Originally published on December 21, 2021, updated March 8, 2023
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If you are looking to sell your Amazon business in the next year, or you want to aggressively grow your business in 2022, watch this webinar today! We partnered with experts from Cahoot and Empire Flippers to answer questions about how to make the most of your Amazon business value this year.
Watch the webinar recording to learn:
Watch the webinar today!
Whether you’re planning to sell your Amazon business or aggressively grow your brand this year, one thing you’ll need is a winning strategy. eComEngine wants to help you find it, so we partnered with industry experts Manish Chowdhary, Founder of Cahoot, and Gregory Elfrink, Director of Marketing at Empire Flippers, to bring you this must-watch webinar filled with useful tips and actionable guidance to help you maximize your Amazon business value.
A new year has begun and you might be wondering whether it’s better to sell an FBA business before or after Q4. Our experts explained that there isn’t one right answer to that question. If you’re looking to sell with the least amount of competition and the most buyers, Elfrink advises that Q4 is a great time to sell. End-of-year buyers may be trying to add to their portfolio or take advantage of tax breaks, making them highly motivated.
On the flip side, selling an Amazon business in Q1 is very common. Having a successful Q4 increases valuation because it’s based on profit. However, other important factors should be considered carefully.
According to Elfrink, “The real answer I would give is you shouldn't consider timing the market at all…I always tell people, you should time the market by looking at your personal and business goals.” He explains that many business owners are happy when they sell but are often left wondering “Well, what do I do now?” Take some time to plan your next steps before putting your business on the market.
What are the pros and cons of selling privately versus using a broker? While it’s absolutely possible to sell your Amazon business privately, brokers make the process much easier.
Chowdhary echoed this sentiment, explaining, “This is a very emotionally charged journey for the seller because they put their heart and soul into their business. Having a third party like Greg at Empire Flippers creates that distance.” This allows business owners to step away and continue focusing on successfully running their business until it’s sold.
Do logistics and fulfillment play a key role in your valuation and the sale of your FBA business? Absolutely. As Chowdhary succinctly explained, “The great businesses are bought, not sold.” To maximize your Amazon business value, you need to run the best version of your business at all times in order to create intense competition. Making your business attractive to buyers in this highly competitive space requires effort, but is worth it in the end.
“The way I like to think about it is that the acquirer should want to model the other businesses in their portfolio to emulate yours as opposed to the other way around, because what is a buyer looking for? A buyer is looking for an undervalued asset,” says Chowdhary. You don’t want your business to look like a fixer-upper, you want it to be the showhome.
Do product reviews play into the valuation of an Amazon business? Absolutely! Product reviews say a lot about the products you sell and how you treat your customers. Your brand’s reputation could make or break the sale of your Amazon business, as buyers will be less interested in a brand that customers don’t like or trust.
“Reviews are extremely important as a buyer because this is direct feedback from your consumer,” said Elfrink. “Reviews are critical to your success both as an Amazon seller, even if you're not going to sell the business, as well as actually selling the business.”
As Colleen Quattlebaum, eComEngine’s Director of Marketing, advised, “If you're preparing your business to sell, make sure you're asking for reviews on every order, that you're monitoring reviews, and that you're following policy and doing it the right way. No black hat tactics because it's not going to get you anywhere.”
We’ve recapped some of the highlights, but there’s so much more in the webinar. Not only will you get more in-depth guidance on the topics we’ve just covered, but you’ll also hear Elfrink and Chowdhary answer questions from Amazon business owners on a wide range of topics including:
This webinar is a must-see for anyone looking to grow or sell their Amazon business this year. Be ready to take notes!
Originally published on December 21, 2021, updated March 8, 2023
This post is accurate as of the date of publication. Some features and information may have changed due to product updates or Amazon policy changes.
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