Buying an FBA business is risky. 30% of acquired brands fail within 12 months. Here is what to check.
1. Traffic Analysis
Is the traffic sustainable? Check the Session Percentage.
- If 80% of sales come from PPC, the business is buying its revenue. Dangerous.
- If 80% comes from Organic, check if it's branded keywords (fragile) or generic keywords (asset).
2. Supplier Relationships
Do they have a contract? Is the mold proprietary? If the factory starts selling the same product to 5 other sellers next week, your value drops to zero.
