Once again:
It’s impossible to provide a definitive answer to this question.
And the reason?
Because each Amazon aggregator has specific buying criteria, and even that can change from one acquisition to the next.
Some aggregators insist on a diverse mix of sales whereas others prefer 100% only Amazon businesses.
Of course:
If you invested significant time and money in a highly optimised Shopify store, for example, this is certainly not going to hinder your deal.
In fact.
Sales outside of Amazon FBA can be extremely attractive, to the right buyer.
We have seen deals where the seller had – incredibly – managed to wean their business off Amazon FBA to the point where orders from Shopify, eBay, and Esty made up nearly 50% of sales.
Pretty impressive, right?
We think so.
As Warren Buffett famously said:
Diversification is a protection against ignorance.
And certain Amazon aggregators would agree.
Indeed, in the 50% Amazon FBA, 50% non-Amazon deal above, we had three separate aggregators bidding against each other for the right to acquire the brand.
The seller eventually held out for a 6+ times multiple, and good on him.
With that being said:
It’s important to note here that DTC (Direct to Customer) channels, like Shopify, represent their own challenges.
As I’m sure you’re already aware.
Third-Party Logistics (3PL) fulfilment and shipping costs make DTC profitability a harder nut to crack, especially when compared to the crazy-cheap fees of Amazon FBA.
So what does all this mean?
Well, it’s safe to say that if orders from Amazon FBA represent between 90% to 100% of your total sales, practically every Amazon aggregator is going to be interested in taking a closer look at your business.
Subject to the usual revenue and margin thresholds, already discussed.
If you have significant non-Amazon sales, your time is best spent talking to us first, rather than wasting precious energy researching the entire market.
Make no mistake:
Regardless of sales concentration, there is an Amazon aggregator out there for each type of business.
The trick is to find them before they snap up your competitors.
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.
