- Posted on April 6, 2022
- by Benedict Dohmen
Top 5 Reasons Why Amazon FBA Owners Sell Their Businesses
Over the past 20 years, Amazon has pretty much come to dominate the way people buy things online – but what if we told you it doesn’t stop there?
If you’ve built up a robust third-party Amazon business, chances are that you’ve seen comparable companies go to high-bidding investors – making fortunes for their founders in the process.
The trend seems to show no signs of slowing down. Since April 2020, firms have raised a whopping $7 billion for growing and buying out FBA businesses for sale.
If you’re looking for a slice of that pie, look no further – we’re here to discuss 5 crucial reasons behind why offering your Amazon FBA business for sale could be your next big move.
Table of сontents:
Why should I sell my Amazon FBA business?
1. Keeping things fresh by reinvesting
Building an Amazon business is more than just business, it’s a true art. Cast your mind back to those small mistakes you made in the beginning – all the money you wasted on PPC with no results because you didn’t have the right keywords – all the stress when it came to paying suppliers, branding, launches.
You might be thinking “If I’d had X amount of cash to invest in my first launch, I would have been number 1 in just 3 months”, or “If I could invest in a better product, I’d be spared from so many negative reviews”.
With the opportunity to put your FBA business up for sale, there’s no need to get stuck in hindsight. Now you can do all of the above and more – run a business from scratch just the way you’d want to.
The idea behind putting your Amazon FBA business for sale is to secure funds for a new adventure and reinvest your money in a new brand. The only difference is that this time, you’re armed with exponentially more knowledge and funds when compared to your first FBA business launch.
Alternatively, an online Amazon business may never have been your dream in the first place. Maybe that dream was owning a small coffee shop or vegan restaurant, but you never had the time and money to invest.
You can make that dream a reality! By selling your Amazon FBA, you’ll have the funding readily available to start your next venture – and you can finally follow your passion.
2. Sometimes, it’s just about the money
Granted, people get into FBA businesses for a variety of reasons. Some simply want secondary income streams, others are passionate about certain products, but if there’s one thing in common between every Amazon FBA business founder – it’s that they all love profits.
Perhaps you’re looking to finance your child’s university tuition. Maybe a close friend needs some financial help, or you simply want to retire early and buy the house of your dreams.
The reasons are endless, but making a large chunk of cash can help you achieve many important life goals – and even save you from emergencies regarding your health or any other crisis.
Whatever the reason may be, the prices of a solid Amazon FBA are between $500,000 and over $1 million – more than enough to help you out in most circumstances.
3. You aren't able to keep up with business demands
We’re preaching to the choir here, but running an Amazon business can be quite demanding (and it doesn’t get any easier with time).
With several different bits and pieces of the Amazon puzzle to worry about, running a business on its many platforms has become much more complicated compared to around a decade ago.
Amazon’s constant changes – from updating its terms and conditions, changing its policies, adding new services, and, on top of that, adding even more paperwork, rules, and stress to sellers – can get overwhelming over time. Maybe you don’t experience the joy and excitement you once had when you launch a new product or receive a 5-star review.
Instead, you’re worn down by constant problem solving, putting out little fires everywhere. Sometimes it feels more like solving a complex puzzle than running an Amazon business. The constant stress and problems may be a good indicator it’s time to sell your Amazon FBA business.
Another reason to feel overwhelmed could be that the business has grown beyond your capacity to run it – and is starting to become a drain on your health and general wellbeing. Even if you enjoy the process, you might hit roadblocks such as international paperwork and registration.
If these sound too difficult to work on alone, perhaps it’s a good idea to find a private equity firm willing to invest and take over while keeping you onboard as well.
Before losing yourself in the entire process, consider taking a step back and selling your Amazon FBA business – or selling a portion of it and managing the rest. The sale will allow you to finance a well-deserved break or a dream vacation with your family.
4. Things just aren’t working out
Offering your FBA business for sale can be a tough choice – you’ve put so much blood, sweat, and tears into making it work, after all. Still, it takes a lot for a business to stay successful – 21.5% of all small businesses lose their steam by the end of their first year.
If you feel drained and can’t take it anymore, putting your Amazon FBA business for sale is one of the best decisions you can make. Instead of filing for bankruptcy, sell your business to someone who has the team and ideas to improve your business and make it super successful.
5. Your business has high demand
Quit while you’re ahead – isn’t that what they say? This rings particularly true for those looking to sell an FBA business. Instead of waiting for slump periods to sell at your weakest, it may be best to sell your business at its peak potential.
It may not seem like it, but there’s a couple of reasons why it’s the best time: if the market is booming, the buyer is in control of the price. Don’t wait for a crash to sell, do it while the market is buoyant and the future looks bright. This way you can cash out 2-3 times more than the actual value of the business.
Key takeaway
Selling your Amazon business can be one of the most exciting and unique points of your career – giving you the momentum to swing your entrepreneurial spirit to even greater heights.
If you’re curious to see just how much your business could net you, click the What’s My Business Worth button, and we’ll send you a free valuation within 24 hours!
Now it is your turn – do you have a question for the Benitago team? Or maybe you want to start a conversation with like-minded individuals? Feel free to share your thoughts in the comment section below!
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