Life After Exiting 2 Brands on Amazon

Dan Little is with us talking through the exiting process of selling an Amazon business. What to consider when setting up the business, the accounts and sales data, making sure a structure exists, the sales process itself and what to expect.

First Business – 2014

  • Started in Aug 2014
  • Single product selling across 5 x European marketplaces
  • Allowed Dan and Family to quit their day jobs
  • Sold it in Apr 2016

Selling an Amazon Business

  • Hadn’t thought about selling it – FBA High Rollers (Manny Coates) or FBA All Stars (Matt)
  • Was talking about selling his business via Empire Flippers
  • Shocked at 15% cut they wanted
  • Started a 2nd Business with a Partner
  • Had overlap with this new business which was now 3 products and twice the size of the previous
  • Wanted to sell the first business to realise some cash from the business

Brokers take 15%

  • Looked around and found other brokers, not just Empire Flippers
  • They all seemed to be around the 15% mark
  • Not wanting to go it alone, Dan went with them

Information you Provide

  • On-boarding process
  • Submit really basic form to get a feel for valuation
  • Turnover, profit margin, costs, etc
  • Got a multiple on your net profit earning each month
  • You got your bottom line and the multiple on top
  • Listed for a 28 multiple
  • A bit more risky as it was a single product business
  • Then they send you a spreadsheet to complete covering from the start of your sales
  • On the new business they have automated this process step

For Sale Sign is up

  • Once it’s on the marketplace
  • They do a video of you the seller that asks questions through the numbers
  • A really good idea to enable the answers to obvious questions to be done
  • This removes questions from the closure call to speed up the closing
  • Had 10 Calls then 2-3 people put offers in and closed

Selling Business No. 2

  • Aimed at 3-5 years to sell the business
  • One year before the sale, cut back on unnecessary subscriptions and costs
  • More structured accounts a year before sale
  • Made the process of selling so much easier
  • Anything > $1,000 in a month had to be broken down by product and marketplace
  • Things like showing FB ads costs per product

Empire Flippers again

  • Used Empire Flippers again for this second business
  • Had 4 x Products in European Market and 2 x Products in the US market
  • Nov 2015 started and sold in Oct 2018 – almost 3 years
  • All under 3 x brands and 50 variations and 20 x SKUs total
  • So 3 x Brands, 6 x Products, 20 different variations across EU and US

Sales Profile

  • Most prominent 70% Europe and 30% in US profit breakdown
  • Started in Europe and then expanded into US
  • Took products doing well in the UK and then moved them to US
  • Really high earning products
  • Some products were doing 100+ units per day

Product Launches

  • Used the same approach to launches across the 15 x Launches
  • Was FB ads to a landing page with an 80% discount coupon code send them via the storefront URL link and in 3 days you were ranked
  • Then started using longer tail keywords and once reviews were on you’d use the shorter keywords
  • Then tried ZonBlast and took 14 days and was very expensive
  • Latest is Internal Amazon ads – sponsored products with some external Facebook traffic with 20-30% off

Learning from the Misses

  • Out of 6 products, had 15 x Launches
  • Everyone has hits and misses
  • Had some infringement issues
  • So avoided patent or trademark infringements
  • Most products on ’trend’ will come up and drop down again
  • A lot of Dan’s products. Started at 25-26% profit but in a down-tail on trend so cut these back

Sales Process for the Second Business

  • Explained the hits and misses to the prospective buyers
  • Took less than a month to sell the second business
  • Q4 was coming and started talking in Sept and wanted to move it in October to capitalise on Q4 earnings
  • Made a lot of sense for them to close early
  • Dan was very organised and Empire Flippers had all the info
  • It was a good business and straightforward to take over

The Exiting Arrangements

  • When exiting you can get the payment up-front mainly for smaller businesses 100% up front or 14 days after, etc after payment held in Escrow
  • Or another way is Earn out: Get a % up-front and then 2-3 payments over 6-12-18 months
    • You want to get as much up-front and as short a period after to get the money into your pocket

Life After the Exit

  • Started the next business 6m before exiting the second business to have the overlap
  • Not an Amazon Business this time
  • A software as a Service Business linked to Amazon
  • It’s a tool to help sell businesses and exit
  • The software takes all the Amazon sales data and arranges it into a structure to import into Xero
  • There is other software that does a similar thing but was more complicated to setup and use

New Business – Software as a Service (SaaS)



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