Amazon has gained traction through the years because of the tested system that they use to connect sellers with buyers. With such effective systems in place, they have pioneered the field of ecommerce and developed one of the most inviting operations that allows people to do everything at their own convenience and create a business that actually pays great profit.
Are you new to selling on the Amazon platform? Or are you an experienced seller but in search of a new strategy to adapt and bring your Amazon business to the next level?
In whatever stage of seller status you find yourself, the steps we detail here should serve as your ultimate guide to successfully selling an Amazon Business.
First off, let’s be clear: this is not about selling on Amazon. This is about selling “an” Amazon business.
This means selling your Amazon Business to an Amazon acquisition company. There are many different reasons why Amazon business operators may explore the option of making an exit from their FBA business and pass it the management onto professionals.
This does not mean that you have failed as an Amazon seller. On the contrary, it can even lead to more success and open doors for new opportunities. You may want to move forward, perhaps to greener pastures or a more enticing business venture. Some Amazon sellers simply aren’t cut out for retail ecommerce and want to pursue other endeavors instead. There’s a myriad of reasons
Selling an Amazon business to an acquisition company is like finding an investor who is passionate about your company. From the buyer’s perspective, you want to make sure that your investment is well thought out and will not go to waste. Because of this, as the interested seller, you need to convince the acquisition company that your business is worth every penny and has growth potential.
If you’ve ever wondered how to sell your Amazon business, here are some points to consider when persuading acquisition companies of the merits and possibilities your store may hold.
One: Make Sure That Your Amazon Business Sells
There are multiple factors that will come into play as the value of your seller business is being determined. Acquisition companies do not focus solely on your annual income. Some look at the consistency of sales and historical sales over periods of time. Keep in mind, an irregular dip in sales doesn’t necessarily drive away prospects; Amazon aggregators like UmbrellaFund have built-in resources and a team of experts ready to scale your Amazon business. Aggregators need assurances that your brand has the right market reach and gets positive feedback from customers, which is often indicated with consistent sales.
Consistency in sales is often measured in terms of daily sales. A seasonal business may record extremely high sales at key points, but this can be deceiving, and once daily sales over a year are evaluated, true sales potential can be evaluated. Usually, the more in demand your products are for the whole year, the more appealing your Amazon business is for an acquisition company.
Two: Think Long-Term
What are you selling? What particular category of sales does your business belong to? Does the niche you sell in have long-term potential to outlast trends?
As mentioned earlier, consistency of sales usually depends on the product and category. As noted earlier, if your niche is related to a specific season or holiday, then the flow of your sales would be limited.
However, if you have such a hot item that a few months’ worth of sales more than makes up for the rest of the year with relatively low sales, then you should find that selling your Amazon business comes easily. And sometimes, you need to think outside the box to scale your business and catch the eye of aggregators. There are some entrepreneurs who, instead of considering a seasonal item as a hindrance to the growth of their business, have used this very factor to fuel the market’s interest. They expand their product range: maybe there’s nothing related to Christmas that’s marketable in July, but your FBA store can become the go-to holiday shop, and hit peak sales multiple times throughout the year. Now you’ve defined a new niche and grown to meet demands the whole year.
Whatever product you sell, it must exhibit longevity in the market. This means to avoid investing in trending items. Remember fidget spinners? These may have seemed tempting at first, selling like hot cakes, but they were a one-hit wonder whose time went just as quickly as it came. Follow market trends to discover items that grow consistently and will be useful in the future.
Three: Build Your Brand
How well known is your brand on the Amazon platform? Are shoppers actually looking for your brand when searching for a particular product?
Establishing a trustworthy reputation as an Amazon seller will help your brand get to the top. Receiving great reviews from your past buyers will also make your brand a reputable name that people will seek out when searching for items under your category.
You want to gain recognition among competitors’ products, which will make you stand out among an often saturated market. The more headway you gain as a popular product with positive customer reviews, the higher you’ll climb on search results. The level of trust will accompany that, and you may be able to build a solid seller business that not only captivates consumers, but also interested investors.
Picking the Right Amazon Acquisition Company Counts
The truth is, there are several Amazon acquisition companies out there that are in search of Amazon businesses to buy. The fact that they have the investment to put into your business and an established system in place, you can be sure that if you follow our previously mentioned steps and make and market products that sell, think in the long-term, and build your brand, an aggregator will provide your Amazon company the boost it needs.
Nonetheless, it still counts to understand the background of the Amazon acquisition company you hope to engage with. Are they trustworthy? What sectors do they have experience with? Have they acquired similar Amazon businesses in the past?
These are only a few of the many questions you could search for as you read through various Amazon Aggregators. Find a company that suits your vision and can scale your business as you had wanted, allowing you a lucrative exit. Make everything clear with your target company’s management. This will help lay down the agreements openly. While your say on this process may be limited, there’s peace of mind in knowing what you might be able to expect in the future of your business.
Finding an Amazon Aggregator is a safer bet than looking for an individual investor on your own. If you have questions about selling your Amazon business and would like to get a valuation, UmbrellaFund offers an express valuation and we’re happy to chat with you and guide you through the process.