Do you own an Amazon FBA private label brand with strong sales?🤔
If yes, exiting your brand might be an excellent opportunity for you to cash out and maybe even get an extra stream of passive income for the future. 🤑🤩 Our experts have listed down 5 steps on how to get started with selling your Amazon FBA Brand. 👉
1.Know how much your brand is worth
As an Amazon FBA seller, it is important to know your brand's value so that you can make the right decisions concerning your business. In simple terms, the value of an Amazon FBA brand measures its profitability.🤔📈A buyer will use a multiple of your annual net profit (also called EBITDA)
Calculating your Amazon FBA brand’s worth depends on several variables including net profit and an average multiple that is applied to the net profit. This multiple is commonly based on the buyer’s risk tolerance and the perceived value of your Amazon FBA business.
The multiple depends on different factors, but generally speaking, it is usually between 24x and 48x your average net profit from the last twelve months. Meaning two to four times your annual net profit. So if you make an annual net profit of, for example, $400 000, then likely your valuation would be something between $800 000 and $1,600,000.
2.Prepare the financials
Prepare your financials, you’ve got to know your numbers. The main thing that potential buyers look at when buying an Amazon FBA business is the financials. This gives them a clear picture of your cash flow and profitability. 💪When considering making an exit, be sure to prepare detailed financials to provide potential buyers with additional information.
3.Find a buyer
There are four main options available if you’re looking to sell your Amazon FBA brand. They include—marketplace, auction, broker, and direct. Each one of these has its advantages and disadvantages. When using a third-party seller, there will of course, be a slice taken away for them to handle the selling process.😬
With us at eBrands, it’s easy to sell your business directly to us without any middle parts and exit your brand successfully. Firstly we get to the important bit straight away and we’ll get you an in-principle decision within 2 days.😊🤝 Once we make a deal, our integration model makes the process straightforward.
As FBA entrepreneurs ourselves we also know how much love you have put into your brand. So finding a buyer that commits to develop your brand forward does play a difference for most of us.
4.Negotiate the deal
Every business owner's story is different and there are different things sellers are looking for when exiting one of their private label brands.
Some sellers want to cash out and have nothing to do with the business in the future, some want to get the exit money and be a part of growing the brand but they don’t have the time or money to do it by themselves and some sellers want to sell the brand but also benefit financially from the growth of the brand.
If your brand has got a lot of potential for growth, in the right hands it can scale up to a whole different level.💥🤑 We at eBrands will grow your brand and give you an opportunity to benefit from it financially even after your exit.
So when negotiating, be clear on what type of deal you are looking for. We want to make brands fly higher and want you to be a part of it if that’s something that you are looking for.😊
"As FBA entrepreneurs ourselves we also know how much love you have put into your brand. So finding a buyer that commits to develop your brand forward does play a difference for most of us."
5.Enjoy your exit
When the buying process is done, you can start enjoying your exit. But what to do with all that money?🤔 We suggest you check this site, maybe you will find some inspiration on how to spend it! 😉 https://www.ft.com/htsi
Thinking about selling your Amazon FBA brand?💰 We are here to help and would love to have a chat with you!👋 😊 Contact Robin Bade at robin@e-bands.co
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