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Third Party Amazon Business Sales Booming; Time to Sell Your Amazon Business?

Posted by Dipen Mengar in Articles

Ask a pickleball expert who launched his third-party selling business on Amazon why he thinks Amazon is the wave of the future and he will give you multiple different reasons.

That person is the owner of Amify, a Virginia based company that is one of more than 3 million third-party sellers who use the platform to sell their products. Increasingly, more of these business owners are looking to sell an Amazon business after it’s become profitable.

Like many owners of third party selling businesses on Amazon, the ease and reach of Amazon make it a top contender for e-commerce. It’s easier than ever for people to jump into selling on the platform, turning around massive revenue and solid profits. For those who don’t want to do all the research of figuring out what products to sell and how to list them, buying an already-established Amazon business is a great route to pursue.

That’s good news if you’re thinking about selling your Amazon business. Selling an Amazon business is a hot topic these days because so many buyers want in and so many sellers may have kickstarted an entrepreneurial spirit to pursue another venture.

Launching into the Amazon marketplace is a great way to generate buzz and profits quickly while also deciding to sell your Amazon business after an appropriate period of time has passed.

The growing dominance of Amazon led Amify’s founder and only owner to jump into what he considers a rare opportunity. More than $333 billion in merchandise is sold every single year and two-thirds of that is sold by renters like Amify.

In fact, Amify’s revenue for 2017 is $33 million, including fender guitars, A-6 shoes, telescopes and binoculars and more. Approximately 90% of the revenue for the company comes directly from being a third-party seller on Amazon.

When is it Time to Sell an Amazon Business?

More companies that are achieving fast success are able to cash out quickly when selling an Amazon business. Selling an Amazon business typically requires the insight of an online business broker who has been practicing in the field for some time. The biggest cost for these types of companies are goods that are purchased and then are resold on Amazon, followed by the labor force investments.

The typical profit for Amazon retailers is 3% to 5% of gross sales, which means that Amify’s profits could be somewhere around $1 million. The company owner says he is putting every cent back into the business. Ultimately, this can lead to selling an Amazon business when a company owner decides to move on or to invest in other business opportunities.

Generating fast revenue and a brand’s name are just a few of the benefits of using third party selling on Amazon and the value can be even higher for a company owner who decides to sell an Amazon business. If you have questions about selling your Amazon business, consult with an online business broker.