Is it reliable to sell or transfer Amazon stores?
Generally speaking, the ultimate goal of purchasing an Amazon store is still to obtain a huge return on investment. For many entrepreneurs, acquiring an existing Amazon business is more feasible than starting from scratch.
Amazon's store is not cheap, with costs ranging from 18 to 36 times the monthly profit. For example, if a store makes $10,000 a month in profit, its selling price could be between $180,000 and $360,000. This usually does not include the cost of inventory. You can open a professional Amazon selling account for $40 per month, but the time, money, and effort required to run a profitable storefront is enormous.
So since you are going to buy a store, there is a difference between that and opening a store yourself.
What should I pay attention to when buying an Amazon store?
1. Product source
Amazon has three main business types:
Private Label
Buy directly from suppliers or wholesalers
Retail Arbitrage and Online Arbitrage
Private label businesses are typically the most valuable, while arbitrage businesses are valued less because they require significant ongoing effort and lack a true, unique competitive advantage.
2. Business duration and sales history
When choosing a store, you may find many new stores with skyrocketing sales performance, but often good stores will continue to grow in the next few years. In fact, you should choose such stores with potential utilization value. Another thing to be aware of is the extreme seasonality of product sales.
3. Product review quantity and quality
This mainly applies to private label stores, while product reviews are much less important for stores with a large number of third-party products. Looking at product reviews can give you a better idea of the store’s customer service, and you can use a free Amazon review analyzer like Fake Spot to make sure the reviews are legitimate.
4. Have SOP (Standard Operating Procedure)
Generally, good companies will have good SOPs (standard operating procedures), which are internal procedures designed to execute complex daily affairs within limited time and resources. Stores with high-quality internal procedures are easier to take over.
The above is the relevant information about selling and buying Amazon stores. If you want to get more information about Amazon stores, please continue to pay attention!