Buying and Selling Your Amazon Business: When is the Right Time?

This past 2020, eCommerce has taken a large step onto the main stage of people’s perceptions. Buying and selling products or services online has become a large part of people’s lives.

This is mainly due to the current pandemic that has deterred many people from leaving their houses for their own safety.

One of the biggest eCommerce platforms out there right now is Amazon. While there are many other platforms in the market, Amazon has a leg up on the competition.

One of the reasons is Amazon’s branding and reputation. It is easily recognizable and has been in the game for quite a long time. Another is infrastructure. The years of experience that Amazon has spent in eCommerce gives them a distinct advantage that other competitors are struggling to catch up to.

Furthermore, Amazon has made the process for, not only buying products online, but starting an online business extremely easy and convenient. With the pandemic looming above everybody’s heads, an online business is a great way to stay in the financial game and build something for yourself.

One path to success is embracing the grind and struggle of opening a new Amazon business. Of course there are a variety of things that you can follow out there that can improve your chances of succeeding. These include things like branding and even utilizing ads.

However, there is another way to jumpstart your online business though. This is via the purchasing of other Amazon FBA businesses that can jumpstart your own main business.

Consequently, if your business isn’t doing so well but you have a few things working for you, why not put that business up for sale and help others with their businesses?

The buying and selling of an Amazon FBA business may be simple, but finding and obtaining the right value for these businesses is the tricky part.

The Howard Thai team is here to help you out by discussing what to look for when buying and selling Amazon businesses, as well as knowing when the right time to make these moves is.

As previously stated, Amazon’s is on the rise in the eCommerce industry. It is showing no signs of stopping, with growth projected to keep pushing the ceiling further as the years go on. It is a great time to get in the game and open your business.

There are many reasons why buying an Amazon FBA business is better than just growing one. For one, it is branding. With so many businesses out there, branding is essential in differentiating your business and getting it noticed.

There may be some online businesses out there who already have a brand that people recognize and consistently turn to for particular products. Business buyers can acquire this brand and use it as a good foundation for your own business and products.

Another thing that you are investing in is the general logistics of the business. How well is it put together? If the business you are eyeing already has the logistics and the marketing downpat, then it becomes a huge advantage for your own.

One example is if you have a huge email list of people who tune in to your automotive blog. If you spot an Amazon FBA business that successfully sells car wax, then you can buy that business and immediately sell it to the people who follow you.

At the same time, you can introduce some new products that are in the same niche and increase your sales further. This is considered a previous advantage that you can capitalize on as the marketing of your product is already in place.

Naturally, the buying of an existing Amazon business takes place if a person wants to jump the cue and start off with an already established brand.

Thus, this takes place if the buyer has more money than time to spend. Most business owners won’t have the capital to purchase other businesses. As such, they’ll just stick with the process and nurture their new business.

If you do have the capital though and want to start selling for profit as soon as possible, then buying an existing Amazon business is the answer you are looking for.

Another reason to buy an existing Amazon business is to ensure that the business doesn’t fail when it launches.

Just like any other business, there is tremendous risk involved when a new Amazon FBA business is opened. The risk is always there. However, if you plan on purchasing a successful business that is already a few miles ahead of the starting line, you already lessen the risk for your own business.

If you are looking for an Amazon business to scoop up, consider these factors:

• The origin or source of their product
• The sales history of the business
• Product reviews and customer testimonials
• The expenses related to the business
• The reason why they are selling their business
• Inventory

Sometimes, reality and the universe just slaps you hard in the face. We don’t know where life’s twists and turns could lead, but if you own an Amazon FBA business, things could “just happen” that would require you to sell your business.

It could be that the Amazon business just isn’t growing as fast as you would hope. It could also be that you just can’t afford to keep up with the continuous costs of growing your Amazon FBA business.

There could also be a case of something happening in your life that requires you to allocate your finances to other more important things. Finally, you could just want to get out of the online business game.

All of these are valid reasons for wanting to sell your business. If this is the route you are going, you could make it happen in several ways.

The first thing you need to do when you want to sell your business is to firmly decide that you want to. When you move forward with this impetus, there should be no turning back.

After you decide to sell your business, the next thing you want to do is consolidate facts and figures about your business. You have to value your business in order to sell it for the right amount.

An easy way to get a valuation for your business is to first get the annual earnings of your business. After that, the general rule is to multiply it by 1 to 3. If your annual earnings is $300,000, you could potentially sell your Amazon business for $600,000 to $900,000.

Apart from this valuation though, you’ll want to put together various figures as mentioned previously. These figures include things such as the various costs included in running your business (marketing included), a sales history, the price of the products, and more.

The goal is that you’ll show these pieces of information to prospective buyers. If the figures are good, it will entice the buyers and even push them to proceed with the purchase.

Next, you’ll have to find your buyer. You can take this upon yourself by looking for people who are in the market for a business, or those that could potentially benefit from buying your business.

Other ways to find buyers include going to a broker, or heading to the many auction platforms available right now.

Once a buyer or buyers have been found, it is time to negotiate. Both sides will try to play with the price as both parties want to get the most value out of the transaction.

When the negotiations have been done, the only thing left to do is proceed with the selling. It may also be a good idea to train who bought your website as a gesture of goodwill. It also ensures that they are being set up for success.

Amazon will continue to play a massive role in people’s lives. Online businesses will continue to open up, and more importantly, thrive.

Opening up an Amazon business is very easy and convenient. It is a legitimate opportunity for people to make a few extra bucks, and even garner success in life.

However, we hope that what we have discussed about the buying and selling of Amazon businesses has made you realize that there are more options available than just grinding for a successful business or waiting for your business to fail.

Pay attention to everything that is happening in the market, with your store, and in your life. Understanding the right time to buy and sell your Amazon business could spell the difference between succeeding and failing; between making a profit and going home with empty pockets.

Good luck with all your Amazon business endeavors!