Is it legal to buy and sell Amazon stores? Why would you buy an existing store?

Now there are more and more merchants opening stores on Amazon. After opening Amazon, we need to do a good job of promotion and operation. Many Amazon merchants can't continue to do business, so they want to transfer their stores. So is it legal to buy and sell Amazon stores?

Is it legal to sell on Amazon?

Amazon store transactions have always been in a gray area. In such a mixed market, there are many sellers who unfortunately encounter black-hearted service providers who specialize in deceiving people.

Why buy an existing store?

Generally, the ultimate goal of buying an Amazon store is to get a huge return on investment. For many entrepreneurs, acquiring an existing Amazon business is more feasible than starting from scratch for the following reasons:

1. You have more money than time

Amazon stores are not cheap, and their costs are 18 to 36 times the monthly profit. For example, a store that makes $10,000 a month in profit may sell for between $180,000 and $360,000. This usually does not include the cost of inventory. You can open a professional Amazon selling account for $40 a month, but the time, money, and effort required to open a profitable store is enormous. Capital is often a big reason why Amazon sellers do not expand or expand slowly.

A successful business that is limited by capital can quickly reap huge gains if acquired by someone with capital. Wealthy and savvy investors know that turning a less successful Amazon business into a successful one is all about new capital flowing in. They can use their capital to leverage economies of scale, negotiate better prices with suppliers, increase advertising spending, and invest in things that competitors may not be able to do.

2. Want to reduce the risk of failure

While you can’t avoid risk, you can choose the risks you take. Choosing an already successful Amazon store means you can focus on optimization and expansion, rather than spending time choosing different types of products.

The buying and selling of Amazon stores has always been a gray area. Merchants can sell their own stores, but the reason why it is a gray area is that many unscrupulous merchants take advantage of this opportunity to commit fraud, and the people involved in the transactions are also a mixed bag, which has led to chaos in this industry.

Regarding the question raised at the beginning, we have introduced it in the above content. Buying and selling Amazon stores is legal. If you don’t want to continue to run an Amazon store, instead of closing it, you might as well choose to sell your store.

Recommended reading:

How do Amazon products pay taxes? What are the taxes based on?

Does Amazon cross-border e-commerce need to pay taxes? Introduction to tax policies

Who bears the tax on Amazon in the US? How to pay the tax?