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Practical considerations associated with selling your FBA business

Am I allowed to sell my Amazon business?
This is an interesting topic, which is important that we discuss in this guide. Amazon states on their website that

"Seller accounts are not [generally] transferable. Seller accounts provide access to the tools sellers use to list their products, manage their orders and utilize resources that Amazon makes available to sellers. Seller accounts also include account activity history and customer feedback. Every seller on Amazon.com must have a seller account and an agreement with Amazon that establishes the terms under which the seller lists and sells its products. If the ownership of a business changes for any reason, the new owner should establish a new seller account. If the ownership of your business isn't changing but the individuals responsible for management of your seller account have changed, you can add additional users to your account" Link

Amazon restricts the ability to transfer control of seller accounts for a number of reasons. For starters, it prevents sellers that have previously been banned from Amazon from operating new accounts. Another important reason that Amazon restricts account transfers is to create a fairer basis for competition. When a seller has a great reputation, it is because they have earned that reputation - there are no guarantees for consumers that the new seller will have the same reputation.

However, the issue of transferability is not quite 'black and white'. For example, there are large publicly listed companies selling products on Amazon that change ownership many times every day, but they don't need to establish a new seller account every time someone buys or sells their shares. In the past few years, thousands of FBA businesses have been bought and sold, and Amazon has allowed this to happen. If you are planning to sell your FBA business, and want to be sure that there will be no hiccups down the line, we recommend that you contact Amazon to seek written approval, just like the team at Quiet Light Brokerage did (you can see an example of the email conversation in the first section of this article ).

Non-compete clause

The agreement which binds the sale of the business is a negotiable contract. Although buyers will want to ensure that you don't compete directly with them following the sale of your business, they usually won't mind if you continue selling other products on Amazon that aren't competing with their business interests. However, if this is a consideration for you, it is important to include this in the sale and purchase agreement to prevent future disputes.

What is involved in transferring ownership of the business?

Any assets of the business will be transferred to the new owner as per the terms of the contract. This includes the Amazon Seller Central account, any stock, domain names, email addresses, trademarks and copyrights and social media pages. Buyers will take on the assets of the business, but will not assume existing liabilities.

Suppliers need to be notified of the change of ownership, and introductions made. For larger businesses, this might involve a physical visit and shaking of hands. For smaller businesses, introductions can take place via skype, email or other digital means of communication.

Conclusion

Congratulations! You have made it to the end of our "How To Sell Your Amazon Business" guide.

We hope that you have learned lots about where, how, why and when to sell your Amazon business. A key theme throughout this guide is that automating processes is extremely important. In fact, with all of the resources that we have at our disposal in our modern world, outsourcing and automation is potentially one of the greatest game changers for e-commerce. By using Fulfilment by Amazon, you can remove the requirement to physically hold stock and manage operations. With A2X Accounting, you can automate the financial side of your business and make operations a breeze.