#1. Product Category
Amazon business aggregators are majorly interested in buying ‘evergreen’ products. This means, that the product shall be able to generate consistent sales and profits. Therefore, they are not very likely to consider businesses that sell, for example, fashion closes or electronics, because it becomes outdated in a short time span.The most popular categories are:
The least attractive categories are:
- Home and Garden;
- Pet Supplies;
- Baby Products;
- Health and Personal Care.
#2. Business Type
- Fashion product.
Rollups typically prioritize private label FBA businesses for sale. The reason behind this is that private label brands, trademarks, design, and product patents are considered assets thus increasing the store’s value.
Businesses that sell a combination of private label and wholesale products are also viewed as attractive.The most attractive businesses
are private labels, FBA;The least attractive businesses
are solely wholesale.#3. Business’ Operating History
A generally accepted business’ “lifetime” is over 1 year. This operating period allows to track growth trends and analyze business sustainability.
The most popular: 2-year-old business;
The least attractive: less than 1-year-old business.#4. Annual Sales
Amazon businesses generating over $1 M in annual sales are considered the most interesting for buyers.
However, depending on the buyer and brand, they may consider buying businesses generating less than $500 K in sales, but having high growth potential.
The most popular: around $3 M
Less attractive: less than $500 K#5. Account Type
Typically, acquirers prefer to buy a company, but this rather depends on the marketplace and legal regulations applicable. In certain cases seller account is also accepted.
This is because the buyer acquires assets and not the legal entity.#6. Marketplace Geography
Though businesses that sell in the US/CA marketplaces are in principle prioritized, operations in all 20 marketplaces are accepted if they generate sales volumes.