Can you sell an Amazon FBA store?

Amazon FBA (Fulfillment by Amazon) businesses have become increasingly popular in the past decade, offering entrepreneurs a way to sell products with minimal overhead. As these businesses grow, many owners wonder whether they can sell their Amazon FBA store just like any other online business. The short answer is: yes, you can sell an Amazon FBA store, and it’s actually a common practice within the e-commerce industry.

There is a thriving market for buying and selling Amazon FBA businesses. Investors and business buyers are constantly on the lookout for cash-flowing online assets, and an FBA store can be a very attractive investment. However, selling such a business is more complex than simply handing over login credentials. There are multiple steps and considerations to keep in mind.

Understanding the Value of an Amazon FBA Store

Before selling an Amazon FBA store, the owner needs to understand its worth. Valuation can vary depending on many factors, including:

• Revenue and Profit Margins: Businesses with consistent high profits attract more buyers.
• Product Niche: Some niches are more appealing than others due to low competition or steady demand.
• Sales Channels: Stores that depend solely on Amazon may be less appealing than those investing in multichannel strategies.
• SOPs (Standard Operating Procedures): Having documented processes in place makes the business more transferable and manageable for buyers.

Valuations typically use a profit multiplier model. For instance, a store earning $100,000 in annual net profit could sell for 2-4x that amount depending on other qualitative factors.

Marketplaces such as Empire Flippers, FE International, and Quiet Light specialize in the sale of online businesses, including Amazon FBA stores. These platforms provide vetted buyer networks and help simplify the process of transferring ownership.

Steps to Selling an Amazon FBA Business

Here’s a simplified rundown of the typical process:

1. Prepare Financials: Ensure your accounting, profit and loss statements, and inventory reports are up to date.
2. Valuate the Business: Work with a broker or use online valuation tools to determine a realistic market price.
3. Create an Asset Inventory: Develop a list of all assets included in the sale—Amazon Seller Account, trademarks, domains, supplier contacts, etc.
4. Find a Buyer: Use a brokerage or online marketplace to reach a pool of interested and qualified buyers.
5. Perform Due Diligence: During this stage, the buyer evaluates your records and operations before proceeding.
6. Transfer Ownership: Transfer the seller account (or create a new one and migrate the business, based on Amazon’s TOS), inventory management tools, supplier relationships, and digital assets.

Some buyers prefer buying the entire Amazon account, while others may request a transfer of assets to a new account. In either case, the seller should work closely with Amazon and any legal advisors to ensure compliance with official policies.

Legal Considerations

Amazon’s terms of service do not explicitly allow account transfers, but such transfers do happen frequently in the form of business asset transfers. One common method is to transfer ownership of the legal entity (LLC or corporation) that holds the account instead of the account itself. This minimizes the risk of disrupting operations or violating Amazon’s rules. However, it is essential to consult with an attorney who specializes in e-commerce law to handle this properly.

Why Buyers Are Interested

Amazon FBA businesses are appealing because of their scalability, relatively low maintenance needs, and established infrastructure. For investors or entrepreneurs who want a “plug-and-play” business model, acquiring an FBA store is often more appealing than starting one from scratch.

FAQ

• Q: Is it legal to sell an Amazon FBA business?
  A: Yes, it is legal, though it’s important to structure the sale correctly, preferably by transferring ownership of the business entity.
• Q: Do I need Amazon’s permission to sell my store?
  A: You do not need explicit permission, but the process must comply with Amazon’s requirements. Often, buyers inherit the original entity to avoid red flags.
• Q: Can I sell only the products and listings without the entire account?
  A: Yes, some deals include transferring only product listings, trademarks, and supplier relationships, while the buyer uses their own Amazon account.
• Q: How long does it take to sell an Amazon FBA store?
  A: It depends on the size of the business and buyer interest. On average, smaller stores take 30-60 days, while larger ones may take several months.

Selling an Amazon FBA business can be a lucrative exit strategy for entrepreneurs, provided they prepare thoroughly and follow the proper legal and financial procedures. With the right planning and tools, transitioning ownership can be a smooth and profitable experience for both the seller and the buyer.