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Deciding how to approach the process of selling your e-commerce business can be overwhelming or even confusing if you don’t have the assistance of a knowledgeable website broker to guide you through. Inventory is no doubt required to run your business and you have probably established clear systems and processes to help you stay on top of all of that inventory.

It is frequently the case that you would include a normal level of inventory in the purchase price of your company when you decide to sell your e-commerce business. The primary purpose of this is to make a good faith effort to allow the business to sustain current revenues already being generated by the company.

This means that everything over this normal amount that you include in the purchase price has to be bought by the buyer in addition to the underlying business valuation. There are several different factors that must be incorporated in your consideration of your inventory cost, including:

  • Taking an inventory count and adjusting the sale price up or down prior to closing the sale with another party.
  • Valuing the inventory at cost. You also have the option of coping with an inventory amount that is higher than the normal level, which means that you might need to negotiate a price over that level.
  • Decide how the cost of the inventory will be factored into the sale using a percentage of retail price, the original invoice or a professional inventory firm.
  • Consider that not every piece of inventory is the same. Broken, aged or no longer in use inventory has to evaluated individually to determine if it could be sold and the price for these items would need to be negotiated separately. Frequently, this occurs by discounting the portion of the inventory, but this can also happen when the seller finances a portion and then the buyer pays for these items when it sells.

There are many different factors you can incorporate into the process of fine tuning and tweaking your business to prepare it for sale. The following factors can significantly enhance the value of your business beyond the inventory and current sales;

  • Predictable drivers of new sales.
  • A clean legal and financial history.
  • A high percentage of repeat customers and sales.
  • Traffic statistics that indicate a long history and regular traffic to your site.
  • Reliable and established inventory suppliers with back up suppliers established.
  • Potential for growth.
  • Documented processes and systems that are not reliant on you as the business owner.
  • A brand that has no legal, copyright or trademark concerns.

When thinking about selling your business, partnering with an established e-commerce sales firm can help you to accomplish many of your sales goals. A website broker should be familiar with the common tactics used to arrive at multiples, how to list your company online for sale, and how to vet potential buyers against who should make the short list for consideration. There are a lot of different factors that go into listing your company for sale, but you want the peace of mind and the confidence that your business broker is handling these processes as effectively as possible.

 

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.

 

Thinking about selling an Amazon business? Then there is no doubt that you want to take every step possible to present your company in a favorable light before moving forward and listing it for sale.

Getting Sales Help from an Online Business Broker

An online business broker can help you with all aspects of your Amazon business sale; including the completion of your Amazon business valuation and consider all the various factors that should be put forward when selling your company. Becoming a profitable Amazon seller is an exciting prospect, but it’s also one that may lead people to pursue other entrepreneurial or life-related dreams and goals after the business has become profitable.

Moving on to another stage of your life means getting as much value as possible out of an Amazon business for sale. Becoming a profitable Amazon seller puts you in the best possible situation to sell your company for a great value and move on with your life.

Since many different sales on Amazon come from third-party sellers, many buyers do trust and buy from third parties, meaning that it is a great time to cash in and sell your Amazon business. There are extreme advantages to being an Amazon seller and when you have already built up the foundation and are thinking about selling your Amazon business, you can easily portray these to prospective buyers by maximizing your profit.

How to Make Your Store Appeal to Potential Buyers

First of all, these buyers don’t have worry about setting up an online shopping website and they can leverage the traffic that already comes to Amazon which is around a 150 million people per month. In order to become a profitable Amazon business, you’ll probably have already built up many of the structures inside the company that will make be seen with extreme value on the market.

These include selecting the right niche, becoming a proactive marketer and being competitive and knowing the competition. If you start with just one product on Amazon, you can enhance your profits significantly by selling a whole range of items.

You’ll have to take a close look at the market to figure out what is selling well at first and make sure that you capitalize on the holiday season. Christmas time is when many people, who are third-party sellers on Amazon, make a great deal of money.

If you are thinking about listing your Amazon business for sale next year, for example, you might contact an online business broker now and begin putting in place the marketing strategy to enhance your sales during the holiday rush.

This will show your business as profitable as possible and makes it a much more likely buy for people who are contemplating purchasing an Amazon business. Selling an Amazon business does not have to be hard when you identify an online business broker who can assist you with a free business valuation and an explanation of all the factors that will go into your online business listing, you are in a much better position to approach your sale.