I've been running an ecommerce business for 3 years now and get good sales from Amazon, but have been investing every penny I've earned back into more inventory. I feel it might be the time to cash out soon and use the funds to start a new business and do it bigger. But I don't know where to even start with finding out how much my business is potentially worth. And I don't want to listen to business brokers give me a sales pitch disguised as a "free valuation", at least not until I've made up my mind.
I won't repeat the same info as the previous experts already provided. I will add to it that in order to even get accepted in their marketplaces, your business must have at least 12 consequtive months of sales and show either a steady income for those months or a growing income. The more categories you have ungated will add more trust and more value to your business. The more successful ASINs, the better for your valuation.
Also remember that the business you sell must allow the new owner a way to continue sourcing the products as you do now and the buyer will most likely have you sign a non competition agreement baring you from selling in the same niche or selling on Amazon all together for a number of years.
The price you get is for the business only and does not include inventory. So you need to sell them the inventory separately if they want it.
Answered 5 years ago
Access 20,000+ Startup Experts, 650+ masterclass videos, 1,000+ in-depth guides, and all the software tools you need to launch and grow quickly.
Already a member? Sign in