In our companies we are currently managing three of our own Amazon accounts. I am considering selling one to focus on the main niche of collectibles.
If you want to sell something you have to give it a value.
1 How is the value of an Amazon account calculated?
2 Factors that influence the value of an Amazon account
3 Data of the account that I am possibly going to sell
How is the value of an Amazon account calculated?
It is not very complicated either. In the end it is done with an annual profit multiple. To be more correct it would be the contribution phone number library margin 1. It would be the data that Shopkeeper or similar tools return to you after subtracting all the Amazon commissions and product costs.
The multiple is 3-4. In the end the buyer always decides its value.
Factors that influence the value of an Amazon account
To know if an account is a multiple of three or rather of four, the following factors must be taken into account.
Account status: an account that has a yellow card or worse is worth less than one in perfect condition.
Own products or reselling: if the weight is more on own products the account is worth more than just a resale one.
Several products or just one
This is more about personal opinion than anything else. You will pay more for an account with several own brand products than for one that is it possible to monetize an app? only sells a single product. It has to do with risk and the possibility of growing the account by adding new products to the catalogue.
Data of the account that I am possibly going to sell
The account I have in mind had a contribution margin of 2,500 euros last year.
According to the multiple it has a market value of 7,500-10,000 euros.
It has a main brand with two lines powder data of different types of products. We were not clear how to focus the brand at the beginning so we tested two different niches.
My idea is to publish account data on the AGP LinkedIn page. I will adapt the sales value based on sales from the last 12 months. If I take that data, the account had a contribution margin of 1 of around 3,100 euros according to Shopkeeper. Then there are B2B sales and stock that I have not taken into account, which increase the sales value to around 30,000 euros.
This would be the package
The buyer actually acquires the company together with the account that has an impeccable financial profile.
Market studies for the two segments and a business plan to continue developing the business.
Contacts for B2B suppliers and clients.
Existing stock of the product.
10-hour consulting package from AGP.
The sales price will increase as sales increase. We are about to launch new products that will make it very easy to increase profits.