Top Strategies For Maximizing The Value of Your Amazon Business
Recognizing and implementing executable growth initiatives is a key part of developing a defensible Amazon brand. These strategies can generate additional revenue in the short term while adding to the long-term value of your business.Whether an exit is on the horizon or still a long way off, it’s always a great idea to build a business with a potential sale in mind. 2021 is the ideal time to reassess your goals and refine your exit plan. The recent surge in e-commerce traffic has led to a corresponding surge in M&A (Mergers & Acquisitions) deal flow, with an increased interest in digital assets. Traditional blue-chip investors and online veterans alike are seeking to acquire well-established, strategically positioned e-commerce businesses. Amazon businesses are in high demand. Take advantage of the momentum now to grow your brand so that when the time comes, you are prepared to exit for the maximum value!
Amazon-Specific Growth Strategies
Amazon businesses differ somewhat from other e-commerce businesses. The platform’s built-in analytics tools and vast logistics infrastructure empower sellers to expand in ways that would be impossible, or would at least be much more difficult, were they operating independently of Amazon. Here are the top strategies to grow your Amazon business and maximize value.
Expand Into International Marketplaces
Amazon is actively expanding its logistics infrastructure in international marketplaces such as Italy. Additional hubs will make it easier for sellers to establish a foothold and gain traction without investing heavily to get set up abroad. Seek opportunities to expand outside of the U.S., especially in Amazon Marketplaces with low competition. Launch new products with universal appeal that will rank fast to boost conversions and capture more market share.
Develop Focused Digital Marketing Campaigns
If you haven’t dedicated much time to digital marketing, now is a good time to start. An efficient pay-per-click campaign targeting both broad and long-tail keywords can pay dividends. There are many purpose-built tools available to sellers, but it may also be beneficial to consult with an Amazon agency specializing in PPC campaigns. An established relationship that can transition with the sale of the business is valuable, making it possible for a prospective acquirer to quickly take over and scale digital marketing strategy with relative ease.
Create a Detailed Product Road Map
Prospective acquirers value brands that are primed for rapid short-term expansion. You can showcase your Amazon business’s growth potential by developing a comprehensive product road map. Include plans for new products and variations of existing products, as well as any templates you may have for creating optimized listings on Amazon. Essentially, you will hand the new owner a blueprint for successfully launching multiple products in quick succession.
The Off-Amazon Opportunity
Channel diversification is incredibly desirable. Many prospective acquirers will pay a premium for businesses with a robust online presence and proven sales across multiple platforms.Off-Amazon growth opportunities demonstrate that your business is not completely dependent on one marketplace and that your success can be replicated outside the vacuum of Amazon. Thus, investors are not only able to see where your company has been, but where it can go in the future. There are several strategies you can use to help your business stand out.
Diversify E-Commerce Sales Channels
If you aren’t already, consider selling through additional marketplaces such as Walmart or Wayfair. This will boost off-Amazon sales and help your company appeal to a broader base of consumers. Moreover, prospective acquirers will feel more confident in their investment as they are not placing all their proverbial eggs in one basket.
Develop Your Own Direct-to-Consumer Sales Channel
Additionally, you can pivot away from third-party platforms entirely by launching a fully optimized e-commerce website. Direct-to-consumer sales generates improved margins and grants you complete access to all your customer data. You can achieve comparable shipping and storage options by partnering with a reputable third-party logistics service, potentially at a better price point.
Selling Your Amazon FBA Business For The Maximum Value
The M&A process is complex and requires advanced preparation. Implementing the above strategies 12-24 months in advance of your anticipated exit date will help increase the value of your business while you gather the necessary documents and engage an intermediary to represent you in the sale. An experienced Investment Banker can help position your business to achieve your ideal exit and assist you through each step of the transaction. When it comes time to close, you can walk away completely satisfied that you earned the maximum value for your Amazon business. About the AuthorCHRIS SHIPFERLINGManaging PartnerAs the first point of contact for our clients, Chris offers invaluable insight to help sellers and buyers reach their full potential before and during, and after the sale of their business. Chris also serves as the Head of Business Development for Global Wired Advisors, leveraging his background in sales and digital marketing to grow our brand. For the past seven years, he has focused exclusively on high-level consulting for multi-million-dollar omni channel, digitally native, and Amazon-based private label and re-seller brands.Chris is especially adept at finding Client Companies that are poised for sale, guiding them through the initial steps, and preparing them to make the best possible first impression. Chris enjoys working closely with owners throughout the process of selling their business, getting to know them on a personal level so that we can better assist them in realizing their goals.Global Wired Advisors is a leading Digital Investment Bank focused on optimizing the business sale process. Our approach combines decades of merger and acquisition experience with online and e-commerce expertise to increase the transactional value of your greatest asset.Maximizing the value of your company in a business sale is achieved through the full expression of its future potential. Choosing the right representation to provide this vision to the right buyer, means putting your future in focus.
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