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Main Considerations When Determining If You Should Sell Your Amazon Business

Main Considerations When Determining If You Should Sell Your Amazon Business

The turn of the century brought us technology that would seem unfathomable a few decades ago. We have access to information at our fingertips, and we can even go about daily chores like shopping or paying our bills without leaving the house. It was only a few short years ago that many still considered online shopping risky and unreliable. Over time, many online businesses flourished, and the skepticism towards online shopping started to diminish.

Nowadays, the number of people that prefer to do their shopping online is growing faster than ever, and so is the number of online shops competing to meet the needs of potential customers. As one of the first online retailers, Amazon is offering online merchants the possibility to compete within an established marketplace instead of struggling to make it on their own. Buyers prefer to purchase from an acknowledged brand that can guarantee products for its sellers like Amazon. Over time, selling on Amazon became a growing online retail niche with a worldwide customer base.

The sheer size of the Amazon marketplace and everything it offers merchants and buyers alike made it a trusted, go-to choice for people on both ends of the transaction. However, sometimes retailers find that for whatever reasons, their focus is elsewhere, and they want to sell their Amazon business. If you have considered selling your Amazon business, you might want to go over these considerations so that you make the best out of your decision.

What Are Your Reasons for Selling Your Amazon Business

Everyone who might want to sell Amazon business assets might have different reasons for doing so. Sometimes, people are going through life changes or no longer have the time and energy they were once able to invest in their business, so they would much rather sell it to someone who would keep it running instead of watching it wither away.

Whether you’re moving on to other ventures or need a solid break to reconsider your steps, quitting while you’re ahead is the best option possible when it comes to your business, your customers, and your potential buyers. If you can’t invest yourself in your business like you used to, your customers will be able to tell as your services and reviews go down, and so will the price of your business. If you have thought it’s best to sell your Amazon business on numerous occasions, you’re probably right, but even then there are certain factors you should consider.

Weighing In The Specifics of Your Amazon Business

Different types of Amazon businesses have varying odds of getting a desirable sell rate. For example, you would have to fulfill many buyer criteria to sell an Amazon reseller business, as they are usually harder to sell unless they have exclusive wholesaler business deals.

Your seller history as a private label seller would provide better odds for selling your business even though people can buy the same products at other stores simply because of the brand recognition your business enjoys.

Selling your branded products has the best chance of turning into a good business sale. Those looking to buy Amazon businesses especially value established brands with exclusive proprietary products that customers can not obtain elsewhere.

Making the Most Out of Selling Your Amazon Business

Regardless of your Amazon business type, if you want to sell your business, you have to consider some details about your business that will impact the final price, such as scalability, transferability, and sustainability. Your business age and its annual net profit, like EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) or SDE (Seller Discretionary Earnings) are important factors. You will also need reports on fees for ongoing costs, like software and tools, employees, or FBA expenses.

Transferring ownership of your registered brand and trademarks is a vital step in selling your business, but don’t forget to include costs and instructions for your marketing plan and any automation scripts or tools.

You should be completely transparent about all data concerning your business and include all information to enable the potential buyer to continue running the Amazon business with an uninterrupted flow during transfers.

Conclusion

There are many reasons why people want to buy or sell an already established Amazon business. Sometimes, it’s easier to continue running an already running business than start from scratch, so buyers looking to purchase an Amazon business are always searching for the next best option. Whether you’ve discovered a new niche you want to focus on, or you need more time or money for other endeavors, in most cases, it’s better to sell your Amazon business early rather than late.


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by Rebecca Jones // Contributor to Businessing Magazine.

Opinions expressed by contributors are their own.