When Y, an Israeli soldier, had to retire from the army due to injury, there was only one thing he wanted to do: establish himself on Amazon. This is Y’s success story, which goes beyond the storefront that consumers see.
Not only did an Amazon aggregator play a part, but the process also included specialist bankers and a remote network of workers.
That said, you’ll be surprised at how few hands it took to get Y to the point of making his FBA business the perfect vehicle for investment. But it will prove inspirational for any other seller looking to sell their Amazon FBA business for profit.
Admittedly, Y wasn’t new to online advertising. Even before he was a teenager, he’d earned his first shekel using Google Ads. You’d struggle to compare that ‘influx’ of capital with the FBA business he eventually sold to Thrasio, though.
At the age of just 26, with just two local employees and a remote logistics contractor in the Philippines, Y sold his business for $20M.
Finding the value in failure
Y’s journey wasn’t always a bed of roses. In fact, his first Amazon adventure, when he was aged 21, was a categoric failure. And, when you see why, I bet you can all relate to some degree with the process and outcome.
To his mind, he’d done everything right. He’d sourced the product from China, listed it for sale on Amazon, he even sold all the units. Despite this, his naivety ended up making him zero profit from that first venture.
But it did teach him a valuable lesson.
The true entrepreneurial spirit
Using what he’d learned, Y decided to look under the hood of what made a successful Amazon FBA business tick. This began with research, not only into the product and its market but into the potential competition, too.
Thereafter, he made informed decisions about what to buy. He procured three further products (household category), which sold as well as his first failed venture. Only this time, he’d done his homework.
Every ounce of profit he made he reinvested, adding to his inventory, then rinsing and repeating. He recognises how much hard work was involved, but knows it was worth it.
How COVID actually helped
Prior to the pandemic, Y was on the verge of selling his business to a fellow Israeli. Then COVID hit and the buyer reconsidered, before finally pulling out of the deal. More fool him, eh?
As was the case for many online business owners, the boom in online spending during the pandemic skyrocketed Y’s sales. At the same time, a new type of business was emerging: the eCommerce aggregator.
Y already had support from Fortunet, a lender that specialises in end-to-end fulfilment for online merchants. This, along with Y’s attitude, due diligence and high presence in Amazon listings made the perfect storm for the new type of aggregator or roll-up investor.
Happy ever after?
Thrasio was that investor. And, concerned about long-term security in the face of the pandemic, Y accepted their offer to buy his business for $20M. When you think of Y’s humble beginnings, you realise just what can be achieved with the right product, environment and work ethic.
Now that Y’s settled, he’s not been complacent. The injection of capital from Thrasio has enabled Y to operate at a much higher level with new brands. Managing four Amazon businesses and employing 22 people across those services, Y’s on target to hit $100M per annum turnover in 2025.
There’s a moral here, I guess. It doesn’t matter how small your acorn is, if you nurture it correctly, there’s no telling how mighty your oak may become.
How closely can you relate your own journey to Y’s story? If you can and are interested in finding out what an Amazon aggregator might think of your business, why not start that process today?.
Thrasio is purported to have bought businesses now netting them $1.5M profit per day! If you’re a good match for them, there’s no reason ‘Y’ your business can’t add to that pot.
This website was created by ex-Amazon sellers, Martin Smith and Richard Turnbull.
To learn about our story, our private label FBA brands, and our first-hand experience selling to Amazon aggregators, click here.
You may also wish to check out our 2022 Definitive Guide to Amazon Aggregators.
Written for FBA sellers, this simple, easy to follow document takes less than 5 minutes to read and represents the culmination of over 100 hours of research into the Amazon aggregator space. To access the guide today, click this link.