There are several types of business models on Amazon, they are either aimed at creating your own brand, or at reselling third-party products.Reseller models are:
Branded products are:
- Retail arbitrage;
- Private label;
- Proprietary products.
When it comes to selling your Amazon store, the buyers would rather look into acquiring an FBA business, and Private label or proprietary products are more attractive for the investors, as far as you own and control the brand, supply chain, and the business process as a whole.
The brand itself is an asset and the investor can hope that it will continue to sell in the future.
If you sell under any of the reselling models, like wholesale, retail arbitrage, or dropshipping, then your business is less attractive to the buyer. There are several reasons behind it, but the main one is that the investor doesn’t have full control over the business he acquired.
The investor can face increasing competition in the category, problems with the supply chain, and product performance can be an issue with time.