Amazon Aggregator and active trading market
sinceSince the beginning of 2021, Amazon store transactions have entered a relatively active period. From 2020 to now, according to incomplete statistics, there have been 60 or 70 Amazon Aggregators (Amazon Brand Accelerator) in the market that mainly purchases Amazon stores, of which nearly 10 have set up offices or recruited Chinese agents in China, and the list of 1000 target stores is widely circulated, These 1000 stores are regarded as ideal brand acquisition targets. Many sellers may have received more or less emails or other communication requests from some buyers or even agencies in the near future. Many seller friends may have heard that a nearby seller friend has made a big profit through the sale of the store, and even some seller friends who have completed the sale of the store further exclaimed that "the sale is cheap" after learning the current market, This prosperous scene can be attributed to the following reasons:
1、The seller has been banned, which increases the operational risk. From this yearSince May, a large number of big selling brand stores have been closed, involving many well-known top big sellers in South China. To some extent, the policy orientation of Amazon's number blocking has hit the confidence of some sellers to continue their business, and then they choose to sell their brands and cash out.
2、The soaring logistics costs have increased the operating costs. For the freight of sea transportation, the recent price increase is really large. The price goes up with the market, and the shipping space is really tight, so it is difficult to book shipping space, especially recently many sellers are preparing for the peak season. As the freight increases, the shipping company's peak season surcharge also comes, which undoubtedly further increases the seller's cost. In addition to the impact of the epidemic, the shipping delays caused by the epidemic also pose a certain challenge to the seller's ability to prepare and operate goods. At such an opportunity, some sellers may directly choose not to stock up in bulk in the second half of the year and prepare to sell their brands.
3、Brand accelerator companies have entered China on a large scale. As mentioned above, some buyers make great efforts to lay out the Chinese market, hire Chinese staff for Chinese sellers, and even some buyers directly give universal policies. As long as the recommended stores successfully complete the transaction, they will giveWith the reward of 5-10w dollars, there are also many intermediaries or individuals who carry out matchmaking transactions on the market, directly promoting the prosperity of the Amazon store trading market.
Shop transaction price
At present, the general price of the store acquirer is calculated as follows:
Project valuation =Total gross profit in the last 12 months × Valuation multiples.
The valuation multiple isBetween 3-5 times, the main reference factors include: growth rate of income and gross profit, product life cycle and product fortress, and brand fan base.
Portrait of a saleable shop
Generally speaking, the acquirer prefers stores with the following characteristics:
Behind the maniaPit
Stimulated by the above factors, the store trading market also showed considerable activity. At the peak, Ciheng team needs to communicate within a weekThere are more than 50 sellers, but under the current fanatical appearance, the number of stores that really successfully completed the transaction is not as large as expected, and some transactions have even been slow and repeated. The shop transaction is not simply buying and selling, but involves the transnational flow of capital and assets. The team of Ciheng summarized the "pit" behind the shop transaction according to the actual case:
1、Who should intermediaries and buyers all over the world trust? As mentioned above, driven by the buyer's commission, people flocked to the industry to try to match up people around them for shop transactions. However, the quality of intermediaries was mixed, and even some non professional individuals joined the industry. For sellers, facing unfamiliar buyers or intermediaries with insufficient ability, they could not generate complete trust, especially some unprofessional intermediary individuals, In order to match the transaction, the seller's information may be publicized all over the world, which may lead to information leakage and attract the attention of competitors; After completing the preliminary matchmaking, we did not know the follow-up procedure or blindly promoted the process from the buyer's perspective. The above situations undoubtedly did not increase the seller's trust cost, so we did not dare to rush forward the shop transaction;
2、differentHow to choose between offers? After successfully contacting the real buyers, high-quality stores may attract the interest of multiple buyers. How should buyers choose in the face of multiple offers, in addition to comparative valuation and trading conditions? More importantly, what is the background of the buyer, and whether there is any subsequent capital payment capability?
3、Why is the due diligence progress delayed again and again? Compared with the initial exploration of the shop transaction process, the efficiency of the due diligence process has been greatly improved. However, compared with the expectation that many sellers want to complete the sale before the peak season in the second half of the year, not all buyers can match the due diligence team that responds quickly. In particular, the due diligence teams of most buyers are still overseas, and different buyers have different acquisition logic, Some pay more attention to the arrangement of the supply chain, some pay more attention to the product selection strategy, and some pay more attention to the product advertising strategy. Different buyers pay different attention to the due diligence. If the communication between the two parties is not smooth, the due diligence period will also be delayed.
4、How to understand the complex arrangement of phased payment? At present, there are almost no shop transactions that can achieve one-time payment, and even the proportion of the first payment of some buyers is only50%, but is it really better to pay more for the first installment? If the original seller is no longer responsible for the operation, is the payment arrangement that the subsequent payment is still linked to the net profit growth rate reasonable? The design of these professional terms may also trouble sellers and hinder the smooth transaction to a certain extent.
5、Is it really possible to complete the transfer of the store without risk? This is an important issue for the seller. The smooth transfer of the store and the successful completion of the transaction is the most perfect outcome. However, the Amazon official did not allow direct changes to the back office subject of the store, and the seller is worried that unauthorized changes to the back office subject may lead toKyc reviewed that the transaction could not be completed, which would further cause irreversible damage to the store itself. However, almost all buyers in the market are very secretive about this issue. Some experienced buyers will simply tell the first contact sellers that they have official communication channels, and historical cases have been changed. However, according to our understanding, the facts may be more complex, Some cases directly received inquiries from Amazon officials during the transaction, which affected the transaction.
Ciheng Team
How to select high-quality transaction intermediaries？Based on the above, we believe that in the current market situation where the buyer has obvious advantages, the existence of the seller's intermediary is quite necessary, and high-quality intermediary plays a vital role in improving the transaction price and efficiency. We believe that an excellent intermediary team has the following characteristics:
1、There are successful transaction cases, and successful store transactions have been completed in history.
2、Rich buyer resources, familiar with the financial strength and preferences of each buyer, and able to accurately connect.
3、There is a professional team, equipped with professional lawyers, accountants and other personnel with cross-border experience.
4、Have rich industry experience, understand the industry characteristics of cross-border e-commerce, and can quickly and accurately judge the quality of stores.
We areGrant Heng Consulting（wechat number:CICHENG-GZ）It is a professional consulting institution under Anci Capital that focuses on cross-border e-commerce capital services. Anci Capital and the team of Anci Heng have led the investment or M&A and listing projects of many well-known cross-border e-commerce related enterprises, such as Patoson, Tongtuo, Santai, E-hundred Network, Starlinke, and Feishushennuo. The team of Anci Heng is providing professional services for many small and medium-sized Amazon sellers to sell their stores.
At present, we are dealing with transactions of many stores and maintaining close cooperation with 60 or 70 purchasers on the market. As a professional service agency, we promise to provide the following services for high-quality Amazon sellers:
one、What we do is not just information matching. We always stand in the position of the seller and are determined to find the most suitable buyer for high-quality sellers;
two、Assist in collection and judgmentOffer to evaluate the buyer's strength;
three、Efficiently promote and control the due diligence process;
four、Assist in drafting transaction documents, and negotiate with the acquirer on your behalf, so as to maximize your interests and control transaction risks;
five、Assist in isolating the potential risks of store transfer from transaction terms and arrangements;
six、Assist you in dealing with other issues related to the sale of the store, and reply to your questions or questions at any time.
Select us as your agent to sell the store, and we will take you to avoid all kinds of transactions in the store"Pit", to help you complete Amazon store transactions efficiently, safely and smoothly.
You provide a high-quality shop, and we will escort your shop transaction throughout.
