Making Your Amazon Business Attractive to Sell in the Current Climate

Jodea Pearl Abalos
March 30, 2020

[et_bloom_inline optin_id=optin_3]

Thras.io buy 2-10 Amazon brands per month (John Hefter), Coran Woodmass does many deals per year and Brandon Young know a thing or two about building big brands and what to do in a downturn.

A bit of a background

Coran Woodmass is the founder and managing partner at the FBA Broker. They specialize in selling e-commerce and FBA businesses.
John Hefter is the VP and founding employee at Thras.io, they buy businesses and brands.
Brandon Young invests in students and businesses where they take minority share.

Peparation

John Hefter’s company has prepared for coronavirus since January. They try to stay ahead of the curve by 60 to 90 days of the brand that they own.
Coran Woodmass also prepared their company for the advent of the coronavirus.
Both companies are also preparing for the ripple effect that the virus is bringing to the market.
Thras.io is still full steam ahead in buying businesses.

Coronavirus Ripple Effect

If this virus will follow the pattern of the other viruses, it will get better as the temperature heats up. However, if it follows other viruses then there may be a second and third wave to it.
Everything is moving towards online stores. The virus will hit brick-and-mortar stores.
We will see some effects on the economy but everybody is home, they will keep on buying as long as the supply chain does not shatter.
There are a lot of unknowns. The likelihood of stability is still really high.
You can build solid brands right now when everyone else is moving away from that niche.
Purchasing: wait for two to three months before you purchase.
It will be a great buyer’s market.

The Window

Look at the longevity of the product.
Look at what you are willing to buy as a consumer.
Be aware of what is happening.
Focus on exit planning and optimizing to make sure your brand is the top 1% of the market.
Those who are prepared and putting money in the sideline are creating opportunity.

The Recovery

A variety of factors leading to recovery:
- Are there anti-viral drugs that will help? Then the fear will go away. Even if the transmission is high IF the treatment can be effective then life can go back to normal.
Clinical trials: 12 to 18 months? This will be compressed. There will be a break during the summer.
- Worst case scenario: massive second wave if the summer does not give us the break we are expecting.
The herd immunity rate will take off. This things do not have a tendency to survive for longer than 18 months.

Other issues

With Italy, they have multi-generational households, high density and lower ICU capacity all contributed to what happened in Italy.
Younger people in the US are seeing in the hospital and will impact the death rate.
Lifestyle contributes to the rates we see.
No reported new cases from China and people are back out in the streets.

Production Facilities and China

The China factories are back up. Supply chains are back up.
Air shipping will be a disaster.
Inventory management– you have to predict the market.

Predictions and Tips

Humidity and heat lowers the transmission rate.
Sales on Amazon are up.
Drill down to your SKUs and your data.
Do not rush on the solar business, first aid kit,hand sanitizers or masks right now– that is a bad idea.
Understand that there is going to be downturn, do your research.
Jump into niches that are taking a hit — look at grocery. People will want to shop online.
Build your business NOW.
if you have cash on the sideline and can come out of this better then do it. DO NOT WATCH MOVIES!

To get help, or if you have any question then get in touch with us: danny@sellersessions.com

If you are looking for help or more information check out: https://sellersessions.com/case-studies/

Connect with our guests:

FBA Broker: www.fbabroker.com or sales@fbabroker.com
Thras.io: ken@thras.io
- Connect with an earn out or profit share that reduces the risk for the people buying your business.
Seller-systems.com

Our Sponsors:

Thrasio – Lead Sponsor https://www.thras.io/
Sellers Alley / YLT Translations – Boat Party https://ylt-translations.com/ & https://sellersalley.com/
Urtasker – Merchandise https://www.urtasker.com/
GEMBAH – Care Packages https://gembah.com/
pingpong – Lanyards https://pingpongpayments.com/
Alex De Lilla – Design and branding https://alexdelilla.com/

SellerSessions LIVE — Tickets SOLD OUT!

Send Danny an email to get on the wait list: Danny@SellerSessions.com

About SellerSessions 2020

Our venue this year: The David Game Keynote Theatre, with tiered seating.
This year we are supporting a charity and a portion of the proceeds will be given to Tomy’s pioneering studies for prevention of babies born asleep: https://www.tommys.org/
We will give away 5 FREE tickets for single-parent Amazon sellers. If you know anyone please get in touch to get the details.
Confirmed speakers and more to come:
- Brandon Young
- Dr Yev Marusenko
- Destaney Wishon
- Zack Franklin
- Nadine Schöpper
- Liran Hirschkorn
- Ivelin Demirov
- Dr Ellis Whitehead
- Paul Harvey
- And yours truly, Danny McMillan. I will be hosting the show and speaking on a topic.