You must be prepared with how to sell your Amazon FBA account before you initiate the valuation process. The more educated you are about what you can anticipate, the easier it will be for you to transfer your accounts to the buyer and to exit the business as quickly as possible. There are different dynamics involved in transferring every Amazon seller account, which is why we leverage our years of experience as online business brokers to help you figure out what is most appropriate when determining your next step and helping you to obtain the maximum multiplier and overall profit from selling your online business.
The support of an experienced online business broker, like those working at Website Closers, can give you peace of mind, confidence, and assurance that you are in good hands from the moment that you contact us. There are five different things you need to consider when listing your Amazon seller account for sale.
The first has to do with your gross margins. The price that you receive for selling your Amazon FBA account is largely driven by your gross margins. Which means it’s beneficial to remove any unnecessary overhead conflict, employees, travel expenses, or equipment. Often this is very minimal to begin with because Amazon FBA business owners have very few pieces of physical inventory.
The second step to preparing your Amazon FBA seller account for sale is to ensure that you have reliable product sources. Securing contracts to give you clear access to products that you source will help to enable a buyer to see the benefits.
The third step to listing your Amazon seller account for sale is getting your accounting and financials in order. This means having at least the last three years of profits and sales available. Take out any unexpected liabilities like customs, taxes, sales taxes, and unpaid supplier invoices as much as you can. Before removing yourself from the business, you need to document all of the business processes, including replenishing inventory, sourcing, accounting, remittance and collection of sales taxes, any provider solution relationships you have, and day-to-day operations. This will make the transition to the new owner as smooth and as effective as possible.
Finally, consider hiring an online business broker as well as an attorney to assist with the sale of your Amazon business account. There are many different aspects of conducting due diligence and determining valuation. The sooner that you have an online business broker and a lawyer to help you with every aspect of these sales, the easier it will be for you to effectively sell your business and move on to your next exciting venture. Don’t find yourself overwhelmed with the process of selling your Amazon FBA account. Instead, consult with our knowledgeable online business brokers.
Amazon not only welcomes new sellers to market their products on its platform but also assists in helping those merchants assess their account health. In 2020, the eCommerce giant launched the Amazon Account Health Rating (AHR) as a metric to measure your overall account health. Changes to AHR were introduced in 2022 to provide a more holistic rating, simplifying the methods for determining which factors could put an Amazon account at risk.
In addition to the new holistic metric, Amazon has stressed ways for merchants to work on improving their Amazon account health rating.
AHR measures the health of your account based on factors that include:
• Customer satisfaction
• Shipping performance
• Adherence to Amazon policy
The higher your account health rating, the more Amazon trusts you and views you as a good seller. A low rating means you need to act fast to address the problems with your account, so you don’t lose your right to sell on Amazon.
So, how can you improve your AHR? Understand the new Account Health Rating, and why it got revamped (it was done in accordance with seller feedback). Some important factors to consider include:
• The new AHR Holistic Metric, which is based on accumulated policy violations instead of a list of policy violations, gives sellers a better sense of whether they are at risk of suspension.
• The Level of Severity of Policy Violations, so the seller can prioritize what needs to be addressed first
Amazon is also helping sellers in another way, providing them with a team of dedicated support staff who assist sellers with questions about their account health queries. The account health specialists are available by phone or email, ready to help sellers stay compliant and keep their accounts in good standing.
The AHR metric is available widely across the US, Canada, and, since 2023, to sellers in other parts of the globe.
If you have an Amazon shop, you want to be certain you’re operating an Amazon Brand Store. That means it’s important to focus on building up a recognizable brand in the eyes of Amazon customers as a third-party Amazon seller.
Being a registered brand on Amazon enables you to set up your own website on Amazon, where you not only list your products but also provide visitors with additional information about your brand. Amazon gives you several templates to work with, although it won’t be as fully customized as your own non-Amazon website would be.
Despite that, a brand storefront is a smart option for merchants selling on Amazon, even if you also have your own website. A well-designed and optimized storefront will help you drive more sales on Amazon and build up your brand recognition.
Amazon also allows sellers to give their customers the option of subscribing for updates through their brand store, sending marketing material through Amazon’s platform, and most recently, doing email marketing. These are all tools for building meaningful and long-lasting brand recognition. It also helps your store rank higher in Google search engines. It helps that Amazon already dominates Google searches, being a high-authority site that Amazon merchants can piggyback off. That’s free traffic coming directly to your store.
To get the best results, be certain to optimize your Brand Store. Optimize it for the right Google keywords to boost sales and brand awareness. Determine your focus keyword, particularly the solutions your shop provides for customers.
Before you sell your Amazon shop, be certain you maintain an effective Amazon inventory management system. It’s important to ensure you have top-selling items fully stocked, and you need to be certain you’re not overstocking low sellers.
Inventory management at your Amazon store is about having a procedure in place for tracking, monitoring, and controlling the flow of products in and out of that store. You need to be able to successfully forecast demand when it comes time to place orders with your suppliers, know how to store and distribute products through an efficient process to avoid stock-outs or overstocking and meet customer expectations
A lot of Amazon merchants rely on Fulfillment By Amazon, which gives them access to the platform’s advanced inventory management system. FBA has very effective algorithms that take into account factors to forecast customer demand, including:
• Cost of goods sold
• Shipment times
• Amazon’s internal data
• Your Inventory Performance Index (IPI) score
You can maintain a solid IPI score by restocking best-selling items so they don’t go out of stock and ensuring healthy inventory levels.
Having a higher IPI score provides you with benefits that include lower storage fees, additional storage capacity at fulfillment centers, and opportunities to provide customers with faster shipping options.
Everyone knows how important customer service is to your brand, and a great advantage of using Fulfillment By Amazon is that Amazon handles all customer service inquiries, and provides customers with the kind of fast care that buyers have come to expect.
But how important is Customer Feedback?
Two words sum it up: A lot!
As Business Insider discovered during an analysis of Amazon reviews, a product that gets one review is 65% more likely to be purchased than an item with no reviews. The survey of customers found that Amazon reviews are more highly trusted than other types of reviews and that positive reviews can increase your sales by 20%. Reviews count!
Knowing that some shoppers are reluctant to buy a new product if no one has reviewed it yet, encouraging buyers to review their purchases is important. That gives shoppers a certain reassurance that they’re purchasing a quality item. The opinion of others counts.
The bottom line: the more reviews you have, the more sales you will get as it makes people more comfortable buying from you. A large number of positive and enthusiastic reviews is also a sign of a high-performing item.
Reviews can also become one of your most effective marketing methods.
Can you sell your Amazon seller account? Absolutely! Investors are looking for top-performing eCommerce websites to buy, and many of those investors understand that Amazon can be a very lucrative platform for third-party sellers.
If you’re getting ready to sell your Amazon seller account, the smartest first step you can take is to find an experienced Business Broker like the professionals at Website Closers. Our brokers have sold over one billion dollars worth of online businesses in every conceivable industry and size, and the sale of your Amazon shop is only going to get stronger when you have one of our skilled brokers at the negotiating table with you once you find a qualified buyer.
Selling an online business can be challenging, and that’s true of Amazon-based businesses. Business brokers understand the process, they can provide you with firsthand knowledge and expertise on selling your Amazon seller account. Our brokers have assisted plenty of successful Amazon sellers and can guide you through the entire process. That includes the legal considerations, and how to find a qualified and reputable buyer, and how to conduct the Due Diligence process once you have a buyer.
At Website Closers, we’ve got you covered. Selling your Amazon seller account can be a profitable transaction. We also understand why merchants want to sell their Amazon seller accounts. We understand that you’ve invested plenty of time, effort, and money into building your business on the platform. When it comes time to sell your Amazon seller account, we know there are multiple reasons why someone might want to sell their Amazon seller account, such as retirement, a focus on new business ventures outside of Amazon, or financial reasons. We are here to help.
You can definitely sell your entire online business operation, including your Shopify site and your Amazon Marketplace page, to an investor. Selling your Amazon shop is completely legal.
But it’s also important to know that Amazon requires you to file for a change of business ownership after the sale. You will also need to have your shop registered as a business and obtain permission from Amazon to transfer the account. This applies to business accounts only, since Amazon prohibits people from selling their personal accounts.
If you’re looking to retire or shift to another business venture, knowing how to sell your Amazon seller account safely and legally is important. The sale of a profitable Amazon account can prove to be very lucrative for the seller. The business brokers at Website Closers can assist with that since our brokers have managed the sales of thousands of Amazon shops over the years and understand how to guide you through this process.
Some sellers wonder how old their Amazon business should be before they can sell it. Good question. Amazon businesses usually get stronger and more appealing to buyers as they age, developing a more loyal customer base, acquiring brand recognition, and watching its profits increase. That demonstrates the stable operations framework of your business.
But even newer Amazon businesses can be appealing, particularly if they’re scalable. New third-party merchant shops getting promising sales are ripe for growth opportunities, making them appealing to buyers. The bottom line is that once an Amazon business has started to make a decent profit, it can be ready for a sale, regardless of age.
As you’re getting ready to sell your eCommerce business, a key question you’re likely to ask yourself is, who would want to buy your Amazon business? There are quite a few entrepreneurs and investors interested in successful Amazon shops because they know the massive audience that Amazon has.
While it often depends on the size and type of Amazon business you have, there are buyers for both smaller businesses valued at less than $1 million and prominent brands valued at $3 million and above. Amazon business aggregators often acquire multiple Amazon brands, and then scale each operation successfully.
If you’re interested in selling your Amazon business, a great place to start would be to reach out to the professional business brokers at Website Closers, who can guide you through a sale when you’re ready to sell an Amazon business.
If you’re asking yourself, can you sell your Amazon seller account, tap into the experience our brokers have in helping sellers market and close deals on a host of online businesses.