In the past year, we have seen growth of buyers outpace the growth of sellers. This is especially true for businesses making more than $250K per year.
The three main buyers of Amazon businesses we see are:
Boutique private equity companies.
Small investment firms have popped up with increasing frequency over the past few years. They raise anywhere from $2 million to $10 million from investors. Then they’ll acquire a portfolio of businesses, streamline the operations and use their expertise to scale the businesses.
For more information of PE firms buying Amazon businesses, this is a worthwhile read.
Amazon’s success is no secret and professionals from industry have taken notice. Typically these are people with a finance or engineering background who see the value in owning a small business and would rather work 3 hours per week and spend time with their family than pursue their current career.
In addition, many buyers based in the US are eligible to use assets from qualified retirement accounts to purchase businesses. At Upward Exits, we always go the extra step to help buyers explore financing options. This also helps the seller get cash offers and higher valuations. You can read more about our buyer services here. We are also happy to provide a complimentary valuation of your Amazon FBA business.
Current Amazon sellers
We see a number of folks who are already selling on Amazon purchase additional businesses/ product listings. They may only increase their workload 1-2 hrs. / week and can get a great return on their investment.
In addition to Amazon, we also see this trend in lead generation and affiliate marketing businesses.
How Do I Sell my Amazon FBA Business?
We created a blog all about the process to selling your online business. The only additional step that is applicable for Amazon businesses that we did not mention in that guide is that we need the seller to call Amazon during US business hours and tell them that they will be selling their business. Amazon has a best practices guide that they update periodically that helps with the asset migration process.
For a more thorough overview of how to sell your Amazon business, have a look at this article.