Amazon Business Brokers: Everything You Need to Know in 2022
The first thing that springs to mind when looking to sell FBA businesses is “how to put my Amazon FBA store up for sale and where?”
There are plenty of options to choose from; you can sell it directly, outsource the task to an expert, or list it on different marketplaces. However, the best and most overlooked option to maximize profit could be finding FBA business brokers and letting them handle the A to Z of Amazon FBA business selling.
In this post, you will learn the why and how to connect with an expert and reliable Amazon business brokers and everything in between.
Are Amazon Business Brokers Legitimate?
Yes, they are. Amazon business brokers are, in essence, a bridge that connects sellers with the right buyers that fit their requirements and vice versa. They facilitate the sale and purchase of the store through legal means and strive to protect the interest of both parties.
Any reputable brokerage maintains a team of qualified personnel who operate within the boundaries of Amazon Seller policies. Amazon FBA sellers can view each stage of the selling process with complete transparency while the broker communicates what can and cannot be done. All reasonable offers are run through you (i.e., the seller), and the final call will be yours to make.
Know the Worth of Your FBA Business
Decided to sell your Amazon FBA store? You’ll need to evaluate your business and determine the price you want to sell it for.
It doesn’t have to be an exact number but keep a range in mind that you think accurately reflects the value of your Amazon business. A seasoned brokerage firm can tell you how much you can expect to get from your FBA store.
Here’s a handy online business valuation tool to get a rough estimate.
How Do Amazon Business Brokers Work?
As mentioned earlier, business brokers are individuals or agencies that bridge sellers to interested buyers who assist in the purchase and sale of companies. Their services can be broken down into several steps:
They help you with the valuation of your business
Before you put your FBA store up for sale, a professional broker will accurately evaluate your business. To arrive at a figure, the first order of business is to analyze your financial records. If you’ve fallen behind on your bookkeeping or lack any necessary documents, your broker can help you out.
They’ll then calculate your company’s tangible and intangible assets and annual profitability. With an eCommerce business, all of your assets are usually intangible, including your Amazon account, creative assets, brand designs, trademarks (if you have any), plus any other platform accounts you may have, for example, a Shopify store, Walmart, eBay, etc.
Note: The inventory you have at the time of sale neither adds nor subtracts from the total value of the business since it is purchased at a separate cost by the new owner.
Next, your broker will create a business prospectus containing all the details buyers or investors need to make an informed decision.
They market your store (and make it attractive to potential buyers)
Most brokerage firms have a marketing department dedicated to promoting FBA businesses and an internal database of buyers to which Amazon sellers wouldn’t usually have access.
They contact potential clients, submit proposals, and start negotiating offers. Most Amazon sellers lack the time and aptitude to sell their Amazon stores profitably, making an FBA business broker all the more valuable.
They handle all the complicated stuff on your behalf!
The most significant part of a broker’s job is negotiating the terms of sale on your behalf. These include the price if the deal is seller-financed, a consulting agreement clause, asset transfer, etc. After the terms are set, a legal team will draft the contract and finalize the sale.
Interested buyers do their due diligence before investing in Amazon FBA brands. If you’re taking the DIY route when selling your FBA business, you may lack the marketing, negotiation, and closing skills needed to sell your store for what it’s worth. However, for the average brokerage, selling Amazon FBA e-Commerce businesses and handling all the paperwork is their bread and butter.
Once all the legal paperwork has been signed, the broker will handle the payment, transfer of business assets, and tie up any loose ends.
In short, brokers will do everything for you to the point of closing the deal and getting you the compensation you deserve. For sellers who are entirely new to the business selling scene and have an account that has a substantial valuation, partnering up with a broker is a great idea.
7 Reasons to Work with Amazon Business Brokers
Now that we’ve discussed how brokerages operate and how much they charge, the question is, why should Amazon FBA sellers work with them?
The answer is simple, the benefits you get from working with a broker outweigh the only negative (the service fee). Here are a few reasons why you should consider connecting with a brokerage for your business:
They Help Determine the True Worth of Your Business
One of the most critical aspects of selling Amazon FBA businesses is identifying your store’s value. Setting up a profitable FBA business isn’t easy; reaching the full potential of any product niche requires hard work, investing finances, the ability to overcome loss and setbacks, and constantly learning the ever-changing and competitive Amazon landscape.
Evaluating FBA businesses, however, is an entirely different ballgame. Multiple factors come into play, and various variables need to be considered – FBA business brokers have years of experience and help clients discover the true worth of their business.
They Have Marketing Skills
Amazon brokers’ specialty lies in dealing with Amazon FBA businesses, which means they’re well versed in the platform and its functions. The best brokerages know the legalities and seller policies and keep track of changing trends.
Brokers assist you in distinguishing your store’s actual cash flow and identifying your add backs or extra expenses that potential buyers may not account for.
Their experience and guidance will help you avoid costly mistakes.
They Are Experienced
A broker’s business involves getting the best for their client’s Amazon business. This means that they will do all they can to get your store sold for the highest possible price.
They employ experienced and knowledgeable people who ensure you get paid what you deserve and the buyers get their money’s worth.
They Know How to Advertise Your Business
You could own an incredibly lucrative Amazon FBA business, but without adequate advertising skills, no one would know you exist. Advertising your FBA business on Amazon differs from promoting it off the platform.
Brokers are skilled in sales and marketing, know where to find the right buyers, and how to present your brand in the best light.
They Can Fetch Great Offers
Not only do brokers make your brand appealing, but they also help you find great offers for your business. Brokers have a broad outreach and usually have a list of prospective buyers. They can get in touch with the right people quickly—something that may take months if you decide to do it alone.
Even if you can find buyers by selling on your own, they may not be suitable for the business, or negotiations might break down. In such scenarios, starting from scratch would be tiresome and not worth your time.
Brokers ensure big firms or aggregators don’t exploit their client’s inexperience.
They Simplify the Selling Process
When you put up your store for sale directly, you must find buyers while simultaneously running or supervising your own business, which prolongs the process and could prove too much to handle.
The most significant upside with Amazon brokers is that they take care of everything on your behalf, saving precious time that otherwise could be used to grow the business further and increase its value.
They Have Access to Large Network
FBA brokers have access to an extensive network of reliable and trustworthy buyers who don’t like dilly-dallying and believe in getting things done.
Indeed, as a business owner, you would prefer dealing with someone serious about investing rather than people who like to do window shopping and never put in an offer.
Moreover, knowing that the other party has actual funds to close the deal would save you from potential scams and waste of time.
How to Pick an Amazon Business Broker?
Since you will place the fate of your business in your broker’s hands, knowing what to look for is essential when selecting the right one. A good, trustworthy business broker to sell your FBA gig will:
- Have the proper credentials and a stellar track record.
- Have a healthy listing-to-sales ratio that shows them successfully selling most of their listings.
- Boast authentic and positive reviews from satisfied clients.
- Listen to your needs and prioritize your interests.
- Share how they plan to market your business and outline their sales strategy.
- Guide you through each process and maintain complete transparency.
- Adhere to a confidentiality policy and respect your privacy.
In this seller guide, we talked about Amazon FBA business brokers–how much they charge, how they work, why you should go with brokers when selling your business, and more.
As a business owner, you’ve already invested considerable time and effort towards building your Amazon brand. Don’t let all that hard work go to waste—work alongside a suitable Amazon FBA broker!