How To Sell Your Amazon FBA Business For High Price

Hi! Have you ever thought about selling your Amazon FBA business but didn’t know where to start?

If so, you’re in the right place! 

A few months ago, I had an exciting conversation with Amazon seller Tomer David from Sourcing Monster on my YouTube channel. 

Tomer is an impressive 7-figure seller who managed to sell his business for $1.7 million in just three years!

During our chat, Tomer shared so much valuable information. 

He opened up about the real reasons behind his decision to sell and gave some fantastic advice for other Amazon sellers who might be considering the same path. 

Our discussion was part of a larger interview where we explored how Tomer successfully sold his business for seven figures.

Oh, and here’s a little bonus: Tomer mentioned the broker he worked with. 

If you decide to do a deal with Fortunet, mentioning Tomer’s name will help support his journey.

Tomer's Broker (Mention Tomer's Name If You'll Ever Be Doing A Deal via Fortunet, It'll Support His Journey :)

 

So, if you’re curious about what it takes to sell your Amazon FBA business for a great price, keep reading! 

You won’t want to miss the insights that could help you on your own selling journey!

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How to Sell Your Amazon FBA Business for a Great Price

Vova: Tomer! I think you've already shared a lot of helpful advice for those looking to sell their businesses. 

We talked about how to prepare your business for a sale once you’re in the process. (Referring to the full interview) 

But what about those who are just starting out or even those who haven’t begun yet? 

Special Blog Tailored for Learners: Learn From a 7-Figure Amazon Seller: Top Tips for FBA Success

For example, my business has been running for about a year. 

This year, we’re expecting to make around $600,000 to $700,000 in sales, and our profit margins will probably be around 25%. 

In the past years, we were closer to 20 percent. 

This year, our prices have increased. 

So, if I’m considering selling my business, what should I focus on? 

I actually received an offer earlier this year for $2.2 million based on last year's profits. 

However, that’s not as high as I hoped for, so what should we keep in mind if we’re thinking about selling in the future? 

How can we structure our business for a better exit?

Tomer: First, I recommend that you don't rush into selling your business for $2.2 million.

It’s important to be patient. 

Selling a business that is successful and makes a lot of money for such a low price doesn’t make sense. 

In most businesses, it’s unusual to sell for just two times your yearly profits. 

Sellers right now shouldn’t accept those kinds of offers. 

The reason we see these lower numbers is because of the current balance of supply and demand in the market. 

Right now, there are more businesses for sale than there are buyers. 

However, when the economy improves, you can expect those numbers to go up as well. 

In the meantime, you can focus on growing your business. 

Increasing your revenue can help attract a larger number of potential buyers.

To add more products to your Amazon business, you need to keep investing your earnings. 

Read This Expert Advice: Sell Your Amazon Business for Millions: Step-by-Step Guide from a 7-Figure Seller

It’s not a completely passive business. 

If you make $100,000, you might be able to take out $10,000, $20,000, or even $30,000. 

But for me, it felt scary.

I worried that I was putting all my efforts into one place — Amazon. 

This made me anxious, and I wanted to ease that fear. 

Honestly, that was the main reason I decided to sell my business. 

It wasn't because the business wasn't doing well; it was more about my personal worry of losing everything I had built.

Vova: That makes sense. 

Running an inventory-based business can be tough. 

We talked about this recently during a call when I shared my experiences with my affiliate business. 

It’s completely different. 

I enjoy both selling on Amazon and working with affiliate marketing. 

However, the affiliate side doesn’t involve any inventory. 

I can create content when I want or even take a break, and I still see some income coming in if it’s set up correctly.

With an inventory-based business, things can feel more challenging. 

Even if you decide to let go a little, there are still responsibilities. 

You have to buy inventory, keep track of stock, and ensure that you’re making enough money to invest back into the business.

It’s a constant cycle of needing to reinvest, which is perfectly fine. 

This was one of the reasons, as you mentioned, that made you start thinking seriously about selling and eventually took action.

Relevant Read: 10 Popular Questions Amazon FBA Beginners Ask [With Detailed Answers]

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Conclusion

In conclusion, talking with Tomer gave us valuable insights into what it takes to sell an Amazon FBA business. 

He highlighted the importance of being patient and preparing your business for a successful sale. 

If you’re thinking about selling, remember that it’s crucial to grow your business and maintain a solid revenue stream. 

Selling shouldn’t be rushed, especially when you know your business has potential. 

Keep investing in your products and focus on building a strong foundation. 

Thank you for joining us today, and I hope you found this conversation helpful as you think about your own Amazon journey.

P.S. As I mentioned, Tomer opted for Fortunet as his broker.

I’ve also included a video review of the company below.

Check it out to see if Fortunet could be a valuable resource for you!

If you decide to work with them, mentioning Tomer’s name will help support his journey too!