– What is your endgame? When I first selling on Amazon back in 2013, I had no endgame. I wasn’t focused on creating an asset that could be resold, I was just focused on reselling products. That was a mistake, if
you’re an Amazon FBA seller, you should know that
you’re building an asset that can be resold down the road, if you take the right steps along the way. Amazon FBA businesses are in high demand and many sellers are
selling them for up to 36 times their monthly profit. So that’s three years of profit. Many sellers are making six, seven, even eight figure deals selling
their Amazon storefronts. This video, I’m going to show you what Amazon businesses are going for and how to make sure that you’re set up to resell your business at
the highest possible price. Let’s go. (upbeat techno music) If you don’t have time to watch this video, I get it, check
out Empireflippers.com or Flippa.com, those are two websites that sell Amazon FBA businesses. Empire Flippers is a better option, it’s bigger and they have
a more strict criteria, so you can’t sell like
brand new small stores. Flippa, however, you can sell very small stores, even stores
that have like no sales. You can sell just selling the gatings, and the account page. So check those out, but
for the rest of you, let’s get into reselling
your Amazon business. Okay, we’re inside Empire Flippers, this is the go-to site for selling bigger Amazon storefronts, and buying bigger Amazon storefronts. Like I said, they’re very choosy about what they let on the site, so if you have a very new account, it’s
probably not going to pass. If you have a retail
arbitrage or online arbitrage account, it’s probably
not going to be allowed. Which brings me to the first thing. Arbitrage accounts are
very difficult to sell. I love the model, you
know I love the model, but you should always
be striving to expand into things that are easier
to pass on to someone else. You need to think about
handing over the keys to another business. What would you pay for
a business, where it involves the person going
out daily and doing work? The less work that’s involved, the more valuable an Amazon business is. So let’s go in here and we can actually take a look and see what it is that they actually are listing on these and we can see what people value and what they what makes the sites
worth what they’re worth. So let’s go in here and
let’s go to Amazon FBA, here’s a bunch of different stores. The way that it’s broken down, the have net profit, so that is
a monthly net profit, they should put monthly on
there, but that’s monthly. The price is $203,000,
what they do is they get a multiplier based on various things. That is a pretty high multiplier, that’s almost a 30x multiplier, which means 30 times the net profit, it’s a little bit less than that. But it’s close to it, 28 maybe, you can get a calculator
if you want to do that. But yeah, so it’s a good multiplier, the one below it is even better, it has only $5,775 per month in sales, but it’s selling for $207,900, so that multiplier is way higher, it’s almost 37, 38, something like that. So, let’s go into one of these, as you see, they list down here the monetization, this
first one is multiple ways, they do dropshipping,
Amazon FBM, eCommerce, you know how I feel about dropshipping, love it, but not on Amazon. Alright, Amazon FBA, this
one is an E-Cig company, so this one’s a little
bit risky, just because you never know what the future holds for those types of industries, but hey, right now it’s making money. Things here that they mention, the age of the account is super important, the older the account, the
more it’s gonna be worth. They’re part of the
brand registry program. They only spend about five
hours per week, that’s big. And that’s just monitoring PPC campaigns. They said they have a Instagram account, so if you have any sort
of following, email list, anything that has customers, that is going to increase the value of the store, right? That’s the thing also
about arbitrage businesses, is they don’t have that, they’re more of a hodgepodge of whatever makes money, whereas a specific branded site storefront is going to be able to
benefit from marketing, benefit from other things like social media marketing,
influencer marketing. Alright, so they show some other stuff, it shows the assets included,
domain and all site content, the seller spends five
hours a week, like we said. Net profit, average page views per month, they get that from Amazon. Gross revenue so you can
see what their margins are. Margins aren’t bad,
they’re in the 20, 25%-ish. Proof of income, you have to show these proof of incomes, this
is straight from Amazon. It’s a lot easier to
validate an Amazon business, because Amazon gives you
all that direct information. Proof of traffic. Traffic, I mean most Amazon sellers aren’t really as concerned about traffic as they are about sales, unless, you know you want to see how much of the traffic is being purchase versus
how much of it is organic and just the product ranking well. And unfortunately these reports won’t actually show that, so that’s one of the things that people would ask is, How much are you spending
on pay per click? And is that being counted out of the margins on the products? So, if you are in private label, you know exactly what
I’m talking about here. So their support, the seller is willing to provide as much support as is needed. That’s important, you need to be able to get them up to speed. Reason for sale, it’s almost always looking to focus on other business. Another factor that’s going to dictate how quickly a storefront will sell, and what price is the
flexibility of the terms. If you’re looking for all cash, it’s gonna be more difficult than if you’re flexible and will take payments. These people didn’t make a note that they’re willing to take payments, but they did say that they’d take Bitcoin, which is unique. (fart noise) So that’s one way of increasing the sales velocity of your storefront, you’re more likely to make a sale if you break it down into payments. It’s very difficult to
sell in all cash anything in that six, seven, eight figure range. It’s just, probably gonna double, triple, quadriple the amount of time that it takes to make the sale. One final but very important aspect is, where are they getting the products from? And do they have a
trademark on those products? That could go along with risk, but the source is super important. Is this a product that other people can just go on Alibaba and
then brand as their own? Or do they have some sort of unique competitive advantage and a connection with a supplier who is making this very easy for them? So this is the type of
stuff that people will ask when they get closer
to the buying stages. Who are you making these deals with? Where are you getting your products from? What is the freight cost? How quickly can I get new inventory? Stuff like that, so it’s very important is the source and any
trademarks that they have on that source and that brand. So that is it guys, that is everything that I know about reselling
an Amazon business. If you guys have any questions, leave them in the comments. I am going to be giving away a $50 Amazon gift card to the best comment. So leave a comment, give me
a thumbs up and subscribe. And that is all, take it easy everybody. (ding)