5 Steps to Prepare Your Amazon Business for Selling
If you have an Amazon business and you’re reading this, you could be considering moving on to your next project or simply taking a break. You want to ensure that the sale of your Amazon business goes smoothly and that you receive what your company is worth because you have invested a lot of time, money, and effort into it.
This guide on how to sell Amazon account offers the essential steps you need to know in order to prepare your business for sale in order to make maximum profit, regardless of whether you are leaving the platform altogether or selling your Amazon business to start another one.
- Get Your Finances in Order
Making a profit and loss statement is significantly simpler when your finances are in order. When selling your firm, the profit and loss statement is the most crucial document you will require. It often includes all of your receipts and payments, as well as the gross profit and monthly gross revenue of your company and even which stock-keeping units (SKUs) bring in the most money.
In general, it’s a good idea to keep track of your finances, but selling your FBA business makes it much more crucial. If possible, hire an accountant to review your finances once a year.
- Establish Standard Operating Procedures
Buyers frequently opt for a business that’s easy to run and doesn’t need a lot of their input. Making SOPs (standard operating procedures) is one strategy to reduce the requirement for owner input. SOPs not only facilitate the automation of processes for more effective operations but also make the transition for the new business owner much easier.
Spend some time creating and documenting a step-by-step workflow of your processes. This will enable you to learn how long a task takes to complete and even make adjustments to your processes in order to make them run more quickly and with less effort. An Amazon business with effective procedures and standard operating procedures to refer to reduces the amount of time it takes a buyer to get your business up and running at optimal levels.
- Organize Your Stock-Keeping Units
Review your list of stock-keeping units (SKUs) to identify which you can delist in order to effectively cut the excess from your FBA business caused by unprofitable items or inactive listings. Too many active stock-keeping units on your Amazon store might make maintenance difficult or even impossible. The ideal product range, according to experts, is between three and eight.
This is a number of SKUs that is both manageable and large enough to offer an excellent selection of products that each contributes to the store’s bottom line, two features that buyers find quite attractive.
- Review Your Inventory
It’s crucial to have a general notion of how much inventory your company currently has, whether it’s in storage or on its way to warehouses.
Avoid making any significant adjustments if your company is under review in order to minimize the impact on your revenue and traffic levels. Above all, keep operating your company as usual to prevent a decline in performance.
- Go Through Supplier and Employee Contracts
It’s common for Amazon businesses to hire freelancers or internal staff to assist with managing all the many tasks. Ask freelancers with whom you’ve built a rapport after frequently employing their services if they’d be open to working with a different client. They are probably going to answer affirmatively because they are aware of the standards and expectations regarding their work. This will save the new owner time by not having to search for qualified employees to carry out the same responsibilities by having experienced hands on deck to continue the business.
In addition, make an effort to ensure that any contracts you may have with suppliers and vendors as a result of positive working relationships will remain in place following the sale. The buyer will value inheriting a positive working connection with a dependable supplier who has an exclusive agreement in place to simplify the ordering process.
Final Thoughts
Selling an Amazon account is a complex process that can take months. The five steps described here represent a part of a much bigger puzzle that involves the valuation of your business, taking steps to increase its value, etc. We advise you to move slowly, consider what you want from the sale and the buyer, and think about whether you need outside assistance from an online business brokerage company to speed up the process and maximize your profit.
