Are there risks in selling on Amazon? What should I pay attention to?

Now, not only physical stores can be transferred and charged transfer fees, but also online stores. If you don't want to continue to operate your own store, you can also resell it and recover some of your losses. So is there any risk in selling Amazon stores?

Are there risks in selling on Amazon?

1. Amazon store transactions have always been in a gray area. In such a mixed market, there are many sellers who unfortunately encounter professional black-hearted service providers who cheat people. It can be said that there are certain risks.

2. Generally speaking, when purchasing an Amazon store, the factors you need to consider mainly include the product source of the account, business duration and sales history, the number and quality of product reviews, SOP, cost, inventory and reasons for transfer.

3. First, let's talk about product sources. There are three main types of businesses on the Amazon platform: private label, direct purchases from suppliers or wholesalers, retail arbitrage, and online arbitrage. Private label businesses are usually the most valuable, while arbitrage businesses are less valuable because they require a lot of continuous effort and lack a real, unique competitive advantage. Before purchasing a store, you should first understand the type of account and whether it meets your business type so that you can choose the account type that suits you.

4. Secondly, when choosing an Amazon account, you need to consider the store's business duration and sales history. Although some new stores may not have high sales performance at the beginning, they have a rapid sales trend. Often such stores will continue to grow in the next few years. Such stores are stores with potential value and are worth choosing. When choosing a store, you should also pay attention to whether the growing performance belongs to extremely seasonal products.

5. Then, the quantity and quality of the store’s product reviews are also something you need to pay attention to when purchasing a store. Checking the product reviews can give you a better understanding of the store’s customer service, which is also of great help for subsequent operations.

6. Again, good companies usually have good SOPs (standard operating procedures), which are internal procedures designed to execute complex daily affairs within limited time and resources. Stores with high-quality internal procedures are easier to take over, so when purchasing a store, try to choose an account with a good SOP.

7. Finally, you need to consider the costs of the store, the inventory, and the reason for the transfer. You need to know every expense associated with the business, what is the resale value of the physical inventory? In addition, it is reasonable to ask about the reason for the transfer, because there are many reasons for the transfer of stores. Usually, if the seller transfers the account because they find other opportunities to make money, such stores are relatively strong in terms of security and stability. Of course, no matter what the reason for the transfer is, you need to figure it out before purchasing.

There are certain risks in selling a store online. Therefore, you can only try to reduce the risk as much as possible. Before selling the store, arrange all the contracts clearly, which can save you a lot of trouble in the future!

Recommended reading:

How much can you make in a month selling on Amazon? How can a novice get started?

Can I get my Amazon store back after I transfer it? How to operate a store?

How to fill out the Amazon registration review form? What information is required?