How to Sell Your Amazon Business Fast!

Over the years several clients have sold to Aggregators. They made it so easy for sellers as they “spoke their language” and understood the dynamics of this industry.

However, we all know that Aggregator multiples have fallen significantly as they consolidate their portfolios and restructure debt.

Indeed, many have exited the market – some even selling their acquisitions back to the original owners.

Meanwhile, traditional brokers continue doing what they’ve always done, matching buyers and sellers.

Even before the Aggregator boom, e-commerce sellers complained these brokers didn’t understand the dynamics of online businesses and did a poor job representing them. Sure, great on bricks and mortar but that’s where it ended.

So, it was a breath of fresh air to speak to Quiet Light at an event earlier this year. They are a team of entrepreneurs-turned-brokers specializing in all things to do with online business exits including Amazon.

Finally, a broker that acknowledges all businesses are not the same and nor are online businesses. Amazon is a beast all on its own!

Here’s a summary of one of their blogs on Amazon that we feel is well worth a read…

In the restaurant industry, there’s a mantra: “Slow down to speed up.” It’s a reminder that acting thoughtfully and deliberately can actually save time in the long run. This principle applies just as much to selling an Amazon business as it does to working in a restaurant. 

Rushing can lead to mistakes and lost value, while careful preparation ensures you can move quickly when the moment is right.

The key is to start managing your business as if you want to sell it tomorrow, even if this is not even on your radar. Learn how to make your business appealing so if your circumstances change, you are not caught in a mad scramble and find your business really isn’t that saleable as it is. 

Here are 5 pro tips to start you on this journey:

1.Organize Your Documentation

“Buyers will expect to see a clear and accurate picture of your business.”

One of the first steps in preparing your Amazon business for sale is to get all your documentation in order. Buyers will expect to see a clear and accurate picture of your business, so it’s crucial to organize all of the following: 

Financials: Ensure that your profit and loss (P&L) statements, balance sheets, and tax returns are up to date and accurate. Clearly outline your total revenue, trends, gross profits, expenses, and seller’s discretionary earnings (SDE). 

Intellectual property: Gather documentation for trademarks, patents, and any other intellectual property protection.

Operational documents: Ensure all operational documents, such as standard operating procedures (SOPs) and supplier contracts, are complete and well-organized. 

Having all this documentation ready instills confidence in buyers and speeds up the due diligence process, allowing the sale to proceed quickly once the right buyer is found.

2.Determine the Value of Your Business

“Accurately valuing your Amazon business is essential for setting a fair price and attracting serious buyers.”

Accurately valuing your Amazon business is essential for setting a fair price and attracting serious buyers. Many factors contribute to the value of your business. They include:

Trailing 12-month SDE: A critical metric buyers use to assess profitability.

Niche and market position: The market niche and your business’s position within it can significantly impact value. 

Growth trends: Buyers will be interested in historical and future growth potential. 

SKU count and revenue distribution: A balanced SKU revenue distribution can be more attractive to buyers. 

Intellectual property: Trademarks, patents, and other protections add value. 

Operational complexity: Simpler operations tend to increase attractiveness. 

Competition: The competitive landscape in your niche is a crucial consideration.

Reviews: The quality and volume of customer reviews on Amazon can influence the perceived value.

A thorough and accurate valuation will help you price your business appropriately and identify areas where improvements could before you sell. 

3.Improve Transferability

“Businesses with fewer barriers to transferability can often be sold more quickly.” 

The ease with which your business can be transferred to a new owner is a critical factor in the speed of the sale. Businesses with fewer barriers to transferability can often be sold more quickly. 

Barriers to transferability might include:

Legal or licensing requirements: Ensure all necessary licenses and legal documents are transferable.

Specialized knowledge: Document processes thoroughly to minimize the need for specialized knowledge that only you or your team possess.

Inadequate SOPs: Well-documented standard operating procedures make it easier for the new owner to take over without significant disruption.

The good news is that if your business model is widely understood (like Amazon FBA, for example) it will be easier to find a qualified buyer quickly.

4.Facilitate a Smooth Due Diligence Process

“A smooth due diligence process helps maintain buyer interest and expedite the sale.”

A smooth due diligence process helps maintain buyer interest and expedite the sale. Here’s how to ensure it goes as quickly as possible:

Get organized: Have all necessary documents, such as Amazon statements, bank statements, and vendor invoices, ready and easily accessible. 

Be clear: Present your business operations and financials transparently to avoid confusion and delays. 

Be proactive: Respond promptly to buyer inquiries. Delayed responses can cause buyers to lose interest or confidence in the deal. 

By staying organized and responsive, you can help buyers feel confident and maintain momentum throughout the sale process.

5.Nail the Timing

“Timing is everything when selling your Amazon business.”

Timing is everything when selling your Amazon business. The key is to do all the necessary legwork in advance (organizing documentation, optimizing operations, accurately valuing your business, and reducing risks) so that you’re fully prepared when the right opportunity arises.

Like a well-trained runner at the starting line, you want to be ready to sprint when the timing is right. Don’t rush the preparation; diligently put in the miles over time.

When everything aligns—your business is ready, the market is favorable, and buyers are interested—having all your ducks in a row allows you to secure the best possible deal quickly.

Quiet Light has produced a great document that does a much deeper dive into all these areas – The Definitive Amazon FBA Exit Guide. No pitch, just solid content for you to consider if your ultimate goal is a sale.

We highly recommend you download this and add Quiet Light to the list of brokers you speak to if you’re on this journey.

As always, ask us anything. If we don’t know the answer, we’ll know someone who does!