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Preparing to Sell Your Amazon Marketplace Business

Posted by Brian Tumpane in Articles

You probably feel like you already have enough on your plate, maintaining profit and sales while keeping your business running. No matter how long your business has already been present on Amazon, there may come a time when you want out. To exit your Amazon seller account successfully, you’ll need to do plenty of legwork well in advance.

You will need to think about what could be a fair price and the unique assets that your company holds at this point in time. With so many factors influencing the listing price, doing your homework and getting a strong hold on valuation methods goes a long way.

If your Amazon marketplace business is already successful and you have sold relationships with suppliers and a steady stream of product that regularly gets sold, this in and of itself can be appealing to buyers. But to understanding what makes an Amazon business sellable, you should also have plans in place to cut down on your own involvement in this business so that you can step out and hand over the reins to the new owner.

You must understand one of Amazon’s key policies, which is that seller accounts can be transferred, but this process is usually made that much easier by hiring an experienced online business broker who knows the ins and outs of transferring an Amazon account.

Prospective buyer will be considering numerous different aspects for a profit stream that is predicable in the future. The buyer will thereby pay the purchase price as the multiple of anticipated profits. If you can show a consistent amount of product from reliable suppliers, in conjunction with the ability to list in many different relevant product categories and high customer feedback, your business may have major curb appeal to a prospective buyer.

A well-run seller account that has a strong history of positive comments from Amazon seller performance team, access to high demand or semi-exclusive products, proper operational processes already put in place and profitable sales, a major multiplier may be applied to the possible sale price. No matter how you determine to negotiate your online business for sale, you are selling the amazon based business rather than a legal entity in most cases. You’ll need to know a couple of key facts before moving forward with your online business sale, including that gross margins determine price, your accounting books must be in order for someone to do their due diligence and figure out whether you are accurately presenting information about the company.

You’ll need to document all of your business processes and put as many strategies in place in advance to show that you have tried to remove yourself from the business and ensure reliable product sources. All of these tools and tricks can be instrumental for helping someone who is in the position of getting ready to sell their business. An Amazon based business can seem exciting at the outset, but when it comes time to move on, make sure that you have all of the appropriate tools in place to make this transition as smooth and as effective as possible while retaining a profit.