I have been a consistent 9-figure seller for the past 6 years with Amazon Wholesale FBA. I run 9 personal stores which all generate 7-8 figures profit yearly. I show not to flex but to show that I actually run a real business. Most people in this industry have never done more than 5 figures a month.
My incentive to partner with you is to utilize the liquidity of other high-net worth individuals such as yourself alongside mine, so that we can build together and close bigger companies and brands on Amazon. We get the best pricing with our buying power, and we all make more money together. Win/win situation.
In this business we become equal partners. My team and I run the store, and you supply the capital for your purchase orders. We set up your LLC, obtain the resale certificate, and you get direct wholesale relationships with my suppliers. My team and I start placing purchase orders for your store once setup is complete. We make money on the backend by scaling the store to a 50-100k/month profit within 18-24 months, and then selling it for a low 7-figure acquisition payout (3-5mil) or keeping it as a passive cash flow investment on your end.
You get access to all my suppliers with top tier pricing, and net terms. We do all the product research, relationship building, inventory management, purchase order fulfillment, store management, and account management.
I do only Wholesale and Private Label FBA. It is straight unethical the way I see most people run "automation companies". They take the upfront payment, give you a drop-shipping store (drop-shipping on Amazon is against their terms of service), the Amazon store is suspended within 2 months, and you make 5-10% margins when it actually is active.
What is Amazon Wholesale FBA? How does it work?
We create relationships with brands and authorized distributors.
We find profitable branded products from distributors which already sell well on Amazon.
We order these products from distributors in bulk and ship them directly to Amazon warehouses.
Amazon then takes care of everything for us: the shipping, fulfillment, customer service, returns etc..
Partnership Goal
The primary goal of this business is to have net terms/credit lines with 10-20 different suppliers that fund your business for you along with your own credit lines and liquid capital. If you have a 20-30K credit line with each supplier, you will have an additional 200-600K of "free capital" to work with. On the low side of 20% profit margins on that money, that’s $50-100K profit/month. This usually happens within 18-24 months of building relationships with your suppliers. This time frame will vary based on your initial starting capital. The reason why you need a minimum of 25k capital is to place the initial purchase orders to establish the net terms with each supplier.
Once the store hits this target profit, we will either sell the store for a low 7-figure exit of 3-5mil or keep it as a passive monthly income business. We split all profits 50-50 as equal partners either way.
Frequently Asked Questions
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1.Is 50k liquidity okay or is more expected at any time later?
50k+ liquidity is enough for the initial inventory. More can be injected later for faster scaling. -
As I understand, we are also using supplier net terms and credit lines they make available, so this is what allows us to access higher inventory, but we need the equity to make the initial orders to get this started, right?
Correct. The initial 50k+ is required for the first purchase orders. -
How do we distribute net income monthly during the entirety of the business partnership?
Bank transfers through ACH/Wire. -
Operating Expenses and or additional invoices can I expect monthly?
Besides the profit split, operating expenses will be roughly 1k/month. This is paid for with the upfront until the business is generating profit. Licenses, subscriptions, Amazon marketplace fees, inventory management fees, shipping fees, team management etc. -
Do I have to file taxes for the business?
We will help and recommend a great CPA, but yes since the business is under your name you would be responsible for filing and paying your taxes for the profits generated by the business. The profit split would be deducted as a business expense on your part. -
How does COGS scale as sales scales?
COGS will be roughly 60-70% of sales to get a gross margin around 30-40%. This may get lower as we scale to 100k+/month.
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When is the time to sell, how/where are you finding the buyer and who does the deal - broker or marketplace? Just want to confirm that this part is done by you and your team, not by me, right?
After at least 18-24 months of cash flow, we will be doing this entire process, but you're welcome to help if you have a potential buyer.
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Time involvement expected of me per week for store and order management?
10-15mins/week in the initial 8 week onboarding phase as Amazon asks for documents/verification. After that, there is no time investment required. My team and I handle everything.
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What do we do if inventory is not sold?
It's Wholesale FBA so the products are guaranteed to sell since there is a preexisting market for each product we buy. In the worst case scenario, the products may take an extra month or two to sell and we will slightly lower the price. -
Is it correct to say that worker and software expenses, insurance are already covered by the upfront cost paid for setup, or does it come out of business gross profit income under operating expenses, or is this an additional cost required of me?
Correct. This is paid for by the upfront cost until the business is generating sufficient cash flow/profit. Once this happens, we'll deduct it from the business revenue/profit. -
What are typical gross margin, COGS of sales %, EBITDA, and multiples from past sales?
Multiples have been 3-5x in the past.
We have a previous client store below.
Previous Client Store
10k in sales at a 25% ROI.
3 months after onboarding.
37K in sales at 20% ROI.
12 months after onboarding.
387K in sales at 15% ROI.
17 months after onboarding.
Monthly profit > $50k.