I recently looked at a business that was generating 95%+ of their revenue through Amazon and ultimately didn't pursue due to 1) low barriers to entry and concerns this would lead to competing on price, 2) ability to sustain consumer interest / preferences, 3) beholden to Amazon's changing fee structure.

If I was able to get comfortable with the business dynamics, I thought this would follow a similar due diligence process. Curious if others have different perspectives / insights.

You need to have a plan to growth before you buy. I know few people who buy that kind of business and have to close 1 year after. It's not the business was not profitable but they didn't have the right skills to run it

Gotcha....that’s why keeping the owner on for at least[redacted]months is very essential. Because my plans don’t mean squat if what is working...is already working. #aintbroke...dontfix

I ran an Amazon store for a CPG brand for a couple of years--make sure you keep an eye on changes Amazon is going to make so you can stay ahead of them and have contingency plans in place. Amazon is unpredictable.

I think I saw that deal on a brokerage website. What I think is good about it is that it's a fully remote operation, has upside from better management. What made me pause was the highly cyclical nature (which means you'll need a bunch of working capital to grow - your supply chain lead time will be in the 2+ months) and Amazon is a platform that is less forgiving than others - so improving your rankings, keeping reviews strong etc. will require a lot of attention. Overall I'd say make sure that your purchase multiple will compensate you for those risks!