This episode provides a crucial look at what makes an Amazon FBA business an attractive acquisition target for experienced buyers like 101 Commerce. Richard Jalichandra outlines the specific criteria that drive valuation, offering FBA sellers actionable insights to optimize their operations and positioning for a successful sale. Understanding these factors is essential for any FBA entrepreneur considering an exit strategy.
Key takeaways
Focus on building a brand with potential, not just selling commoditized products; buyers seek trademarks and Brand Registry 2.0 to ensure defensibility.
Aim for gross margins around 70% and a strong review structure (quantity and velocity) as these are key financial and social proof indicators for acquirers.
Ensure your FBA business has been operational for at least 2 years, preferably 3, to demonstrate stability and a track record of performance.
Be honest and transparent with potential buyers about any business challenges; this can preserve the relationship and facilitate a smoother transaction.
To increase your business multiple, clearly demonstrate brand potential, strong gross margins, a robust review system, and consistent operational longevity.
Over the past few months I've been talking a lot about the mounting challenges of selling on Amazon. One of these conversations led to an introduction with Richard Jalichandra, today's podcast guest. Richard is the Founder and CEO of 101 Commerce, an ecommerce company that aims to become the next generation retailer by acquiring businesses that own "microbrands" primarily sold via FBA. In this episode Richard talks about their goal of acquiring 101 brands (they are currently at 14 after 6 months of operations), how they manage to still be comfortable with the mounting risks of selling on Amazon, and what they're looking for in an FBA business that makes them want to buy. He also gives tips on how to better prepare yourself if you plan to sell, how to increase your multiple, and why honesty and transparency can preserve your relationship with a buyer even if your business has problems. Want to sell your business? 101 Commerce is 87 brands away from their goal and they are on the look out for brands to buy. Below are the characteristics they're looking for in a brand: Is 100% or predominantly on Amazon Has brand potential and doesn't sell highly commoditized products Has a trademark and is on Brand Registry 2.0 Has good gross margins (around 70%) Has a good review structure (quantity and velocity) Has been around for at least 2 years, preferably 3 If your brand checks all these boxes, click this link and fill up the form to let Richard and his team know. Thanks for listening to this episode! Let us know what you think by leaving us a review on iTunes. Visit and like our
What does this episode say about amazon & marketplaces?
Focus on building a brand with potential, not just selling commoditized products; buyers seek trademarks and Brand Registry 2.0 to ensure defensibility.
What does this episode say about finance & fundraising?
Aim for gross margins around 70% and a strong review structure (quantity and velocity) as these are key financial and social proof indicators for acquirers.
What does this episode say about founder & leadership?
Ensure your FBA business has been operational for at least 2 years, preferably 3, to demonstrate stability and a track record of performance.
What does this episode say about amazon & marketplaces?
Be honest and transparent with potential buyers about any business challenges; this can preserve the relationship and facilitate a smoother transaction.
What does this episode say about amazon & marketplaces?
To increase your business multiple, clearly demonstrate brand potential, strong gross margins, a robust review system, and consistent operational longevity.
