Overview

A German Amazon FBA seller recently disclosed that he sold his established private‑label brand for a seven‑figure price and is now using the proceeds to launch an entirely new product line. The interview, featured in Helium 10’s episode #67, outlines why the exit made sense, how the cash was structured, and the step‑by‑step plan he follows to rebuild a business from the ground up—insights every Amazon seller should study when weighing an exit versus a fresh start.

Key Points

• Seven‑figure exit — The entrepreneur closed the deal for roughly €1.2 million, converting years of inventory turnover and brand equity into a single cash infusion that can fund future ventures.
• Brand performance — Prior to the sale, the kitchen‑accessories brand generated about $3 million in annual sales and maintained a 30 % profit margin, demonstrating a mature, profitable operation.
• Reason for selling — Growing market saturation and increasing Amazon service fees threatened margin stability, prompting the owner to cash out while the brand still commanded a strong buyer interest.
• Re‑investment focus — He earmarked 60 % of the proceeds for a new niche—eco‑friendly home‑organization products—leveraging his existing supplier relationships to accelerate product development.
• Valuation mechanics — The buyer paid a multiple of 3.5 × EBITDA, highlighting that clean financial statements, a stable ACoS, and a diversified ad mix are critical levers for maximizing sale price.
• Exit as a growth catalyst — By converting recurring cash flow into upfront capital, the seller positioned himself to launch faster, take on lower risk, and avoid the profit erosion that was beginning to affect the original brand.

How the Restart Process Works

1. Liquidity Management — The first move was to clear out the remaining inventory through Amazon’s “Clearance” program, converting roughly $150 k of stock into cash while sidestepping long‑term storage fees that would have eroded profit.