Am I allowed to start a new Amazon business?

Unsurprisingly:

Of the 300+ Amazon sellers we have spoken to, the vast majority said that they are ‘going again’ with another FBA brand once the existing business is sold.

And let me guess:

You would do exactly the same, right?

We don’t blame you.

In fact, having cultivated the skills and experience of what it takes to be a successful Amazon seller, some might argue that you would be crazy to walk away now.

But listen:

Before you get too carried away planning your next brand, there’s one key thing to consider.

You see, it’s highly likely that the terms and conditions of your sales agreement will include a restrictive covenant.

What makes this so important?

Well, the covenant will essentially prohibit you from starting another business in the same product category.

Perhaps unsurprisingly, it is put in place to protect the buyer (aggregator) from you directly competing against them within a certain period of time.

This is often set at 2 years.

Bottom line:

Amazon aggregators are a pretty reasonable bunch and generally have no problem with you starting another FBA brand.

Of course, there is no harm in you maintaining good relations with old suppliers following the sale of your business.

But do not, under any circumstances, breach the terms of the covenant.

For the sake of your peace of mind, swat up on a new niche and stay well clear of anything comparable to the old.


Interested in finding out more?

Click here to compare over 150 aggregators in 3 simple steps. We will then reveal the select few companies that are most likely to offer you the highest valuation.

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Step 1

Select your revenue and number of SKUs

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Step 2

Tell us your product category and profits

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Step 3

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