 2 freelancers to manage social media and customer service.
Average net profit per month January 2017 - June 2017 = $568/mo [We were a bit wasteful going into the start of the year with ad spending that wasn’t generating ROI, so we optimized and got more efficient, in March - June average net profit was $871/mo. We can send you an accounting spreadsheet to look over upon request.]
Our main brand is Zonez, products so far are novelty/rave/edm glasses, but the brand is positioned to expand to rave accessories or novelty lights/products.
We also have a brand, Surface Fusion, that we used to sell kitchen products. Have stopped pursuing this one for the most part, but still keep it hanging around.
EMPLOYEES They are trained and have SOP’s, they operate mostly autonomously.
Social Media Manager Posts daily on Instagram, engages with messages/comments, and shares every post on Facebook
Customer Service Manager Manages all customer service Replies to negative reviews on Amazon Fulfills website orders
AMAZON FBA amazon.com/shops/zonez $3,860 average monthly sales (2017) Account started in December 2015 Selling 3 products from 2 brands we created: Zonez (novelty/rave glasses) and Surface Fusion (bamboo kitchen products, we used to sell these but phased out) 4.9 stars seller feedback, excellent account health
Diffraction Glasses Our long standing reliable product. Best available quality in the category, great review profile. Supplier is rock solid, reliable, and quick production. Price at $12.85, pretty much runs on complete autopilot steady sales.
Kaleidoscope Glasses A new product that is off to a good start. We haven’t done a review push yet, but just straight organic and PPC has gotten it sales and some reviews. Quality is great, supplier has a lot of color and style options at low MOQ. Were selling steady at $28.54, recently dropped it to compete with others lowering price, since we don’t have a lot of reviews yet.
Bamboo Can Openers Leftover product from our Surface Fusion brand. The quality isn’t reliable on these, so sales dropped dramatically, from 20+ per day to 1 per day lately. (although conversion rate is still in the upper teens) We don’t invest in this product anymore, just collect the passive income from the remaining units in stock.
WEBSITE ZonezGear.com Hybrid Amazon FBA / Ali Dropshipping site. Average $50 - $400/mo in sales with no marketing effort. Uses Oberlo to add aliexpress products, makes it easy to scale product listings and market ali dropshipped products. Started selling in March 2017 to expand off Amazon.
EBAY http://www.ebay.com/usr/surfacefusion Fully automated using Joe Lister to fulfill orders via amazon. Sales $13 - $38 per month. We don’t do any marketing at all.
SOCIAL MEDIA We didn’t really do much on social media until this year. Now we have an employee managing the content posting on Instagram, and sharing posts automatically on Facebook and Twitter.
Instagram https://www.instagram.com/i_love_epic_visuals/ 3,564 followers (2.5k were purchased in April to seed the account)
Facebook https://www.facebook.com/i.love.epic.visuals/ 320 followers Haven’t put any effort other than some FB ads here and there Posts auto-shared daily from Instagram
Twitter https://twitter.com/epicvisualz Have put zero effort here, other than setting up IFTTT to auto post our Instagram pics/posts to Twitter account, to set up a foundation and add content.
INVENTORY As of mid July, inventory levels are:
390 Diffraction Glasses 110 Kaleidoscope Glasses 3,340 Bamboo Can Openers
EXTRAS We stopped pursuing our Surface Fusion brand, but are including those assets free if you want:
SurfaceFusion.net This isn’t factored into the valuation, but it’s free if you want it. Doesn’t really do any sales, but we keep the site up because of it’s potential to resurrect and fill out with either Ali dropshipped products, or create some more private label products under the Surface Fusion brand. The other product - wine stoppers (https://www.amazon.com/dp/B01A6IBB6W) was a good product, just hard to turn a profit because of the market price of similar products in Amazon. Our wine stopper supplier is great, and has other wine products if you wanted to expand. The bamboo can openers, the defect rate is higher than we prefer. The supplier has some other cool products, kitchen utensils, etc. But I wouldn’t order more can openers.
GROWTH PLAN The business and Zonez brand have a solid foundation ready for growth, and an easy launchpad for new products.
New Products We only have 2 products with the Zonez brand, but it’s positioned to expand into a wide range of accessories. Anything off the website could be converted to FBA, or any product in the rave accessories niche (different glasses, light up gloves, clothing accessories). One idea we were thinking was to push marketing to Ali dropshipped products on website, and whatever performed well, turn into an FBA product.
Website Add more Ali dropshipped products using Oberlo. Scale up to 100’s or even 1000’s. Create content marketing plan (we have a basic blog but that’s it). Put some effort into using sales and marketing apps.
Email Marketing Using email appends service to collect Amazon customer emails and funnel them into other products on the website. Set up automated email funnel to promote the Ali dropship products.
Social Media Right now it’s pretty passive. Seeking out Instagram ambassadors, doing contest giveaways with Gleam, running specials, etc can all increase social media action. Free shipping + Facebook advertising is one of the leading methods to promote Ali dropshipped products.
VALUATION We did the Empire Flippers valuation tool plugging in the numbers from April - June and received a valuation of $23,650 for the business, not counting our inventory or off Amazon assets.
Our asking price is negotiable, let’s set up a meeting to go over any questions you have.
We will be freely available for 30 days after the sale of the business to help get you integrated and answer any questions.
We have other ongoing projects we want to focus on growing, so we are looking to offload this business now to put capital to work elsewhere.
Revenue includes sales until the end of last month and is calculated from Exchange’s eligible payment providers. Total traffic comes from all data available to Shopify.