Do you want to invest money in Amazon business? Are you planning to buy an existing Amazon FBA business for sale? Are you looking for trusted and verified sites to buy Amazon storefront?
Amazon business and its success is not hidden from anyone. Thousands of new sellers making Amazon FBA business plan and launching stores every month on different marketplaces.
But, there is one more way to start Amazon journey without working from the starting phase. Yes, investors and entrepreneurs are buying an existing Amazon FBA business and giving a boost to their business making profit from the very first day.
But, before you buy or make any decision regarding it, I recommend you to read the full article. It covers all important stuff that you should know.
Table of Contents
- Is Amazon business buy/sell legal?
- Why to buy an existing Amazon Business?
- Factors to look for before buying an Amazon Business
- Best brokerage sites to find Amazon Business for Sale
Is Amazon business buy/sell legal?
Both Amazon business buyers and sellers are worried of, whether it is possible to buy or sell Amazon FBA business. The answer is Yes. Amazon allows sellers to sell their business. You can transfer your ownership to other person/business. It is justified by Quiet Light Brokerage with proof.
Why to buy an existing Amazon Business?
No time but have Money to invest
A new seller needs enough time, efforts, and money to start selling on Amazon. You will need this time for product research, finding suppliers, negotiation, shipment plan and then launching. After that, you will need efforts to optimize product listing, PPC etc.
So, if you have less time and enough money to invest, it is a best idea to buy an existing Amazon business. You will gain access to good selling Amazon product, inventory etc. A good investment in marketing will boost more sales on the existing account.
How to start an Amazon FBA business with little money?
Dominate a niche
Buying an existing Amazon business is a good idea for existing Amazon sellers and brands. They can buy competition businesses and dominate a niche on Amazon. Such strategy can multiply your business profits.
Monetize your audience
It is a golden opportunity for bloggers, youtubers, and influencers. They have a good follower base on social media and email list. You can buy a niche specific Amazon business and get your years of hard work monetized into dollars.
Factors to consider while buying an Existing Amazon business
Check Amazon Business type
Amazon has two business types, Amazon FBA and Amazon FBM. In FBA, the seller sends the inventory to the Amazon warehouse, and Amazon handles the shipping. While in FBM, seller keeps the inventory and handles shipping as well.
Amazon FBA models include:
A) Private label products: Purchased directly from manufacturer under own business branding.
B) Retail Arbitrage: Stocked products from clearance sites and shopping malls at discounted price.
C) Wholesale products: Sourced from supplier in good quantities under manufacturer’s branding or without brand name.
Out of the above models, private label Amazon FBA business is a good and a successful model. I will recommend you to buy such FBA business. Here you will get branding benefits and quite high profit margin than wholesale and retail arbitrage product/sale.
Amazon FBM Models include:
A) Wholesale products: Bulk buy from supplier and stock at your own warehouse or home.
B) Retail arbitrage: Buy from clearance stock stores and shopping malls.
C) Dropshipping: List a dropship seller’s product, when you receive the order, the supplier will fulfill to the customer.
The conclusion is to invest in FBA business. Here, you will need to spend less time than FBM. Amazon will automatically handle the shipping, provides support to the customer etc. You can concentrate on business growth.
Check Amazon account age and sales history
It is necessary to check Amazon seller’s account details before making a decision. Ask the Amazon seller to provide your sales history report. Look for month wise sales, account health, seller reviews, and return rates etc.
Check all product listings and its statistics
Ask the seller to share all listed product ASINs. Check each listing manually, its launching date, product sales history data, products monthly sales data etc. Read users reviews on each product, are they satisfied with the product quality and usage or not.
Also, do Amazon keyword research to search those products search potential. It will help you analyze the demand of the products and their niches.
Profit calculator sheet and PPC reports
You should ask the Amazon seller to share product profit sheet with you. So, you can analyse the product potential to help you earn money. Check supplier’s fees, shipping fees, FBA fee, Monthly storage fees etc and better analyze profit margins.
PPC amount spending is a liability as well in Amazon business. So, ask the seller for PPC reports. Check the Acos, CTR, and conversion rate. So, you can predict how much the seller spending for making a sale via PPC campaigns. Deduct it from expect profit margin. You will get exact profit calculation per unit sold.
Broker sites to find Amazon FBA business for sale
Flippa
The Flippa is one of the oldest and trusted buy/sell websites online. Here, you will find thousands of apps, website, and eCommerce marketplace businesses for sales.
The site features active 50+ dropshipping and Amazon FBA business for sale. The business pricing starts from $3000 to up to $3,50,000. It is an ideal place to buy small and verified Amazon FBA business accounts.
Empire Flippers
The Empire Flippers is a leading business auction site in 2020. You will find startup and mid-sized Amazon FBA businesses making yearly profits in five and six figures. You can filter the businesses by niche, and selling price range.