Selling Your Successful Amazon Business: A Buyer’s Perspective

Like what you're reading? Subscribe for more actionable tips & insights from BRANDED!

We're sharing the best secrets from our successful Amazon & DTC brands that you can leverage to drive results.

In 2022, the global e-commerce market is expected to exceed $5.5 trillion – with $1.06 trillion of those sales being in the US alone. And yes, you’ve guessed it – that growth is only expected to continue skyrocketing, with a predicted 24.5% of all sales being made online by 2025. 

What’s more, with over 300 million customers in over 180 countries, Amazon is, and will continue to be, a major leader in the e-commerce market. Third-party sellers now account for over half of Amazon’s business, and sell more products on Amazon’s marketplace platform than Amazon sells itself.

Is Your Brand Our Next Global Smash-Hit?

If you have decided now is the optimal time to take advantage of this strong market, at BRANDED we are excellently positioned to help you realize your business’s potential for growth in this e-commerce boom era. We’re constantly on the lookout for superstar e-commerce brands to work with. 

Whether your company has experienced a period of high growth and you want to pass along management to a more experienced team; you’re looking to finish a chapter in one business and move onto the next venture, or you’re planning on executing a profitable exit strategy – a smooth and transparent acquisition could be the right move for you.

BRANDED boasts a winning combination of decades of expertise and expansive operational knowledge. With our team of e-commerce pioneers, we have unrivaled success in driving immediate impact in transforming successful e-commerce businesses into global household names.

So, we’re confident in our ability to to find those brands with untapped or unrealized promise and we are happy to share what sellers can anticipate from the acquisition process.

Do you want to know if BRANDED would make a good match to evolve and amplify your business? Read our quick guide on what you’ll need to know when it comes to selling your brand, and what star elements we’re looking for to make a winning combination.  

What are We Looking For?

First and foremost, we need to know that you are a real geek about your products. It shows us that your business is likely to be different from anything else out there. You’ve done your research, dedicated the countless hours required to ensure the best product development and you know your brand inside out. This gives us confidence that your business will have longevity in the marketplace – no flash-in-the-pan or trend-chasing brand will have the expertise you do. 

If you’re a founder who considers themselves a bold and agile ‘Amazon business ninja’, then we want to hear from you. Understanding the nuances of the Amazon algorithm to drive sales, getting the most out of marketing tactics to rank and review highly – without resorting to ‘black hat’ tactics – is a real skill that not every business owner possesses. 

We love the sort of founders that have built a real community around their brand and products and can leverage this as the business accelerates growth. BRANDED wants to know whether your business could be a $100M challenger brand – what is your potential? Are your brand ambitions far-reaching and bold? Are you willing to break through existing conventions to transcend your category limitations?

Brands that know where their future opportunities lie and that can demonstrate areas in their business that may be under-optimized hold great potential. It may seem counterintuitive to point out things that your business isn’t doing (yet), but to an investor, it shows that your brand will continue to have potency post-acquisition. 

Why Do We Choose Amazon Brands?

We choose to focus on Amazon brands that are already successful on Amazon marketplaces but also have a strong omnichannel potential. 

Amazon is just the launchpad. We know it’s unlikely that a brand is going to smash the $100M ceiling with only Amazon distribution and reach, so we’re always looking for e-commerce businesses that also have a future in both Direct-To-Consumer sales, in retail stores, and across global markets. 

One of the benefits that Amazon brands have over other businesses is a demonstrated product market fit. Amazon is an efficient marketplace with fierce competition – if you were able to make a name for your brand it means your products offer consumers something they want, be it price, quality, design, or other. Moreover, everything your brand and listings possess on Amazon has demonstrable value and contributes towards the future success of your business – from the number of reviews that you have to your existing equity. 

Businesses that have a unique space or offering are more likely to survive long term in a congested marketplace. Finding new customers on Amazon marketplaces is easier and cheaper than other routes, as it has built in traffic and a receptive customer base. Your customers are already there, searching for your product – you just need to be at the top of the list! At BRANDED we see real opportunities for successful businesses on Amazon to reach even bigger heights off the marketplace, and the sky’s the limit for brands with potential. 

4 Common Acquisition Pitfalls You Can Avoid 

Before embarking on the next phase of your business journey, there are some vital considerations definitely worth mulling over.

The BRANDED team have put together a few of the most common mistakes businesses can make during acquisition (so you can avoid them!):

Mistake 1: Not ensuring your buyer aligns with your vision for your business. A common mistake, but one you can avoid making by doing your own research on your buyer and asking questions around their strategy for growing your brand.

Mistake 2: Not completing your own due diligence exercise for your business prior to sale. It’s vital that you have given everything a good health check to achieve the maximum value possible. Think about the reliability of your suppliers, your contracts and secure any assets or IP rights you might have. Evaluate each element of your business carefully, including any areas of risk you might want to disclose. We’ve put together a practical list of factors that make up your brand’s valuation in our post here.

Mistake 3: Not checking references! Ask to speak to another business founder who has worked with your buyer and find out what their experience was. Check your buyer’s operational credentials – are they experienced in e-commerce, what skills and firepower do they bring to the table to get the most out of your brand? Is your potential buyer’s business plan for growth a realistic and achievable one?

Mistake 4: Assuming that as soon as you’ve agreed a sale, you’ll be pocketing the profits the next day. After all parties have signed on the dotted line, there is still a lot of work to be done to transfer ownership to ensure the success of the sale. As standard, there will be a period of due diligence – usually 4-6 weeks – to give buyers the chance to verify everything is in order with your business, and that you’re happy with everything they are offering as a buyer.

Don’t be afraid to evaluate your buyer. You will want to know that your business is in good hands and that your buyer is going to follow through on everything as you expect. Check that they are someone you trust and that they have shown good business practice through their dealings with you.

So Why BRANDED?

Powered at each stage by our expansive operational know-how and proprietary technology products and analytics, BRANDED looks to boost your business, leapfrogging your competition by identifying and pursuing immediate opportunities, tackling operational challenges and launching long-term, international growth.

We love partnering with passionate entrepreneurs and growing your business together on our platform. We pride ourselves in being reliable business partners that bring a lot to the table.

We understand that selling your e-commerce business is an incredibly important milestone, and we are fiercely committed to making the whole process easy and transparent. We offer all our brands a complete service, including extensive post-sales support and prioritize fairness and openness in all of our deals – we know it’s important to get all of the details right.

If you’d like to know more about our international growth plans, or want to hear about how we’ve helped other brands accelerate their businesses, read more on our brand stories page or get in touch with our team.

Copyright © 2021 BRANDED E-Commerce Holding GmbH • BRANDED ServiceCo LLC
en_US
en_US