What is the Value in an Amazon AccountThere’s nothing like finding exactly what you need you when you need it...right? No-fuss, no hassle, just easy and convenient.Turns out most consumers want that for their online shopping.Besides, the Internet is supposed to be convenient, it shouldn't feel like
Updated Date: Jun 30, 2022
Publish Date: Sep 10, 2019
Top Snippets - What to Value in an Amazon Account
What is the Value in an Amazon AccountThere’s nothing like finding exactly what you need you when you need it...right? No-fuss, no hassle, just easy and convenient.Turns out most consumers want that for their online shopping.Besides, the Internet is supposed to be convenient, it shouldn't feel like walking through virtual aisles of a store - and platforms like Amazon prioritize this consumer need.In our last episode, we talked to Jason and Ron from WebsiteClosers.com about the basics of companies that are fulfilled by Amazon – also known as FBAs.On today’s episode of Deal Closers - A Tech & Internet M&A Discussion, we go a little more in-depth about the values these companies bring when it's time to sell.[02:16] How can some FBAs differ from each other? For example, can you have FBA companies that operate solely on Amazon platform and others that use multiple online platforms to sell?One of the things that a lot of our clients are doing is setting up Shopify stores. Others will go into places like Walmart, and depending on the type of product, they may also do well on a place like Etsy. We’ve got several clients that would be roughly 50% on Amazon and 50% on their site. By creating this mix, your company becomes a much more valuable one because you truly create a brand where there’s awareness in the social space.With just an only Amazon company, while it’s still easily sellable, it doesn’t quite have the branding yet, off of that platform.[04:50] What are some of the things that you guys do, at websiteclosers.com, that sets you apart from other companies that sell FBAs?We position ourselves as one that wants to push the highest possible multiples on a business.Our sole focus is how can we position this in the light most favorable to the market place and how we’re going to get the largest possible deal.We’re able to advise people – each step of the way we tell them when and why to do certain things.We do what our clients do every day – we own and operate a number of eCommerce companies that operate their own website and they also operate on Amazon.[09:43] Is it common for companies to sell while they're transitioning into or out of being an FBA business?Years ago that was the case but now you’re not going to see somebody in the middle of that kind of transition.[11:25] I understand it's relatively difficult to transition an Amazon Account. What has been your experience with that?It's changed a lot over the years. When Ron and I were selling these companies a long time ago, we actually had to sell them as stock transactions because there wasn't an easy way to change an account.That's completely changed in recent years. Now you can log in and change your legal entity and it's nice and easy for you to transition away.We'd like to make sure people are aware that we're not selling Amazon Accounts, we're just transitioning a company that operates on the platform to another that operates on the platform.[13:49] What expectations are set when an FBA company wants to sell?That varies a great deal because there's all different kinds of sellers out there.It's important for us as intermediaries to manage expectations tightly throughout the process because what a seller wants for a business and what a buyer is willing to pay are sometimes two completely different things.[21:47] What are some common misconceptions you've seen on the behalf of FBA sellers?One misconception, just in general, from Mergers & Acquisitions is that guys will go out and look online to see what kind of multiples are being paid for businesses, but every company is different. A lot of times we are having that battle up front with a client, where they've done this research, they see what's out there, and we're telling them the way it really is.Another misconception is that owners believe that they could just sell a company and move on. Resources:websiteclosers.com See acast.com/privacy for privacy and opt-out information.