Amazon has started allowing sellers in the FBA marketplace to earn affiliate commissions for the customers they refer their products to. This means that if you have a booming branded site, you can earn 4-10% affiliate commission on sales that come through that site (and others you own) of your products. This commission is not added to Amazon fees or deducted from your income and is therefore another lucrative source of income for the buyer that adds greater diversity of income. Now, let's discuss the steps you can take to prepare your Amazon business for sale.
Many of these steps you can take are optional, but the more you invest in preparation, the easier it will be to sell your Amazon business and the more you'll receive for your business. Now that you've seen what it takes to determine if your business is sellable, in addition to determining an estimate of its value (or potential value), you may be wondering if you should sell now or wait a while. The difference with an auction scenario is that there will be a fixed period for the company to sell, which will create more competitive tension among buyers. If you sell ten products, but one represents 90% of revenues and profits, you have only one product business.
Once the contract and terms are agreed with the buyer and seller and both parties sign the contract (provided by FE International), the transaction goes to the escrow prior to the transfer. If your Amazon fulfillment business is having a busy season, as many do, you should try to sell during or just after this period. This type of business works for those who make their own products, or for those who improve and improve certain products and sell them under their own brand. Business owners who have reliably withdrawn from trades can expect to receive a substantial increase in valuation multiple when it comes to selling.
However, selling an Amazon fulfillment business to a buyer that brings synergies to the table is difficult because they are hard to find. More than double the offer received when replying to a “we want to buy your Amazon” business email. An auction platform works well if you want to sell a small business very quickly and for an economic valuation. Younger companies are still salable, albeit to a slightly smaller buyer audience that has a higher risk tolerance.
If you're thinking of selling your FBA widget selling business, Morgan & Westfield is definitely the service for you.
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