If you’re an Amazon seller and ready to take the next step in your professional life, then you’ve probably considered selling your FBA business. This may not be as easy as one, two, three. Finding the right buyer, or Amazon aggregator, for your e-commerce business often takes time spent researching and corresponding to find the right buyer.
You want to make sure that your business is liquidated at the most favorable price possible. To accomplish this, you need to fully assure and prove to the buyer that they need for them to be convinced to actually buy out your business.
In this post, we will discuss five steps that you should consider as you prepare your FBA business for acquisition.
First, why and what do you need to prepare before you actually go through the process of selling your Amazon business?
If you are a seasoned Amazon third-party seller, then you should have plenty of experience which will speak to the strength of your business and solidity in the market. You can reach out to investors and show them what exactly your business has to offer them.
As an FBA seller, when selling a product, you usually try to put yourself in the customer’s shoes when determining marketing strategy and listing content specifics. The same should be true when it comes to selling your FBA business. No matter who you decide to sell to, you need to consider what is the most important aspect a prospective buyer would want to see in an FBA business.
The more prepared you are when it comes to presenting financial statements, historical sales data, and other details pointing towards the viability of your business, the bigger the possibility that you will receive a satisfactory offer in exchange for your business.
STEP 1: Be Certain of Your Decision
Selling your FBA business does not happen in a single click or day. It takes time, and time should also be dedicated to careful consideration making sure that your decision is the right one for you.
The process of preparing your business and making it attractive enough for prospective buyers can be tricky or at times drawn out. Don’t despair, it takes time and effort but often the reward at the end of the road makes it well worth it.
So, once you make the decision to sell your FBA business, make sure to stick with it, then transfer your efforts to carrying out all tasks until the sale is complete.
STEP 2: Be Transparent
If you have an Amazon business that is run by a team, you need to consider your employees when selling, too. Be careful to make sure that they are not left out in the dark, trying to secure them a position in the future of the company. If a transfer of employees under new management is not possible, then at the very least, always be upfront and direct about your plans for the business. You don’t want to burn bridges with people who have dedicated time and effort to building your company.
Often, an FBA business that comes with a built-in team actually increases the value of the business, especially because the successful systems are already established and the buyer acquires an intact operation.
As a conscientious business owner, you need to be transparent about the sale with your employees. This will make it easier for them to make decisions about their own future, if they need to look for another job to explore their options. You also need to be clear about your intentions and those of the aggregator, especially if you intend to sell the business along with the service of the whole team– therefore assuring them of their job security.
Another consideration when it comes to transparency is all the applications, software, and operations that are used in your Amazon business. Put everything in writing to avoid any confusion in the process of completing the transaction.
STEP 3: Create Your Performance Profile
Impress your buyer. Buying an FBA business is a huge investment to consider. Whether you are targeting an aggregator, a broker, or direct to an individual to take notice of your business, you need to make sure that they are impressed with your portfolio.
How do you make a good impression when selling your Amazon business?
Prepare all documents and data to show and prove the value of your FBA business. Make sure to defend your brand and your products as you establish this portfolio.
Give prospective buyers as much useful, convincing information as possible to attract quality buyers. Remember, it is not the design of your portfolio that matters, but the content inside, proving your competence in the business and the status of your sales which will assure your buyer that their investment is a great choice, guaranteed to earn them more in the future.
STEP 4: Solidify Your Financial Status
Financial statements, profit and loss analysis, and other economic data should be readily available for interested buyers to see. More often than not, this is what Amazon aggregators look for the moment they are offered a business to consider buying. From your profit and loss statement to your balance sheet, your financial statements basically tell the whole story of how you run the business and if your approach to sales is actually working.
Along with this, you also need to open to your buyer the strategies you use in business. This will give them a fair chance of determining what adjustments they could make to ensure the profit capacity of your business once they make the purchase final.
STEP 5: Pick the Right Company to Sell To
At times, it’s all about the right match. When selling your FBA business, you should engage with an acquisition company that understands your brand and respects your business goals.
For a speedy valuation of your company, and to get a clearer picture of how to sell your FBA business, you should contact an experienced aggregator that comes equipped with a team of knowledgeable Amazon experts. Umbrella Fund was founded by a group of individuals who have themselves experienced successful 7-figure exits from FBA businesses as well as grown newly acquired businesses.
The stronger your business is, the better it will look like to your buyer, so once you make the decision to sell and start exploring options, don’t let up on the business operations. If anything, you need to use all your efforts to make sure they stay strong and grow. It won’t be as easy to sell something that appears to be slowing down. Keeping your motivation high up to the point of sale is critical as it may also determine the agreement that you and your buyer reach.
Take your FBA business to the next step, and open the door for the next venture, whether that means professional or personal, post-sale you will have a world of possibilities.