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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.

 

It goes without saying that more people than ever are contemplating both buying as well as selling an Amazon based FBA business. An analysis of the recent deals we have accomplished within our company reveals several important things you need to keep in mind about selling an Amazon FBA business. First of all, there are many more moving parts to selling an Amazon FBA business when compared to a content website or affiliate company.

What Makes Amazon Businesses Better Positioned for Sale

A content website, for example, will only have ongoing costs associated with getting new content up on the site. However, there are many more factors to consider in the sale and set up of an Amazon FBA business, including assistance for logistics, numerous suppliers, and advanced customer service systems to be able to respond quickly.

This is one of the most important things you need to realize and remember if you intend sell your Amazon FBA business.

Be Prepared for the Sale Process

Another thing to keep in mind when listing your Amazon FBA business for sale with the help of the business brokers at Website Closers is that you should not expect to receive the entire upfront price from the buyer. This is usually because deal structuring is recommended, and the deal structure needs to work for the seller as well as the buyer. Furthermore, these additional negotiations surrounding deal structuring will add delays to get the business sold and to get the deal done. Even when you sell a major seven figure Amazon FBA business, you shouldn’t expect to receive 100% of the sales price immediately.

You should consider that one of the only ways for you to sell your business through some form of deal structuring. This helps to prepare you for better negotiations when the time comes. The third thing to keep in mind when attempting to list your Amazon FBA business for sale is that more buyers are now contemplating buying such a business as a way to jumpstart their own brands. Buyers love the fact that your company might already manage a tangible and physical product, and already has all of the logistical systems structured. It might seem easier for them to establish an e-commerce or Shopify store with their own funnels to begin selling their products through various channels with their own store.

Or if the product is already developed and shown to be a winner, then the buyers can expand the business by using other marketplaces for that product. This means that the buyer can get a first mover advantage in buying these businesses for a good price, but they want to know that you have already done the legwork to make things easy for them and to show that you have a proven product.

Don’t hesitate to get help if you are interested in selling your Amazon FBA business. The experienced online business brokers at Website Closers are here to help you with every aspect of the sale from the due diligence all the way through negotiations.