Selling Amazon brands can be a difficult decision to make, especially if you've spent years building it up as your empire. If the time has come for you to sell your Amazon FBA Business, then there are many things that you need to consider.
There are many options available for those who wish to sell their e-commerce business, but it's not ideal to rush into any decisions without knowing all of your options and where to find information.
What Is Amazon Business?
Amazon Business is a business-to-business platform that offers a variety of products and services, including office supplies, electronics, lifestyle consumer goods, and more.
More than 200,000 e-commerce businesses in the US have registered for Amazon Business. Supply chain management, ordering, and purchase history for each business are enabled on the platform.
What Are Amazon Aggregators?
An Amazon aggregator is a company that specializes in acquiring Amazon businesses ranging from consumer health operators to category-leading brands. These amazon aggregators will buy your Amazon FBA brands for a set price, and then you can begin enjoying the fruits of your labor. Amazon brand aggregators offer many benefits to their customers.
Annual net profit in the Fulfillment by Amazon sector has increased exponentially in recent years, with growth driven by third-party sellers on Amazon's Marketplace platform.
American Pacific Group (APG)
APG offers various services and is an experienced broker in the "Disruptive" space. APG has been working with sellers in the D2C and C2C space for many years, and they have recently begun to branch out into larger companies suited to private equity investors.
In North America, APG focuses on businesses in the consumer products vertical, such as pet food companies and nutritional supplement brands.
Alpha Buyer
Scott Voelker, Alpha Buyer's CEO, bought his first business in 2013 and has since made over 25 million dollars for himself and his clients by investing in businesses on Amazon.
The company is partnered with Ingram Micro Inc (NYSE: IM), which spans 40 countries across 200,000 retailers, including 30 of the top 50 US retailers. They are based in Utah but work with sellers all around the world.
Avalara
With Avalara's acquisition of TaxJar, they now own an incredibly useful tool for helping you understand your tax obligations on Amazon. They also provide valuation tools that help you determine what your business is worth. They work across all 50 states and Washington DC with clients in over 150 countries worldwide.
DealFlow Media
DealFlow Media is a nationwide business broker specializing in the retail industry. Their team of experts can help you sell your Amazon FBA business for top dollar, as well as walk you through the entire transaction process from beginning to end.
Marketplace Seller Labs
The Marketplace Seller Labs team helps Amazon Sellers accelerate their businesses by leveraging cutting-edge technology, traffic generation techniques, and world-class tools available exclusively on Amazon.com.
They specialize in helping new online businesses get off the ground quickly and efficiently by tapping into existing opportunities found within Amazon's platform.
Seller Revolution
Started by a family of Amazon sellers, Seller Revolution has an impressive client base and boasts a full 100% satisfaction guarantee on their services.
Their team's background in finance and marketing distinguishes them from many other marketplaces that specialize in buying and selling businesses on Amazon.
Starline Group
Hailing from the beautiful island country of Cyprus (where we also operate HQ), Starline Group can help you sell your Amazon business for top dollar quickly and efficiently with no hidden fees or strings attached. They buy physical products as well as online affiliate sites and FBA businesses.
Supreme Ventures Limited (SVL)
Supreme Ventures Limited (SVL) is best known as the company behind the brands CJ, DealMax, and Sellersmart, but they also buy and sell businesses on Amazon. In addition to their online platforms, they have offices in Guyana, Trinidad and Tobago, Barbados, Jamaica, and the UAE.
TatvaSoft
TatvaSoft is a software development company that builds bespoke tools for entrepreneurs worldwide. They're based in Latvia but operate all over the world.
TradeGecko
TradeGecko is a cloud-based inventory management platform that helps you manage your business from anywhere at any time. They specialize in helping small to medium-sized businesses streamline their operations, including stock-keeping, order processing, and other administrative tasks.
Uproov
Uproov can help you add an extra layer of proof to your product listings with their picture-in-picture video technology. This means you can record videos of your products being sold on Amazon and provide visual proof of all the positive reviews you've accumulated.
Zentail
Zentail is a software solution built exclusively for e-commerce brands, stores, and marketplaces, including Shopify, BigCommerce, eBay, Jet, and Amazon. They work with companies in over 100 countries and boast more than 200,000 customers worldwide.
Their team works hard every day to create best-in-class products that help increase sales while saving sellers time and money on inventory and shipping management, shopping cart integrations, listing tools, repricing software, and more.
Considerations To Take Into Account When Deciding When To Sell
When you are considering whether or not to sell your Amazon business, certain considerations should be taken into account before making the decision. These considerations include:
- The asking price of your company
- How profitable your company is
- The amount of time you have before retirement
- Your current financial situation
- The skills and expertise of the people currently running your company
Considering these factors will make it easier for you to figure out who to sell your company to. For example, if you want to retire in a year and don’t have a lot of cash on hand, you might want to sell to a company that gives a lump-sum payment rather than an installment plan.
This way, when you retire in a year, you won’t be strapped for cash. If you can't decide which route is best for you, one option is to consult with the experts. They provide their clients with valuable insight from industry experts who can help guide them through this process.
How To Sell Your Amazon Business
Owning an Amazon business is a lucrative investment. But when it comes time to sell, you are faced with many difficult decisions. One of the factors that can make selling your Amazon business challenging is figuring out who to sell it to.
Whether you’re looking for a lifetime buyer or someone who will only buy the business for a limited period of time, there are several options available to you.
Step One: Find The Right Aggregator
There are many aggregators out there, but they each specialize in different types of Amazon businesses. Finding the right one for your Amazon business will make the process much smoother.
When considering which aggregator to go with, consider what type of Amazon business you have. Some aggregators specialize in just Amazon sellers, while others specialize in Amazon stores or mixed Amazon models. Depending on the type of Amazon business you have, it can be difficult to find an aggregator specializing in that type of business.
Additionally, consider how much experience the aggregator has with your specific type of Amazon business. You don’t want to go with an aggregator who is not familiar with your product and may not know how to best market it.
If they don’t understand your product well enough, their marketing efforts could lead to a loss instead of a gain for you as the seller. To avoid this mistake, make sure to do some research on prospective aggregators before settling on one for your needs.
Step Two: Determine The Sale Price
One of the first things you'll need to do is determine the sale price of your Amazon business. You can determine what your company is worth by calculating its value over time.
To calculate the present value, you'll need to know what your income will be like in 10 years, 5 years, and 3 years. After you have these figures, use them with an online calculator to see how much they are worth today.
It's also important to consider the factors that affect the price. For example, if your company has a strong following or provides niche products, it will likely be more valuable than those without those qualities. It's important to consider all of these options before deciding on a sale price for your company.
Step Three: Prepare For A Sale
When deciding to sell your Amazon business, the first thing you need to do is prepare for a sale. You’ll want to do the following:
- Set Clear Goals - You’ll want to set clear goals for what you plan on accomplishing before you sell your Amazon business. You should have a specific goal in mind that will be the milestone you work towards before considering a sale of your business.
This way, if at any point you feel like you’re not going to be able to achieve those goals, you can consider an alternative course of action.
- Get Feedback - You should also get feedback from a broad range of people about whether or not it would be a good time to sell your Amazon business before making any decisions on who to sell it to and when to make a move.
This will allow for more accurate feedback and help you make a better decision and avoid any regret later down the line.
- Develop a Timeline - Once you have decided that now is the time for your Amazon business sale, you must develop a timeline for what will happen next.
Many different things must occur for an Amazon business sale to go through smoothly and successfully. Developing a timeline is imperative so nothing gets missed along the way. There won't be any delays with the process at any point down the line during negotiations with potential buyers.
- Determine Whether To Sell Your Amazon Business - One of the biggest issues with selling an Amazon business is determining whether or not it is really what you want to do. If you’re thinking about selling your Amazon business, make sure that there are no other options for you.
Selling your Amazon business could be difficult if it is something that can easily return to your life in some way. If the idea of selling your Amazon business becomes stressful for you, consider other options.
Conclusion
Now that you have a better understanding of how to sell your Amazon business and the best ways to market it, you can move forward with selling your company. You should also be aware of all the different options available for companies looking to buy an existing one.
By following these steps carefully, you can ensure success in selling your e-commerce brands at the right price and in the right amount of time.
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