E-commerce experts regularly grapple with the question of whether or not it’s time to sell your e-commerce business. Someone might typically come to the services of a website broker and feel that they might be ready to sell their store but are not quite sure if this is the right decision for them.
There are many different factors that might lead you to believe that it is time to sell your e-commerce store. First of all, you might no longer have the time to focus on it anymore or you find the aspects of managing your e-commerce store to be exhausting. Prioritizing other projects and being able to take the money earned from the sale of the business to fund those projects is another common reason.
A leading reason why people stop at this stage of the process, however, and don’t list their e-commerce store for sale is because they are concerned about giving up too soon and what it really takes to hand the reigns over to another person. Letting go of your business is not always a simple decision, but you will always want to have a base level of comfort and confidence in how you carry out this process and who you choose to help you with it.
You worked hard to build your company, which means that you want to ensure that you are making the best decision for you and for your business. The first thing to consider in deciding whether or not to sell your established e-commerce business is to determine your why. There are many different reasons, a few of which are mentioned above that might have led you to this initial decision.
Step back and consider what made you decide to sell the store in the first place. Evaluating all of your different options can help to provide some clarity and find some peace and finality over either choice of selling it or not.
The personal factors that led you to this decision can be sorted out when you take a step back and look at the bigger picture. Another thing to consider is the current status of your business. It would be appealing to the buyers if it were listed today or there are action steps you need to take in order to make it appealing to the marketplace.
Vetting potential buyers can be a complicated process and this is why many people hire the services of an experienced business broker to help them with it. In order to vet potential buyers, it is quite normal to have conversations with those possible purchasers about their plans for the business and why they themselves are interested in the possibility.
Working directly with Website Closers and experienced business brokers team allows you to tap into the power of a strong network of people who are highly interested in purchasing your business, removing many of the roadblocks in the sales process. The third thing to consider in deciding whether or not now is the right time to sell your e-commerce business and how you intend to transition.
There are many different steps you can take to ensure smooth ownership transition and the first is simply planning for it and making a big list of all the issues that you need to train the new person about. If you are worried about the possible errors that could arise from a mishandled transition, you should put together an overview of what you would like to see from the process and how you intend to manage it.
You can share this with the prospective buyer, who might become more confident after speaking with your business buyers and your business broker.
Are you interested in selling your e-commerce company, but you are not familiar with the process that you need to consider? Selling any e-commerce company doesn’t have to be difficult when you retain the services of a business broker. But the first decision that you’ll consider in this process is whether or not to sell your e-commerce company via a marketplace or a website.
There is no doubt that there are many different benefits to selling products online, which is probably what drew you into the process of doing it yourself. Reaching more customers than a traditional brick and mortar store and being able to sell at all hours the day greatly expands your potential to make profit. There are so many different e-commerce options, and as a result of that, people are looking to cash in and tap into the power of selling on an e-commerce website. Some merchants must consider this initial decision of selling on their own websites, such as an independent e-commerce website or selling through another company like Walmart, eBay, Etsy or Amazon. Determining what is most appropriate for your business involves thinking about the benefits and downsides of each.
There are many different advantages to selling on a third-party marketplace and this is a top reason why plenty of sellers use this option. First of all, it is simple to get started and maintain a business when launching on a third-party marketplace.
An online marketplace can simplify the process, particularly for new sellers. This is because the infrastructure is already established, and this saves the hassle and time associated with building your own website from scratch. Since no one individual seller owns an online marketplace, the payment and transaction details are handled by the marketplace.
This removes a lot of things from your to-do list and can make the process easier overall. Since many of these marketplaces already have established forms of traffic and plenty of people visiting their website, there are millions of shoppers already leveraging them to find the best deal. You can make an impact by tapping into the power of the traffic already established on the marketplace.
There are downsides, however, to selling on a marketplace. Since there are multiple competing brands on the same site, you must always be aware of how to stand out from everyone else who is trying to accomplish the same goal of stealing their market share. Your competitors might target shoppers who visit your individual listing and then place advertisements for their own products on your pages.
Whether or not this impedes your ability to do business, depends specifically on the competition intensity in any product category, which means that you might not get the easy sales or exposure that you are intending. Furthermore, people who purchase your products might never realize that you, as the third-party seller, truly exists. Most people who shop from these marketplaces, such as Amazon FBA, assume they are buying from that marketplace, even when it is relatively clear that they are purchasing from a third-party seller.
Because of these disadvantages, it is important to realize that you might want to do some additional steps to build a niche site and create your own brand awareness.
Selling your small business for the highest possible price is likely the result of many years of persistence and dedication. In fact, this might have been the dream when you launched your company.
But it can be very hard to find buyers for your business if you are not in a position to collect solicited offers or in a hot and popular niche.
The best way to gain access to a larger pool of qualified buyers and a more structured and efficient selling process is by working directly with an experienced business broker.
Much like a real estate agent, a business broker serves as a sort of matchmaking service to bring together sellers and buyers. The expertise of the right business broker can help you to get the highest possible sales price and make the process easier for you. There are several different ways that you can find a business broker.
Practice Your Own Due Diligence
Just as any prospective buyer of your company will do their own due diligence to complete research, you should too. Look at the broker’s experience, background and credentials. Have any complaints been launched against the broker, review the business bureau website and investigate the references provided by the business broker company. Make sure that you ask direct questions about whether or not they have handled this kind of business before.
Keep the Sale A Secret
If you are the chief person in charge of the company, avoid losing key suppliers and staff. Do not tell them that your business is for sale until you and the business broker are ready to move forward. The sale of your company is a very confidential matter and your business broker should have the same approach by ensuring all necessary safeguards are in place to protect the value of your company. One slipped word to your employees, supplier or customers that you’re selling could have negative repercussions for your business operations.
Be Aware of Upfront FeesBusiness brokers charge fees ranging from 10% to 15% commission, based on the sale price of your company. But be aware of any broker that is asking you for a significant fee upfront just to complete a business valuation or start any application process. Your business broker should be able to explain their individual process to you before you get started.
Consider the Marketing Plan and How This Will Influence Your Business Sale
Appropriately positioning the sale of your company to motivate and attract the buyers should be your top goal. Make sure that your business broker has a thorough marketing plan, including explanations about marketing strategies that could bring in a number of different types of valuable leads. Your broker should be able to walk you through how they’ve been in situations like this before and have helped people to prepare as effectively as possible. You should have a high level of confidence in your business broker’s ability to sell your company.
Since it’s such a personal issue, but also one that touches on your professional boundaries, you need to retain the services of someone you can trust and someone who has extensive experience in this field. Don’t hesitate to ask questions of the business broker during your initial conversation. You should feel confident and excited about the opportunity to work directly with a broker who knows exactly what they’re doing.
After you have developed an idea for your online store and put together a plan for the sourcing of a product, this alone in itself is not enough to do the heavy lifting for your Amazon FBA business or your e-commerce business. You can save energy, time, and money by understanding all of these issues before you even try to start selling online.
The first issue to consider in launching an e-commerce business is taxes. Every state in the country has different standards, rules, and expectations when it comes to taxes. You must be prepared to conduct your research and understand your target market, as well as how taxes will influence your overall selling and administration. Furthermore, consider the payment gateways available for different e-commerce businesses.
You should not feel restricted by the fact that many of these have limitations on certain types of services or products that you might want to sell. Evaluate all the different payment gateways available to you and make sure to ask if they have limitations around certain products. Some of the most common types of payment gateways include PayPal, Square, and Stripe.
Leveraging an Amazon FBA business means that it is possible for a person to purchase something on Amazon with any payment method that that company accepts.
Another issue to consider is you want your business, particularly if you intend to add a website, has to do with trademarks, patents, and copyrights. There are many different misconceptions about what each of these words mean, so it is a good idea to sit down with an experienced business attorney to understand the differences between these terms and how they can influence you.
Many shipping companies will post their shipping restrictions, and these should be carefully reviewed by a person who’s thinking about launching an e-commerce business. Typical restrictions include those having to do with nail polish, explosives, aerosols, alcoholic beverages, ammunition, cigarettes, poison, and perishables. Some providers may enable you to ship these restricted items but will ask for extra paperwork and fees. Your business may not be affected by any of these restricted items at all, but in the event that it is make sure you do your research about shipping options.
If you are holding substantial inventory and are not working through something like Amazon FBA, which is holding all of your inventory for you, you’ll want to consider the lease deed or zoning codes for your substantial inventory. There may be established prohibitions about running a business like the one that you intend to run out of your home. Zoning laws matter, and a knowledgeable attorney who is familiar with these can help you to avoid mistakes.
Now is the time to schedule a consultation with a business attorney. When it comes time to sell your company, the established business brokers can help you to accomplish your goals and make sure that you have access to a network of many prospective buyers.
Before listing your business for sale with the help of knowledgeable business brokers. You’ve probably done a significant amount of preparation work on your own.
You probably have multiple products listed inside your Amazon account and should have thorough business documentation and procedures to be able to pass it on to someone else sooner rather than later. The following stuff can assist you in preparation for transitioning your company to the new buyer of your business. Since you might be surprised when working with a business broker that you could sell your business more efficiently than you expected.
An offer might come in before you are fully prepared. Never be interested in listing your business for sale before you have taken the necessary steps to get a business valuation and to document your processes and systems to be able to hand the business over quickly if necessary.
First of all, you might want to consider opening a new Amazon Seller Central account using a different legal business entity. Then you could link the e-mail addresses in each of the new and old seller accounts. This is one way of notifying Amazon there is a connection with these accounts.
Our next step can make things easier for you, as well as the buyer of your new business, is to sell all of the inventory on the former account and then shift new products to the second seller account. Any items that are not selling quickly enough could be handled with an order removal. Take those products and add them into the second account.
Shipping the goods to the new Seller Central account and using the same details as before can eliminate one additional step for your business buyer. This means that all of the star ratings, reviews, and everything else stays the same. Once the new buyer completes his or her responsibilities in purchasing your company, you can provide the log-in information to the more recent Seller Central account.
Many different challenges can emerge when handing over your business. It can take additional days or weeks, depending on whether or not this person has a U.S. business entity created or not. Furthermore, Amazon Seller Support has to be contacted regarding the update of bank account information, tax ID, and more details on the back end of Seller Central.
Getting the support of a business broker can eliminate some of the most common challenges. Experience when attempting to sell your business so that you have the peace of mind that someone has handled all the details while you remain focused on other issues that are more important than you might expect.
The support of a business attorney could be essential to helping you prepare for this process from a legal perspective. Just as you would retain an experienced business broker to help you handle all other aspects of your sale.
Some people have gone through the process of creating their first product on Amazon and then also launching a niche site in the same space. When the niche site begins to grow, you can also use direct links on that page to sell on Amazon associates.
This skill of building niche sites could help you rank your company more effectively in Google. And then also tap into the power of that tool to grow your Amazon FBA business even more effectively.
Referring a high volume of outside traffic can help to grow your Amazon FBA business. Most of the sales of your products should come directly from the traffic on Amazon in order to be effective. The niche site, however, definitely should send additional traffic and help you to grow the business.
This additional aspect of your company can be instrumental when it comes time to sell your business because this is a bonus selling point to potential buyers showing that you have already established a site that has powerful search engine optimization tools and is already driving traffic to the Amazon FBA business indicates that you have significant knowledge and a tool that can easily be passed on to the other buyers.
After running this business for several years, you might decide that you would wish to invest your money in other ventures. Furthermore, the particular products that might have inspired your Amazon FBA business and development of a niche site might no longer be your key area of interest.
Many business owners identify that where they are most passionate at that point in time, things will tend to be most successful. While this isn’t a rule of thumb that every single person should follow all of the time, it’s a good idea to pick products and businesses that you’re passionate about. This will be reflected in the overall development of your business and your ability to sell it in the future. The support of online business brokers can be extremely helpful in developing a plan to address how to sell your business sooner rather than later.
The support of a business broker helps you to understand business valuation, tools and tips that you can put into place now that will help sell your business more effectively, the power of the business listing and the value of working directly with a company that already has established buyers who are interested in purchasing your product.
The more work you have done on the back end to make your company as competitive as possible, such as establishing a niche site, will make your company more appealing when it comes time to list it for sale.
Discussing your options with a business broker prior to deciding to move forward can help you identify whether or not now is the right time to sell your Amazon FBA business and all of the related collateral, such as your niche site. The sooner that you can identify a broker who has plenty of experience and talent in the field, the easier it will be for you to sell your company.
If you’re currently evaluating how to retain the services of an experienced website broker or business broker to sell your online company, such as an e-commerce store or an Amazon FBA business, you’ve probably already weighed the pros and cons of doing it yourself versus hiring a business broker.
The truth is that in many major sales it is beneficial to retain the services of a website broker who can assist you will all aspects of preparing your company for sale and the sale directly. However, not everyone is appropriate for working directly with a business broker.
There are trade-offs to using a business broker including the qualified professionals at Website Closers. One such trade-off is that you cannot sell just any old website. Not every website will have sufficient value to make it worth the broker’s time to invest in getting to know your site and preparing it for prospective sale.
Your site must be making enough money that it is valuable enough for you to sell and valuable enough for the website broker to sell to make a profit that is worth their time. This, of course, will depend on the individual broker’s requirements and specifics.
But you certainly should have invested some time in getting to know your own numbers and understanding that you are generating consistent revenue. For some brokers, this could mean that your website is making several thousand dollars per month consistently. Other brokers deal only with high-value websites that are making seven figures on an annual basis.
You need to do research about the business broker that you intend to work with to ensure that you have the right fit. If you just started your e-commerce site and have not built in a lot of time to promote or grow it, then you likely won’t be able to use a broker.
Furthermore, if you have an established business that has been around for some period of time but is not generating enough or consistent revenue in order to appeal to a broker, you likely won’t be able to use one. It could be better for you to sell your site on your own or through a marketplace. You might even be deciding to sell your business because it’s not making enough money yet, but make sure you do your research to figure out whether there are things that you can change. Some indications that you need to rely on a broker for the sale of your business include;
The experienced business brokers at Website Closers know how hard it can be to make the decision to sell your company, but once you have elected to do this you need the support of business brokers who know the landscape and who remain committed to doing what is in your best interests.
How do you know that now is the most appropriate time for you to sell your business? It can be a difficult decision to come to this point and it may require the assistance of outside professionals who can tell you whether or not your business is ready to sell. Sometimes wanting to sell the business in and of itself is not enough to translate over to a successful sale.
You’ll need to ensure that your market has appeal in the broader marketplace. For an e-commerce seller or an Amazon FBA business, there are knowledgeable business brokers and website brokers who can help you make this determination and ensure that you’ve considered everything before officially listing your company for sale.
Selling a business is notoriously challenging on your own but hiring someone to help you maximize your efforts can cut down a lot of the stress that you might face.
Understand the Overall Process Before You Begin
You must begin with business valuation as this will have implications for the remainder of your involvement in attempting to sell your business and can eliminate many of the most common questions that you might have.
Once you understand the business valuation process by hiring experienced business brokers like those at Website Closers, you will also understand that you need to allow for plenty of time.
It can take up to two months only to value the company if you are not working with someone who has a reliable and trusted process. After the business is on the market, it can take several months to sell.
Someone who is not familiar with the business selling process might have their company listed for up to 11 months or longer but working directly with business brokers like those working at Website Closers can speed up this process significantly because they already have a network of established and interested buyers.
Recognizing the methods to value the business directly is not necessarily required but it is important for you to consider what buyers will be looking at and how this can impact your overall business value.
Many business owners assume that the value of their company is based completely on revenue. However, if the revenue is growing but it’s at the expense of cash flow, this could damage the value of the business. Furthermore, you might not realize that there are certain metrics and steps that you can take now to enhance the business valuation. Being mindful of this and starting several months in advance of when you hope to fully list a company for sale will reduce a lot of the concerns and problems for you, giving you peace of mind that you have considered everything and are working directly with professionals.
Consider the way that you have structured the business. For example, an Amazon FBA owner should have done everything possible to remain competitive in this landscape of talented business owners to establish firm relationships with suppliers who can be trusted and to outsource or automate as many aspects of the business as possible.
Taking these additional steps has a significant benefit for everyone involved in listing the company for sale as well as choosing to buy the company. Prospective buyers see that you have done a lot of the legwork and are enticed by what you have to offer in this way.
If you are interested in leveraging your Amazon business and growing your business on Amazon FBA, one of the easiest ways to do so is to incorporate education into your daily life. Tuning in to a podcast can give you some quick ideas about what’s working for other people.
Perhaps you’re already swamped with keeping track of your inventory, making sure that you’re staying on top of your Amazon FBA game and dealing with the ins and outs of running a daily business. But one way to maximize and leverage your time is by listening to podcasts.
You can listen to podcasts while commuting, while carrying out your grocery shopping at the store, at the gym or during long walks that you take. You can even listen to Amazon FBA seller podcasts while you’re doing chores around the home. Listeners can catch up on shows that are easily downloadable via podcast format and stay on top of their business.
This is an excellent way as an Amazon seller to stay in the know about additional information and updates in the Amazon FBA seller world. There are a number of different types of podcasts that may be appropriate for an Amazon FBA seller and here are some you should certainly keep an eye out.
If you are contemplating launching an Amazon FBA business, you are joining an increasingly competitive pool of people who have realized that as third-party sellers on Amazon, they can sell products effectively and use many of the established customer service and shipping mechanism established by this e-commerce giant.
But there are many questions that you may have at the outset of launching your company, such as:
If you don’t wish to go through the challenges associated with launching an Amazon FBA business, you can tap into the power of an existing company, such as one that has already built a strong reputation on Amazon. Your Amazon FBA business gives you much faster way to launch off successfully because a person who is selling their company has already done much of the leg work in determining the demand and has established the systems that you can begin to use immediately as the newest seller by taking over their account.
What You Need to Know About Launching Your Own Amazon FBA Business?
If you decide that purchasing someone else’s existing Amazon FBA business with the help of a business broker is not the right avenue for you, you can launch your own business with a minimal investment. However, it is important to remember that how quickly you reap that investment back or begin to grow profits will depend on the leg work that you have done on your own and the types of products you have listed for sale. Having done this research, you will have a much better idea of what to anticipate and have realistic expectations about your business.
It’s not a lot of money to launch your own Amazon FBA business and you can usually get started for under $1000, but it can also take more money in order to test your market and determine whether the products you have selected are correct.
Things You Must Have in Order to Launch an Amazon FBA Business
There are several different aspects to running a successful Amazon FBA business that you must have in place whether you purchase someone else’s company or intend to launch your own. These include:
Tools and supplies include a printer, scale, boxes, computer, smartphone scanning app, and packing or shipping tape to close the boxes you’ll send to Amazon. The inventory you’ll need to consider will have to include at least $500 in seed money that can be used to purchase inventory.
Finally, you will need to invest in some form of training so that you understand how to launch your Amazon FBA business successfully. Because there are more successful sellers on Amazon FBA than ever before, it should not be hard to identify that there are many different programs, trainings, eBooks, podcast, and courses out there. However, selecting the one that is right for you is not necessarily easy.
You will want to do your research and get some feedback from people who have actually taken the course before deciding how to move forward on your own. When it comes time to celebrate your Amazon FBA business, you can leverage the power of business brokers like Website Closers to accomplish your goals.