With the upcoming launch of our dedicated Amazon FBA section within the Flippa marketplace, we address some of the top questions surrounding Amazon FBA businesses!
What is an Amazon FBA Business?
FBA stands for “Fulfillment by Amazon”, meaning that a seller sends his inventory over to Amazon to be stored at their warehouse. From there, when an order is placed for your product through Amazon, they will handle all packing, delivery, customer service, and returns of the seller’s inventory.
For more on how it works, you can view Amazon’s own guide to Fulfillment by Amazon services by clicking here.
Amazon FBA’s are different from the dropship eCommerce model of business, as you need to supply the product to Amazon warehouses before an order is placed.
Benefits of Amazon FBA Businesses:
- Fulfillment Centers: All orders are packaged and shipped quickly to customers. Watch your workload decrease, allowing you to focus on bigger parts of the business.
- Prime Eligibility: Products are eligible to be marked with Amazon Prime status.
- Having Prime status on products is a quick way to boost sales (Source: AppEagle)
- Amazon Customer Service and Returns: Amazon will personally handle all customer service requests and returns on behalf of each product sold.
Am I Allowed to Buy or Sell an FBA Account?
It’s a fairly common practice to transfer ownership of Amazon FBA businesses.
Amazon understands that ownership of a business could change for any reason, and will facilitate transfers upon request.
If you are a seller and would like to sell your online business using Amazon FBA, best practice would be to seek out pre-approval from Amazon Seller Central (Link: sellercentral.amazon.com) to ensure a smooth transaction once the listing is sold.
It’s the responsibility of the seller to ensure that ownership can be transferred before listing any business or asset on Flippa.
Once you have confirmation from Amazon that your account can be transferred, you’re ready to list your business for sale!
How do I Transfer Ownership of my FBA Account?
There are 3 ways to transfer ownership of a Amazon FBA account:
1. FBA owner calls seller central and gets the store transferred over to the new owner. This method will be the most common practice on Flippa. Once Seller Central has confirmed that you can transfer the asset, you simply need to change the login details to match the new owner. Once this is done, the new owner can then update all payment information, etc.
Note: As mentioned, we highly recommend contacting Amazon Seller Central before you list your FBA account on Flippa.
2. FBA owner adds the buyer in the back end and the buyer subsequently updates the details of ownership on Amazon themselves.
3. Brand is transferred, following the brand transfer guidelines. There may be instances where a seller may want to retain the account and they can. In that instance, the products can be transferred to a new account. The seller reviews don’t move across but the product reviews do.
Most FBA transactions on Flippa will fall under the first option. No matter which way you plan to transfer your assets, it is essential that you clearly state which transfer process you plan on using in your listing description to avoid confusion.
Can I Sell an Amazon Merchant Account?
For those unfamiliar with Amazon Merchant accounts, all shipping is done by the seller themselves, and not an Amazon fulfillment center. This is more in-line with the standard eCommerce model.
If you plan on selling an Amazon Merchant account, it is up to you whether you want to list it in the FBA section of Flippa, or as a general online business in the websites section.
Have any other questions regarding FBA accounts? Leave a comment below and we’ll get back to you!