Amazon Businesses For Sale: What’s Driving This Trend?
If you’re involved in the world of online business, you may have noticed a growing trend in recent years. More and more websites are up for sale that utilize Amazon as their revenue-generating model. Many of these websites do so through the Amazon Affiliate program, but many are also Amazon Vendors or use the Amazon FBA program to sell their wares.
In this article, we’re examining what’s driving this growing trend and why it’s becoming a much more popular business opportunity. We’ll give you the reasons that this trend is growing, and why you can expect it to keep growing.
Potential Reasons for Trend
Amazon is Growing
That Amazon is growing is perhaps the most obvious factor in the increase of Amazon businesses for sale. Amazon was one of the fastest-growing businesses of the past decade, a true juggernaut of a business currently worth over $1.5 trillion. It has seen rapid growth and is now a household fixture.
As Amazon grows, the logical conclusion is that businesses that rely on the platform will grow, too. And they have, and so have their success. Many Amazon sellers or affiliates who joined the platform in the last decade have developed successful businesses that became worthy of selling for a big payday.
People are Becoming Aware of this Marketplace
As e-commerce continues its impressive growth, there is much less of a niche stigma associated with running an online business. These businesses are no longer considered fringe opportunities as more and more people discover their lucrative potential.
The same goes for Amazon businesses. As these enter the mainstream and more people become familiar with the Amazon platform, more people are willing to consider running one of these businesses themselves, which opens up the market for buying and selling Amazon businesses. Once an opportunity exits the niche environment and enters the mainstream, that’s when you’ll see its growth skyrocket.
Many More Amazon Businesses Exist (E-Commerce is Much More Mainstream)
Amazon has over a million sellers join their marketplace each year. The rise of the Amazon Affiliate program also continues its steady growth. The bottom line is that many more Amazon seller accounts exist than did several years ago. As these businesses mature, many are put up for sale, which may explain much of this trend.
As the platform grows, so too will the businesses that depend on it. Understanding this trend is crucial to understanding the rise in Amazon businesses for sale.
Transferring Seller Accounts Was a Recent Phenomenon
Another potential explanation for this trend is that sellers have only recently discovered that they can transfer their Amazon seller account. Transferring ownership has long been a grey area of doing business on Amazon, with Amazon’s traditional stance being that seller accounts are “generally not transferable”.
However, the word generally did open up some leeway, and many sellers found that there were ways to transfer seller accounts. This opened up the opportunity to sell their Amazon business by transferring their seller account to the new owner.
More Businesses are Being Developed to be Sold
Another trend that can help explain the influx of Amazon business sales is that certain e-commerce businesses are being developed explicitly to be sold. These e-commerce opportunities are collectively known as “turnkey websites”. Similar to a turnkey home, the website is developed so that the new owner can hit the ground running right away. The websites are set up with a revenue model, and the buyer can begin to operate the website for profit immediately.
Turnkey websites often use the Amazon Affiliate program, but there are other categories as well. These sites are often found for sale in reputable online marketplaces that help connect buyers and sellers and might even motivate sellers to sell their site in the first place.
The Rise of Affiliate Marketing
Another factor that has spurred the growth of Amazon businesses is the growth of affiliate marketing. Amazon launched its affiliate marketing program in 1996, and it has seen steady growth since then. The affiliate marketing space is expected to become an $8.2 billion industry by 2022, more than triple what it was in 2012.
Affiliate marketing businesses are often simply a blog that sells Amazon products, making them very easy to sell. It’s often as simple as transferring ownership of the site. This ease of sale has resulted in the transfer of many Amazon businesses in recent years.
Note – Be Aware of Scams
Before we wrap up this list, we should point out something that you should be aware of if you’re in the market for an Amazon business. The rise in the number of businesses for sale has also led to a rise of dishonest businesses for sale. In other words, you should do your due diligence before purchasing one of these businesses. Ensure that you verify the legitimacy and ensure that they are up-front about their traffic and revenue figures. Also, be sure to buy from a reputable online marketplace.
The Bottom Line – It’s Likely a Mixture of All These Factors
As you can see, Amazon is a complex business, with many different services offered to customers, vendors, sellers, affiliate partners, and more. As a result, you cannot explain the growth of Amazon in simple terms. The increasing number of Amazon businesses for sale is a combination of all these factors, and each plays its role.
From the rise of the platform itself to affiliate marketing to the increasing popularity of running an Amazon store, it all contributes to one simple fact – Amazon businesses present a big opportunity. If you want to get involved in the Amazon space, there’s no time like the present. The growth of Amazon shows no signs of stopping soon.