AF206 - Can I Sell My Amazon FBA Store Business?

amazon fba guest experts Aug 06, 2021

Whatever stage your business is at these days, having an exit strategy is always super important, and today we have an expert in the field to not only explain why this is, but also to share his valuable advice on how to go about it successfully. Serial business entrepreneur, Thomas Smale, is the CEO of FE International, an industry-leading firm that offers technical, diligence, and negotiation advice to business owners to help ensure successful exits for them. This is such an important aspect of your business that doesn’t always get the attention it deserves, but we’re definitely putting it under the spotlight today.

Thomas starts us off by explaining a bit about his company and what they do, and then sharing his background and how he got to where he is today. Together, we then look at the importance of starting with the end in mind, growth rates, how long you should be in business before considering selling it, and the perspective that buyers have regarding a business’ revenue growth vs. their actual profit. We also explore the help that FE International provides business owners in getting the price they want for their business, what buyers are looking for today when acquiring Amazon FBA businesses, and the steps involved in preparing for an exit. I can’t stress enough that you are building a sellable asset as you run your business, and it’s crucial to keep this fact in mind as you progress. It is undeniable that Thomas Smale and his team have a vast amount of expertise and experience to share in this critical area, making this episode, truly, a ‘must listen’ for everyone. 

This week on the Amazon Files:

  • FE International and the work they do
  • Thomas’ background
  • The importance of starting with the end in mind
  • Key things to do now to ensure a successful exit
  • Growth rates
  • The length of time in business before considering selling it
  • Buyers’ perspective on revenue growth vs. actual profit in the business
  • How FE International helps business owners get their desired price for their business
  • What buyers looking to acquire Amazon FBA businesses are looking for these days
  • Preparing for an exit 

“If you are taking care of your business, running it like a business, have some procedures that you can at least pass on to someone else and start documenting that, you have or are building a sellable asset.” 

- Kristin Ostrander 




“We primarily work with people who want to sell their business, and we will help them prepare the business for sale, increase the value and then, ultimately, what we get paid for is physically selling the business.”

“I'd be buying a domain for like $50, and then maybe putting a website on it or doing various things, and then maybe at the end of the month, I'd sell it for $200.”  

“When you're first starting something, you have no idea what you're doing, and you just keep doing it and keep improving upon it until you can turn it into something,”

“So if you think of it like that you're making 250,000 a year, you also have an asset worth seven figures. If we think about that from the start, then you're always thinking about what you can potentially do with that sort of money.”

“That's definitely the way to go into it looking. It's not just the cash that you’re making, it’s the asset value building as well.”

“What I love about building a business is that at the end, whatever that is...I can sell this business and invest that into my next endeavor, or I could retire or I could pay off my mortgage, or whatever it is.”

“Buyers only want to buy a business that's consistently making money.”

“I would say, rule of thumb, at least for me, businesses should be making about a 20%. net margin or, or better, on average.”

“We'll figure out where you are now and where you need to get to.”

“Almost any business making over a million dollars in sales is probably going to be popular at the moment.” 

“There's a huge amount of demand out there at the moment for Amazon FBA businesses. There's never been a better time in history to launch an FBA business. There's so much demand out there.”

“Your business does not have to be making seven figures to sell it. Your Business has to be profitable. It has to have some profit in there and you have to have some pretty plain and simple procedures for someone who is going to take it over for them to follow so that they can keep this same growth that you have.”

“Say you want to exit in six months, now is the time to get your books in order and start writing down the different procedures that you do so that when you present your business for a potential's very appealing to someone who wants to acquire it, because you have all of your duckies in a row.”

Related Content:

Grow Your Amazon Business!

Thanks for tuning into this week’s episode of The Amazon Files, the show to help Amazon sellers along their business journey one step at a time with Amazon expert and your host, Kristin Ostrander. If you enjoyed this episode, head over to Apple Podcasts, subscribe to the show and leave us your honest review. Don’t forget to share your favorite episodes with your friends on social media! Use the codeword Exit Plan to join us on Facebook. Each week, Kristin hosts a live discussion on how to grow your Amazon business. Don’t forget to check out our website and subscribe to our mailing list for even more resources.

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