On Wednesday, the President signed a preliminary trade deal with China wherein the U.S. will roll-back tariffs in exchange for China’s agreement to purchase $200bn in U.S. products over the next two years, benefiting American farmers and businesses. The agreement is aimed to open Chinese markets to American goods and offers new provisions to protect American trade secrets by imposing heavier punishments for intellectual property theft. This is the first step towards rebalancing the economic relationship between the U.S. and China, and the second phase of negotiations in a few weeks will address industrial subsidies imposed on world markets by China.
Amazon’s FedEx shipping ban has been lifted, once again giving third-party Amazon sellers the option to ship goods using FedEx Ground. Amazon terminated its delivery contract with FedEx in August after the company failed to ship orders fast enough to meet demand. The split was encouraged by Amazon’s dedication to expanding its own delivery service and FedEx’s intent on partnering with other major retailers. With the rekindled partnership, third-party Amazon sellers can look forward to lower shipping costs, increased delivery options and guaranteed fast shipping for consumers.
Google has officially rolled out its January 2020 Core Update. The broad core algorithm update took effect on Thursday and will reassign page rankings to boost sites offering the most relevant content. Search results on a global scale are subject to change and Google’s guidance on the update remains the same as previous core updates. Content creators and publishers are advised to monitor their search ranking data in the following days and weeks. Google notes pages that experience a drop in ranking are not being penalized, but are rather being reassessed by the Googlebot against new content that may be more relevant.
Visa has entered a definitive agreement to acquire financial services API company, Plaid. Total purchase consideration amounts to $5.3 billion, and the deal is expected to close in three to six months. Plaid has been a leader in advancing connectivity between developers and financial institutions as “one in four people with a U.S. bank account have used Plaid to connect to more than 2,600 fintech developers across more than 11,000 financial institutions,” according to a press release from Visa. The acquisition presents new business and market opportunities for Visa within the United States and internationally.
New in FE exclusive listings, this week we have a 5-star private label Amazon FBA business in the Cooking Equipment & Accessories niche listed at $864,000. This business is a dominant player in the space with c.1,700 5-star reviews on Amazon and c.$1 million in revenue over the LTM. With a well-trained team staying on with the business post-sale, glowing product reviews, and a robust social media presence with c.76,000 Instagram followers, this business presents a unique opportunity for a new owner to acquire a strong private-label brand. If you are interested in this business, please visit the link above to request a prospectus.
In events news, we would like to thank everyone who attended our panel event on Wednesday night in London, “How To: Raise Capital for Your Technology Business.” Our expert panelists opened their playbooks and shared valuable insights into raising capital. Stay tuned for our announcement of the next event in our “How To:” series coming in Q2’20.
Our 2020 Market Report will be released later this month so keep an eye out and be sure to request your copy of the SaaS founder’s Blueprint to get your free copy of our guide to profitable exit planning.
Continue reading below for more on Amazon, Google, Visa and more!
Listings
New
Amazon FBA – Cooking Equipment & Accessories – $83K gross/mo – SBA Eligible
- 5-star private label Amazon FBA business, securing c.1,700 5-star reviews on Amazon
- The business has generated revenue of c.$1 million over the LTM
- Impressive social media following of c.76,300 followers on Instagram
- Revenues have grown at a rapid rate of c.50.7% from 2018 to (e)2019 and continue to rise year on year
- Boasts a steady ARPO of c.$17 and impressive sales volume of c.4,100 orders each month
Yearly net profit: $264,000
Asking price: $864,000
Affiliate/Advertising – Fish & Aquariums Product Reviews – $5.9K gross/mo
- Well established brand in an evergreen niche
- Strong SEO foundation with keywords ranking for c.47,700 keywords
- Attracted c.1.8 million visitors over the LTM, with number of visitors rising c.470% from 2018 to (e)2019
- Steady revenue growth, rising at a c.10.8% CMGR over the LTM
- A lean cost structure enabling minimal owner involvement and high net margins
Yearly net profit: $69,000
Asking price: $235,000
Subscription/Memberships – 10 Y/O Digital Music/DJ Courses – $6.2K gross/mo
- Digital product business firmly positioned in the online DJ courses niche
- Strong revenue growth of c.36% over 2014 to 2019 period
- Steady ARPU of c.$41 in the LTM
- Vast social media following with more than 110,000 followers
Yearly net profit: $63,000
Asking price: $226,000
Display Advertising/Affiliate – Technology Blog – $3.2K gross/mo
- Established content business in an industry expected to reach c.$95 billion by 2020
- Impressive SEO presence with keyword rankings for c.101,000 keywords
- Steady investment in content helping amass an impressive library of 1,180 articles
- Strong traffic with c.3 million unique visitors in the LTM
- Highly diversified income with a lean cost structure and high net margins
Yearly net profit: $33,000
Asking price: $83,000
Sold
SaaS – B2B Workflow Automation & Data Extraction Software – $15K MRR
App – Wellness & Self Improvement Portfolio – $25K gross/mo
SaaS – B2B Conversion Rate Optimization & Social Media Marketing – $5.8K gross/mo
Affiliate – Speakers & Accessories Reviews – $3.5K gross/mo
In the News…
U.S. Signs New Trade Deal with China
This week, the U.S. entered phase one of a trade deal with China. Over the next two years, China has agreed to purchase $200 billion worth of American products and services, in return the U.S. will reduce tariffs from 15% to 7.5% for $120 billion Chinese products. The deal will significantly increase U.S. exports, especially for agricultural goods which took a hit as tensions between the U.S and China escalated. According to a senior U.S. administration official, Washington will be closely monitoring data from both parties to ensure China is fulfilling the agreement.
Amazon Lifts FedEx Ground Shipping Ban
Amazon has ended it’s feud with FedEx by lifting it’s Ground shipping ban. The ban impacted third-party sellers’ ability to deliver packages on time as they has fewer delivery options for Prime shipments. Now Prime members can expect to receive their shipments earlier, along with potentially lower costs for goods as third-party vendors will have to pay less to ship their products to customers on time. The ban originally took effect in August 2019 when FedEx was unable to fulfill shipment deadlines.
Google’s January 2020 Core Algorithm Update
This week, Google launched a broad core algorithm update. Updates of this kind occur several times throughout the year and act as a way to refresh page rankings to ensure the most relevant content receives the highest rankings. With this said, all pages on a global scale are subject to shifts in page rankings. Publishers who see a drop in ranking are advised to compare their content to higher ranking page content and making updates to provide even better solutions for online searchers.
Visa Acquires Plaid for $5.3 Billion
In a announcement made this week, Visa is set to acquire Plaid for $5.3B, a figure nearly double the fintech API startup’s previous private valuation. Plaid builds tech platforms that enable users to connect their personal bank accounts with fintech apps like Venmo and Acorn. Early investors in Plaid include Visa, Mastercard and American Express. A board member for Plaid stated the deal is a long-term play for Visa that will position the company for the next decade. Visa reports that by 2020, the deal could contribute as much as 100 basis points to Visa’s net revenue growth.