Are You Ready to Sell Your Amazon Business? Why Operators are Acquiring Amazon Brands
Earlier this month, Payoneer hosted an exciting and insightful webinar on the topic of selling an Amazon business. Recently, more and more aggregators are entering the eCommerce market with one goal: help third-party Amazon sellers reach a whole new level of growth by selling their Amazon FBA business that is.
In our latest webinar, our very own Senior Strategic Partnerships Manager, US, TJ Hyland, sat down with four leading Amazon brand acquires; Head of Sales at Acquco, Jake Wolpert, Chief M&A Officer at Elevate Brands, Jeremy Bell, Founder & Co-CEO at Forum Brands, Brenton Howland and VP Acquisitions at Thrasio, Ken Kubec.
Amazon brand operators are out there looking to help sellers like you sell your brand and leave it with them to scale the business’s operations while you focus on other efforts.
So, before you decide to sell your Amazon business, let’s first understand the recent rise in brand operators as well as what to consider before taking the big leap.
Watch the full webinar below!
The Rise of Amazon Brand Operators
Over the past two and a half years, more and more Amazon brand acquisitions have been made, promising sellers on the platform growth and a speedy increase in sales. In fact, an observation made by these brand operators is that two years ago, most Amazon sellers were actually completely unaware that they could sell their business. With the rise in valuations in the market, there’s been a massive wave of sellers who are now looking to sell their brand, especially those who are struggling to run it, bringing in more buyers to the market.
Buyers on the other hand, are quickly noticing how many brands are being born on Amazon, the world’s leading eCommerce marketplace and just how great the products are. In addition, over the past 12 months, many of these brand operators have seen a sharp increase in raising capital and external funding, in fact, billions of dollars have been deployed to help aggregators acquire some of Amazon’s best brands, creating a more competitive market.
So what does this mean for you as a seller? With more aggregators looking to acquire your assets, this could be your golden opportunity to make that exit you’ve always dreamt of.
The Amazon Brands That Operators Are Looking to Acquire
While many of these aggregators are currently seeking Amazon brands that are based in the U.S. and UK, more and more seem to be open-minded about reaching out to global Amazon brands as well. With that said, what are these operators looking for in order to make a successful acquisition? The list can go on but some of the main things they’re interested in seeing is an established optimization strategy, consistent sales, engaging Amazon ads, good product listing and well of course, the products themselves.
How to Know if You’re Ready to Sell Your Amazon Brand
Now that you know how Amazon brand operators work and what exactly they’re looking for, how do you know if selling your Amazon business to an acquirer is the right route for you? To help you with your decision, here’s what to consider.
- Lack of expertise – As selling on Amazon will continue to become more diverse and complex, as a seller, you need to make sure you have the right knowledge of the platform and are up-to-date on all of the changes occurring. Perhaps prior to Amazon, you haven’t had much experience as an online retailer? Or, perhaps you’re finding it difficult to deal with Amazon nuances, fraud or logistics? If so, then it may certainly be time for you to hand over your business to an acquirer.
- Shortage of resources – As any entrepreneur, scaling your business after reaching a certain amount in sales requires additional investment and efforts. If you find yourself with a lack of funds, it may be the right time to transition your Amazon brand to an acquirer who has the resources to turn the brand into a billion-dollar business.
- Decline in passion – When you first started your Amazon business, it was most likely very exciting and thrilling, especially if you were a first-time entrepreneur. But maybe after some time, you’re starting to feel that your heart is no longer into it and that you’re ready for a new adventure. It’s definitely a popular feeling among many Amazon sellers who reach a certain point in which they feel it’s time to start something new and it’s the perfect opportunity for you to cash out.
Bottom Line
Deciding whether or not to sell your Amazon business and handing over the keys to an acquirer can be intimidating and emotional at the same time, but only you know what the right move is. To help you with your big decision, continue watching our webinar to better understand what Amazon brand operators are looking for and how you can reach out to them.
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