Amazon Business Brokers:  Selling Your Amazon Business

Are you interested in selling your Amazon business, but don’t know where to start?  We can help!

At Net Focus Media, we’re all about Amazon.  Our team manages marketing campaigns for our clients, all of whom are Amazon sellers.  Most sell using Fulfillment by Amazon (FBA) in order to streamline operations, though in some cases Fulfillment by Merchant (FBM) makes more sense.  Some are manufacturers, others develop private label brands, and others are distributors with unique advantages.  We also sell our own products through Amazon as well.  So we’re familiar with the idiosyncrasies associated with Amazon.  Even better, we’re really well connected with tons of other business owners who sell on Amazon and are actively looking to acquire new accounts, new product lines, etc. within Amazon.

Whether you sell FBM or FBA, private label or re-selling other brands, we can help.

Ideal prospects meet the following criteria:

  1. Revenue (sales) of at least $250,000 annually, up to $10 million.
  2. Net Income (profit) of at least $100,000 annually, up to $3 million.
  3. Amazon account in good standing.
  4. Authorized to sell all products being sold under your account.

If you meet the above criteria, please contact us and we can give you an idea of how the process works.

FAQ:

  1. What’s my Amazon business worth?
    This depends on many factors, but generally speaking we see multiples of between 1.5 and 4 for most Amazon businesses.  Key factors are:  is it FBA vs. FBM, is it a reseller vs. a private label, how many products are being sold, how diversified is revenue by product, how long have the products been established, are there any non-Amazon assets such as website that accompany the core business, etc.
  2. Does Amazon even allow you to sell an Amazon account?
    Yes and no.  Amazon generally discourages selling an “account”, though there are exceptions.  More commonly though, many buyers will already have their own account and are looking to take over products (especially for private labelers).  This does not pose a TOS violation with Amazon as what you are selling is the private label brand and it’s distribution access more so than the Amazon account itself.  So in that sense, its possible they will be buying your brand, your relationships with sellers and existing customers, and the rights associated with your product and ability to sell your product line (and inherit the rankings and reviews associated with your products) – rather than buying the actual Seller Central account itself.
  3. How much do you guys charge?
    We have a small initial retainer and then charge 8% of the sale price of business.  We’ll help you determine what is a fair valuation for the business, so we only get paid if you sell the business for a price you are happy with.
  4. What all is involved in selling my Amazon business?
    As a broker, our primary focus is in finding the right buyer for your business.  We leverage our connections and existing buyer pool to bring you as many quality offers as quickly as possible.  We do this confidentially and anonymously, so the public won’t know what business is for sale by name.  They’ll just know the general industry, approximate financial, etc. to ensure your privacy.  When offers arrive, we’ll then help you understand the offer and how it’s structured, and negotiate with the prospective buyer if needed.  Then once a “Letter of Intent” is signed and accepted by both parties, we’ll assist you through the buyer’s “due diligence” period where they will ask for information to verify that the business is what was originally represented to them.  If needed, we can also refer you to accountants and attorneys to assist with final details before closing, at which point the deal will be finalized and you’ll get your check!  Well, actually it’s usually a wire transfer 🙂
  5. Will I have to sign a Non-Compete?  Can I start up another Amazon business later?
    When you sell a business it is a deal that both parties negotiate, so everything is open for discussion.  Most commonly, we find that buyers are generally fine if you choose to sell on Amazon again after the transaction, so long as you are not competing with the product line(s) they just acquired – which would hurt the value of the asset they just purchased.

Ready to learn more about selling your Amazon business?  Just contact us and we can give you an idea of how the process works and work up a valuation of your business.

Topics:

  • How much is my Amazon business worth?
  • How do I sell my Amazon business?
  • Amazon business brokers
  • Amazon businesses for sale
  • Selling an Amazon business
  • Selling a private label products business
  • Buying an Amazon business