The Three Types of FBA Businesses You Can Sell

Selling an Amazon business is likely to be much easier when you have hired the support of an experienced online business broker. Most people begin their search with the question; can I sell my Amazon business? The short answer to this question is; yes.

Even if you know that now is the right time to open to the possibility of selling your company, it’s the decisions you make from this point forward that can influence your ability to get maximum value on your business sale.

Is it Time to Sell Your Business?

Most people who have a successful third party selling business on Amazon will be eligible to sell that company and receive compensation after identification of the right seller. There are three primary types of Amazon FBA business organization and it is important to realize which one of these applies to you before you begin, in order to get the most out of the selling process when hiring an experienced online business broker. These three types include private label, re-seller and proprietary products.

Private Label

If you have your own brand, but exclusive contracts with wholesalers to sell on Amazon, it might be much easier to sell this type of a business because you’ll have some leverage and this is more appealing to buyers.

Re-Seller

You may be purchasing products wholesale and make a margin while selling retail on Amazon. This may also be referred to as a model known as retail arbitrage. This type of business can be very difficult to sell even if your profit amount is high. There are a number of reasons why this version of an FBA business is much harder to sell.

This includes that supply can be an issue, that it is highly volatile since there is no method to appropriately control the amount of competition, and because a buyer is only essentially getting access to your seller account and not reaping other benefits that would typically be pursued in this type of situation.

Proprietary Products

If you have created a popular product or a formula or you have made a popular product’s formula better and this is unique to you and your brand, this is a gold standard in terms of a sale because buyers are willing to pay a premium. Your business is more defensible over the long term because you are the only one who sells this specific item. You may be confused about which one of these models apply to you.

Tips for Selling an Amazon FBA Business

It is very convoluted to figure out the exact steps necessary to sell an Amazon FBA business, which is why so many people turn the services of an experienced online business broker to determine the most appropriate way to go forward. An online business broker will have extensive experience in this field and be thoroughly knowledgeable about the negotiation process and the identification of the right type of buyers to begin with.