After many sleepless nights, investing time and money you have an online e-Commerce empire in Amazon. You have developed a business model which can give consistent income. There is credibility in your seller account. Hundreds of loyal customers buying the products as soon as you list them. Also, you have made many business mistakes and learnt lessons. One might be selling the Amazon business for several reasons. Expansion, new ideas, raise capital and other reason. Also, its time to go to the next level, should you sell this business or keep running them? Let’s discuss some of the challenges and reasons to sell your Amazon business.

amazon business

Identifying the Business Potential

Business potential is all about finding the worthiness. One can identify their business potential by doing a SWOT analysis. This is a very popular strategic planning technique in all areas. One can do SWOT to person, group of people, small business or a large corporation. Strength, Weakness, Opportunities and Threats are the four parameters used to make a key decision. 

Strength in e-commerce business is like a product base, customer base and cash flow. Any aspect can be your strength in a business or weakness. This is important to understand while assessing the overall health of the business. Strength and Weakness also known as internal factors in SWOT analysis. Both will vary according to the end objective.

Opportunities in the eCommerce business are immense. Ability to acquire new business, opportunity to sell unique items and much more. On the other hand, macroeconomics change, regulations, inventory cost, customers returns, and other factors are a threat to business. The SWOT analysis will give overall health of the business. Therefore, performing a SWOT analysis will help to address key decisions.

Business Valuation

amazon businessA business valuation will help you understand cash flow, transactions, assets, liability, profit and loss. These parameters will define the selling price of the business. Generally, small business is evaluated in thumb rule. One might face a significant loss if you sell the business in a hurry. Hence, it is recommended to valuing the business, finding a buyer, bank statements, conduct due diligence, other evidence and start the legal process. Also, it is important, to be honest, and let the buyers know the threats you faced.

Final Deal

It is best in hiring a broker if you are not sure how to sell your eCommerce business. They will charge a small percentage and all the due diligence, analytics and evaluation part will be taken care of by them. Once the price is finalised, the money will be escrow. After the complete handover like assets, online account details, transactions and invoices amount will be settled in your bank. Similarly, if you are planning to buy a new business one can contact brokers. Having a broker helps you identify new opportunities as well. It is best to keep someone locally and a good knowledge of marketing and business analytics experts. Generally, brokers keep 10 to 15 per cent commission. Importantly, they help you find a buyer and make a sale. Consulting other eCommerce businesses provides information on a different angle.