Want to Sell An Amazon Business? Keep the Following in Mind

The Fulfillment By Amazon (FBA) has gained a lot of popularity in the online business space. It’s among the top ways to make money online in 2020.

For someone without knowledge and skills on how to start an online business, buying an already established FBA business is a worthy investment.

While each business is unique, there are some factors that can make it easier or harder to sell your business.

In this post, we’ll look at ways to determine when to sell your FBA business, how to know its value, and how you can boost its value before selling it.

A lot of questions will arise once you decide to sell your business. You might be wondering who would buy your business, where to find buyers, and how the sale process works. You’ll get answers to these questions in this post. We’ll also cover how to handle common hurdles in the selling process.

You’ll also see how to prepare your business for sale. Without a buyer, you’ll never sell your business, so it’s crucial for you to understand the buyers’ viewpoint.

Can You Sell Your FBA Business?

Not sure whether you can sell your business? Consider these three things:

  • Type of Business
  • Age of Business
  • Seller Discretionary Earnings (SDE)

These factors play a critical role when determining a business saleability. Let’s look at each of them in detail.

1. Types of FBA Businesses

FBA business is categorized into three major classes:


Resellers usually compete for the buy box. They buy wholesale and sell retail on amazon to make a margin.

Private label

Here you have your own brand but compete with other resellers on Amazon platform. Since it has a consistent supply, it is more attractive to buyers.

Proprietary products

Here, only your company sells a specific item, making it the most attractive type of FBA business. Since buyers pay a premium, your business is more defensible in the long term.

2. Age

A buyer will want to check at the history of your business before deciding to buy it. A business with a long history is likely to attract a higher proposition. You can also sell a business under one-year-old, but most buyers will want a discount to cover the risks that may come.

3. Seller Discretionary Earnings (SDE)

It is important to know your numbers before listing your business for sale. Most buyers will want to see your annual net profit before giving an offer.

What is the Value of My FBA Business?

Once you’ve determined that your business is saleable, the next step should be to find out about the value of your business. You will only know the true value of your business when you get a buyer. Having said that, we can only help you to come up with an estimate of what your business could sell for.

There are a lot of factors to consider when determining the value of your FBA business. As a rule of thumb, multiply your annual net profit by two. Remember that a buyer will purchase your inventory at cost on top of the selling price.

How You Can Make Your Business More Worth?

The amount a buyer will pay for your online business will come down to return on investment and relative risk. The higher the risk, the lower the price and vice versa. Here are some factors that buyers look when buying a business:


The older your business the more valuable it is to the buyer. It is hard to project future earnings for a one-year business compared to a four-year business, which is what buyers are looking for.


Having your own manufactured and branded products gives you an advantage over your competitors.


Buyers are likely to avoid businesses in a niche with high competition. The market and your position in the market matters.


Having quality and dependable supplies will make your business more attractive to potential buyers.

How to Find a Buyer?

At this point, you might be wondering how to find an ideal buyer for your business. Luckily you have a number of options. For instance, you can hire an amazon business broker to help in the selling process or you need computer network setup for your business where you appoint few people for your business and they will find buyers for you online.

A broker will handle everything for you, so you won’t have to deal with fraudsters or people who just want to see how you’re running your business. A broker will help find ideal buyers and also help with negotiations.

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