Earning Recurring Revenue on Amazon: An Educational Guide for Ecommerce Retailers
An eLearning business that operates a highly efficient, low OPEX business model training eCommerce Retailers how to buy and sell books on Amazon. The company focuses on training people to sell used books on Amazon in a lucrative, sustainable model. They have a strong customer base and a high average customer lifetime value.
OPERATIONS
The company offers training, software, and access to a community that helps eCommerce Retailers succeed in selling on Amazon. They provide ongoing support, coaching, and mentoring to their clients. The business is operated efficiently, with a team of contractors handling various tasks.
The company does not sell physical products or have inventory. They focus on providing training, software, and support to their clients. They are developing mobile apps and web apps to expand their offerings beyond books.
MARKETING AND KEY METRICS
The company promotes its services through PPC ads on Facebook and YouTube. They also host webinars as part of joint ventures, which helps grow their reputation and consumer base. Their paid media efforts have resulted in a significant number of monthly website visitors.
The company has the potential for rapid growth by increasing ad spend, launching a content marketing plan, and implementing an influencer marketing campaign. They are also developing mobile apps and web apps to expand their services beyond books. These strategies can significantly expand their customer base.
The company’s key metrics include average customer lifetime value ($4,000), customer retention rate (7 months), and number of new clients. They also track revenue from monthly subscribers and the expansion of their customer base.
The company has a growing customer base of eCommerce retailers who want to sell on Amazon. They provide ongoing training, support, and access to a community to help these retailers succeed. The company also has an email database of 100,000+ active subscribers.
BUSINESS MODEL & RESOURCES NEEDED
The current owners spend five hours per week handling operations and twenty hours per week developing new software. They have a team of contractors in place who handle various tasks, including operations, software development, phone sales, and customer support.
THE INDUSTRY
The company operates in the eLearning industry, specifically targeting eCommerce retailers who want to sell on Amazon. This industry is experiencing significant growth as more people explore starting eCommerce businesses. The company’s focus on training and support sets them apart from competitors. Examples of similar companies in this industry include online courses and coaching platforms for eCommerce businesses, such as Shopify Academy and Jungle Scout University.
OPPORTUNITIES TO SCALE
The company has opportunities for scaling through increased ad spend, content marketing, influencer marketing, and expanding their services beyond books. They could offer additional services such as credit repair, lending credit, LLC Corp formation, business bookkeeping, tax preparation, and a Fulfillment By Amazon Prep Center.
Asking Price: $18,000,000
Gross Income: $8,063,778
Cash Flow: $3,509,841
Year Established: 2016
Employees: 6
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