7 Critical Steps to Selling Your Amazon Business for Nice Profit

7 Critical Steps to Selling Your Amazon Business for Nice Profit


7 Critical Steps to Selling Your Amazon Business for Nice Profit –

If you’re considering selling your Amazon business, then you’re reading the right post.

Launching a successful eCommerce business is not easy. Your knowledge, hard work, and experience is something to be proud of.

Before we start to look at selling your Amazon business, it is important to first look at some frequently asked questions.

Is it Possible to Sell Your Amazon Business?

This is a question that most people ask. Amazon businesses, just like other businesses can be sold. Many people have sold their Amazon businesses without losing any reviews and ratings.

What’s more, Amazon keeps the whole transaction transparent, which helps both the seller and the buyer after the sale.

Read More – 5 Tips for Sellers Looking to Outrank Competitors on Amazon

Can You Own More Than One Account?

If you didn’t know, you can have more than a single Amazon Store Account.

A business seller can have two Amazon Business accounts where they can sell different products but the deposits will go to the same bank account.

This means that you can successfully sell your Amazon business and have all your reviews and ratings transferred easily.

Is There a Market for Selling Your Amazon Business?

With Amazon experiencing tremendous growth, most people are starting to see how lucrative this platform is.

Starting your business from scratch can be risky, difficult, and time-consuming. It, therefore, makes a lot of sense for entrepreneurs to buy already established Amazon businesses.

You can maximize the value of your Amazon business by understanding all that involves in transferring your business ownership.

Have a look at the 7 Critical Steps to Selling Your Amazon Business for Nice Profit –

1. Clean Your Financials –

You cannot properly value your business without first cleaning your finances.

Since many entrepreneurs start their Amazon business as a hobby, they don’t usually set a separate bank account, corporation, and credit cards for this business.

If you’ve turned your hobby into a successful business, you’ll need to clean your financials to get the actual value of your business.

2. Determining the Range Value –

The value range of an internet business such as Amazon business is determined by a lot of factors. First, you have to look at the seller’s discretionary earnings for the past twelve months, or whatever the amount you’re left with after paying all key expenses of the business. Getting this right is key to the entire process of selling FBA Amazon business.

When you get it wrong, chances are that a buyer will identify the error when doing due diligence and you’ll need to renegotiate the deal or fall apart altogether.

Factors that Affect the Value of a Business –

When it comes to getting the best price for your business, valuation plays a critical role. Independent business selling platforms often offer valuation services. Different platforms use different algorithms to evaluate online businesses. Here are a few factors that affect the value range of the Amazon business:

  •         The niche
  •         A trailing 12 month SDE
  •         The business age
  •         Competition
  •         SDE trends and total revenue
  •         The margins
  •         Transferability
  •         The trademarks
  •         The owner’s workload
  •         The brand ownership
  •         The economic conditions

3. Determine the Cost/Benefit of Selling Your Amazon Business –

It is important to understand all the factors involved when determining the value of your Amazon business. Be sure to know the costs and benefits involved in selling your business, and have a well-defined after-sale plan.

Three factors are involved in selling your Amazon business, including broker commission, taxes, and legal fees.

4. The Engagement Letter –

After deciding that selling your Amazon business is the right way to go, it is now time to review and sign an Engagement Letter with your brokerage firm. Reviewing and signing an engagement letter should not be complicated.

5. Marketing Your Business Sale –

There are two most-intensive steps when it comes to selling your Amazon business. They include:

  •         Preparing the marketing package
  •         Performing the due diligence process successfully

A marketing package is an in-depth overview of your business. It is what your broker presents to potential buyers. It can include when and how you started your business, the growth opportunities as well as what the workload entails.

A buyer needs to sign a non-disclosure agreement before being allowed to see the details of a Marketing Package.

6. Due Diligence –

Buyers need to do due diligence before deciding whether to buy a business or not. Here, due diligence is more than reviewing a marketing package, calling the business owner or the broker, and searching online to learn more about the industry or niche. It involves a deeper dive into proof of revenues and expenses.

7. Closing and Transition –

After finding a buyer willing to pay for your business, it’s now time to close the deal. Unlike when selling a physical business, where a buyer will need to sign some documents and walk away with the keys, the sale of an online business is mostly done online.

Bonus Tip: (Keep It Secret) –

It may sound non-transparent but keeping your intent to sell your Amazon business a secret is definitely a good idea. This is especially true if you have a warehouse and several workers. The last thing you want is for your workers to jump ship and abandon your business operations. This would mean order cancellations and a noticeable hit to your bottom line. 

This is why it’s best not to announce your decision to sell your business. While you do want to attract buyers, but you need to do it secretively. The best way to achieve that is to contact an Amazon business broker and have your site listed for sale on their platforms. These brokers usually vet buyers before revealing any details and they ensure only legitimate offers make their way to you.

Once the deal is signed, only then is it time to inform your employees and introduce the new boss. This allows the new owner to fortify confidence and retain most of the workforce, who would have otherwise quit fearing loss of employment. 

Also Read – Why Logistics is Necessary For Your Business?


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