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Coran Woodmass joins us to talk about buying an Amazon business rather selling one.
- Why would you want to buy an Amazon business – especially as an Amazon Seller
- This is the biggest opportunity in Amazon right now
- Multiples are less that in other businesses right now
- Multiple arbitrage – go and buy several FBA business, put them together and sell them for a higher figure. Increasing your net profit through increased revenue. Larger businesses acquiring other smaller businesses
- Buy a business that is already running and doing what it needs to
What to look out for when buying and Amazon business
- This only makes sense when you:
- Do a stock take on you and your team
- What skillset do you personally have as owner of the business
- What skills does your team have
- If you doubled your business tomorrow, could you cope?
- Do you have access to Capital?
- Struggle to keep up with your own inventory
- Bank will only lend when you don’t want the money 🙂
- Yes, you can find an investor – Coran runs a service
- What is your goal
- Domination of a niche – acquiring competitors
- Looking at margin – optimized your business, turnover of inventory
- Open to buy anything?
- Not a good time to buy – you want your strategy bottomed out first
- You have to be ready and prepared to make this purchase
Selective Buying
- Make sense to acquire smaller businesses in our category?
- One SKU s their winner and thy have a couple of others.
- Makes sense if you want to add that line to your product offering
- Look at doing micro-deals – putting them together and selling them on for a bigger multiple
- The return on time in doing this with ‘small’ businesses then consider how much time is needed for finding this…
- Integrating a new business
- Take the listing and put it into your account as aligned
- Do a brand transfer to your existing seller account
- Having more than one Amazon Account
- Reach out to Amazon and be very upfront that you suggest
- Every case is different and so need to speak to Amazon on this
Acu-hire a team
- Buy a team with skills that you don’t have
Sourcing System & Team
- Buy a company for its marketing team and the strategic aspects are good
- Sourcing and cold-outreach
Top 5ish
- Why do you want to acquire, can you expand
- How will you fund it, investor, extra cash yourself
- Run your numbers and get an idea for what you’re looking for
- Put your filters on and research then go to market – maybe wait
- Options when buying – a $100m – look at bigger businesses, they have borrowing or credit setup that you could actually leverage in buying it!
- Look at the Category or Margin approach
- All in your account or have a 2nd account
