Amazing FBA Amazon and ECommerce Podcast, for Amazon Private Label Sellers, Shopify, Magento or Woocommerce business owners‪,‬ Michael Veazey

Thinking about selling your e-commerce brand? You're not alone. The market for established online businesses is booming, and Flippa, the world's leading platform for buying and selling online businesses, can help you navigate the process. In this post, we'll explore key factors to consider when evaluating your brand's sellability and provide valuable insights from Benny Gould, Flippa's global head of advisory.







[00:02:32] Determining Business Valuation: Assets, Financials, IP.[00:04:40] Understanding Due Diligence in M&A.[00:05:59] Timing and Market for Selling.[00:06:25] Partnerships and Long-Term Acquisitions.[00:06:37] Typical Deal Structures: Cash, Deferred Payments.[00:07:06] Buyer Experience Influences Deal Structure.[00:15:40] Look at Revenue North of 250,000.[00:20:18] E-commerce Success Post-COVID Depends on Audience Targeting.[00:22:40] Impact on Sellers' Lives Drives Flippa's Mission.[00:23:48] Handbook Educates Small to Medium Business Owners.[00:25:19] Insights from Flippa Provide Valuable Perspective.







Is Now the Right Time to Sell? The 2024 E-commerce Landscape







The answer is a resounding yes! The e-commerce market in 2024 presents a seller-friendly environment. However, many brand owners remain unaware of their business' true value and exit potential. This is where Flippa's expertise comes in.







Understanding Your Business Value: Valuation Methods Explained







Determining your e-commerce brand's value is crucial. Flippa utilizes a three-pronged approach:









* Asset Valuation: This considers tangible assets like inventory and intellectual property (IP) associated with your brand.







* Financial Performance: A thorough analysis of your profit and loss statements reveals your business' profitability, a significant factor for buyers.







* Market Benchmarking: Flippa leverages its extensive 15-year data pool to compare your business against similar e-commerce brands, providing a realistic valuation range.









Beyond Price Tags: Due Diligence - A Critical Step







A successful e-commerce business sale hinges on robust due diligence. This involves two key aspects:









* Verification: Similar to a property inspection, buyers will meticulously examine your business. This includes customer verification, inventory checks, and supplier contract reviews.







* Deal Structure: Negotiating a win-win deal structure is essential. Key considerations include cash upfront payments, earnouts (performance-based payments), and potential lending arrangements.









Legal Considerations: Ensuring a Smooth Transaction







Selling your e-commerce brand involves legalities. While market conditions are favorable, focusing solely on valuation multiples isn't always the wisest approach. Flippa can connect you with legal professionals to protect your interests throughout the exit process.







Unveiling Typical Deal Structures in the E-commerce Market







Flippa caters to both experienced and less-experienced buyers. Here's a breakdown of typical deal structures:









* Experienced Buyers: These buyers often have readily available funds and can offer a higher percentage of cash upfront, especially for businesses exhibiting consistent growth. Businesses with a strong track record (over 4 years) tend to attract more upfront cash offers.







* Less Experienced Buyers: Securing loans might be more challenging for less-experienced buyers, potentially impacting the upfront cash component of the deal structure.

The ecommerce market is constantly evolving, and 2024 is no exception. While giants like Amazon might seem to dominate the landscape, there's still incredible opportunity for established brands to scale and thrive. In this post, we'll explore how to leverage the power of mergers and acquisitions (M&A) to fuel your ecommerce growth, even with limited.







[00:00:00] - Benny Gould Mentions Flippa Does Around 12,000 Deals Per Year For Online Businesses.[00:01:12] - Michael Asks Where Benny Is Coming From (Amsterdam).[00:01:57] - Discussion About Flippa Having A Global Reach And Being Distributed Across Different Locations.[00:02:09] - Michael Asks About Flippa's History And Reputation For Smaller Deals In The Past.[00:03:22] - Benny Mentions Flippa Currently Has Over 122 Businesses For Sale Valued Over $1 Million.[00:04:21] - Michael Asks About The Landscape Of Selling Amazon Businesses In 2024 And The Role Of Aggregators.[00:07:09] - Discussion About The Overview Of The E-commerce Business Market In 2024.[00:10:32] - Benny Says March 2024 Was A Record Month For Flippa Across The Company.[00:11:11] - Michael Asks About The Mix Of Different Digital Assets For Sale On Flippa Beyond E-commerce[00:13:35] - Discussion About Amazon Sellers Potentially Combining Different Business Models Like Content Sites.[00:15:18] - Benny Provides Information About Flippa's Free Guides And Resources For Selling Or Acquiring Businesses.[00:16:18] - Benny Offers A Special 30-day Free Trial Of Flippa Premium For Podcast Listeners.







Flippa: Your Gateway to High-Value Ecommerce Acquisitions







Many brand owners might not realize the potential of M&A for scaling their businesses. This is where Flippa, the world's leading platform for buying and selling online businesses, steps in. Founded in Melbourne, Australia, with hubs in Austin, Texas, and Amsterdam, Flippa boasts a 15-year track record of facilitating successful M&A transactions across over 160 countries.







Beyond Small Deals: Uncovering Big Opportunities on Flippa







Flippa isn't just about small deals. Contrary to popular belief, 99% of business owners are unaware of the platform's potential for high-value acquisitions. Flippa has facilitated over 122 deals exceeding $1 million valuations, alongside numerous significant 6- and 7-figure transactions. Their experienced team leverages their global reach to connect sellers with qualified buyers, even for cross-border transactions (a staggering 87% of deals on Flippa!). With over 12,000 deals completed last year, Flippa offers a robust marketplace for scaling your brand.







The Evolution of Digital Assets: From Domains to Thriving E-commerce Stores







The digital landscape is ever-changing. Just like the early days of domain flipping and affiliate marketing, the rise of Amazon and ecommerce created a new wave of valuable digital assets. Today, established e-commerce stores, along with their social media channels and intellectual property, represent lucrative opportunities for acquisition.







Meet Benny Gould: Leading Your Ecommerce M&A Journey







Benny Gould, Flippa's global head of advisory, leads a dedicated M&A team of 14 experts. This team operates through two distinct models: a pure brokerage model that identifies and secures deals, and an M&A advisory team that provides in-depth valuations for businesses considering an exit strategy. Flippa's experts can guide you through every step of the acquisition process, ensuring a smooth and successful transaction.







Navigating the Evolving Ecommerce Landscape: M&A Trends in 2024







The COVID-19 pandemic undoubtedly impacted the M&A market, driving up revenue and deal valuations. However,

Are you ready to break through plateaus and achieve explosive growth on Amazon? This guide unveils the 8D Framework, a data-driven strategy designed specifically for established e-commerce brands with Product-Market Fit (PMF). Learn how to optimize every aspect of your Amazon presence for maximum impact, leading to a potential 2X growth in just 12 weeks.







Time Stamps







[00:00:00] - Discussion about profit margins and pricing strategies for Amazon sellers.[00:07:55] - Explanation of the importance of product positioning and brand consistency across platforms.[00:15:18] - Introduction of the fourth dimension of the 8D framework: product positioning and brand building.[00:21:40] - Discussion of the fifth dimension: customer experience optimization for different devices and languages.[00:28:11] - Explanation of the sixth dimension: tech stack and utilizing AI tools like ChatGPT.[00:30:40] - Details on the seventh dimension: logistics and supply chain management, including Amazon's Seller Fulfilled Prime program.[00:33:47] - Description of the eighth dimension: team communication and collaboration.[00:37:15] - Information about attending the free workshop and the 12-week Rapid 2X Accelerator program.[00:40:00] - Summary of the 8D framework and an analogy to the movie "The Karate Kid."[00:40:23] - Details about the 10K Collective Uber Mastermind program offered by the host, Michael Veazey.







The 8D Framework: A Deep Dive







The 8D Framework goes beyond simply throwing money at advertising. It's a meticulous, step-by-step approach that optimizes your existing assets for peak performance. Let's break down each dimension:







Dimension 1: Performance Optimization







This stage involves a comprehensive audit of your Amazon presence, including:







Product Detail Pages (PDPs): Optimize titles, descriptions, images, and videos for maximum clarity and conversion. Leverage A+ Content to showcase your brand story and product benefits.Brand Store: Establish a dedicated brand presence on Amazon to build trust and brand recognition.Brand Registry: Enroll in Amazon Brand Registry to protect your brand from counterfeiters and unlock additional features.Amazon Ads: For brands exceeding $150,000-$250,000 in annual sales per ASIN, utilize Amazon Ads strategically to target relevant customers and drive conversions. Leverage Amazon Attribution to track campaign effectiveness.







Dimension 2: Pricing & Promotions







Strategic use of promotions can boost sales, but profitability is paramount. Consider factors like:







Ideal Gross Margin: Aim for a 65% gross margin after accounting for landed costs.Amazon Fees: Factor in Amazon's selling price fees (30-35%) and FBA fulfillment costs when determining profitability.Advertising Costs: Account for Advertising Cost of Sale (ACOS) alongside Amazon fees to ensure a healthy net margin (ideally 10-15%).Promotional Calendar: Utilize targeted promotions for holidays like Valentine's Day and Mother's Day, but ensure profitability.







Dimension 3: Marketing Beyond Amazon Ads







Move beyond viewing Amazon PPC as your sole marketing strategy. Focus on building a strong brand story that resonates with your target audience:







Craft a Compelling Brand Narrative: Every product has a story – use it to connect with customers. Highlight use cases, and showcase the story behind your brand and founders.Influencer Marketing: Partner with relevant influencers on platforms like TikTok, YouTube, and Instagram to amplify your brand message.A+ Content & Brand Store as Storytelling Platforms: Utilize A+ Content and your brand store to showcase your brand story and product benefits.

Have you hit a plateau with your Amazon sales? Dreaming of explosive growth but unsure where to start? This guide unlocks the secrets used by industry leaders to achieve 2X growth in just 12 weeks. Learn the 8D Framework, a data-driven approach specifically designed for established e-commerce brands with Product-Market Fit (PMF) to scale their Amazon presence efficiently.







Time Stamps







[00:04:15] Having $100k-$250k in yearly sales per product demonstrates product-market fit for Amazon sellers.[00:06:05] He looks at sales per ASIN/product line, not the seller's total sales across all products.[00:09:01] The 12-week Rapid 2X Accelerator program aims to have clients trending at 2x their daily sales rate.[00:10:19] The program implements optimizations across 84 days in areas like logistics, productivity, and sleep habits to compound growth.[00:14:46] The first dimension is Performance Optimization - optimizing product listings, A+ content, pricing, promotions, and PPC campaigns.[00:18:04] This includes optimizing titles, bullet points, images and videos to increase conversions and organic ranking.[00:20:25] For FBA, having enough inventory for 1-day Prime delivery can significantly increase sales conversions.[00:27:11] One client saw 50% sales growth in the first week from just the listing optimization dimension.







About the Author : Sabir Semerkant







Sabir Semerkant is a titan in the e-commerce world. Over the past 25 years, he's helped launch two entirely new Amazon categories and worked with clients featured on Shark Tank. His company, GrowthBySabir, has generated over $1 billion in e-commerce sales across diverse platforms like DTC, Shopify, and, of course, Amazon.







Partnering with Gary Vaynerchuck







Sabir's expertise caught the eye of Gary Vaynerchuk, leading to a collaboration that brought e-commerce to the forefront of Vayner Media. Together, they established a global e-commerce agency with a proven track record of success.







Defining Product-Market Fit (PMF)







Before diving into the 8D Framework, let's solidify the concept of PMF. For Amazon specifically, Sabir defines a brand as PMF-ready if it meets the following criteria:









* Yearly Sales per ASIN (including variations): $100,000 - $250,000 USD







* Experience with common challenges: Counterfeiting, cloning, brand registry







* Marketing Efforts: Basic understanding of advertising (Amazon Ads or Google Ads)







* Supply Chain Management: Inventory control and responsiveness to customer feedback







* Product Iteration: Willingness to adapt based on reviews and competitor analysis









For Shopify stores, the overall PMF threshold translates to roughly $500,000 in annual sales.







Confirming Product-Market Fit (PMF)







Here are some additional indicators of PMF:









* Inventory Management: Consistent stock availability







* Product Photography: Ability to capture high-quality product images (even with an iPhone)









What the 8D Framework Isn't







This framework isn't about throwing money at advertising (Amazon Ads or Google Ads). It's a data-driven approach focused on optimizing existing assets for maximum impact.

In the bustling world of e-commerce, one question looms large: why do people buy? We often find ourselves fixating on the features of our products, the materials they're made from, or the benefits they offer. But in reality, successful selling goes beyond these surface-level attributes. It's about tapping into the deeper desires and emotions of our customers. Welcome back to part 2 of our exploration into authentic selling, where we delve into the psychology behind consumer behavior and how authenticity can revolutionize your sales strategy.















Understanding the Customer Experience: Beyond Product Features







Let's kick things off with a vivid example shared by an online marketing specialist during a recent interview. Picture this: you've developed the ultimate fishing lure. It's crafted with precision, boasting a carbon fiber shell and surgical stainless steel hooks. But here's the twist – nobody cares about the technical details. What truly matters is the experience you're selling.







Think about it. When someone buys a fishing lure, they're not just looking to catch fish. They're seeking adventure, camaraderie, and perhaps a taste of victory. By understanding the deeper motivations of your target audience, you can transform a mundane product into an irresistible proposition. In this case, it's not about the lure itself, but the experience of being the ultimate angler – outsmarting your friends, reeling in the biggest catch, and basking in the glory of success.















Cultural Nuances in Sales: Tailoring Your Message







But authentic selling isn't just about crafting compelling narratives. It's also about understanding the cultural nuances and emotional triggers that drive consumer behavior. Take the example of selling to different markets, such as the UK versus the US. While Brits may downplay their achievements, Americans have a strong affinity for winning and success. By tailoring your message to resonate with the values of your target audience, you can create a deeper connection and drive greater engagement.















Embracing Risk and Fearlessness: The Path to Success







Authentic selling isn't without its challenges, though. As our interviewee aptly points out, it often requires stepping outside your comfort zone and taking calculated risks. Whether it's expanding your business, investing in new technologies, or challenging prevailing norms, authentic selling demands courage and conviction. It's about pushing past the boundaries of what's comfortable and embracing the unknown.















Transcending Fear: Unlocking Your True Potential







But perhaps the most profound insight shared during the interview is the idea of transcending the fear of failure and death. Drawing inspiration from Martin Luther King Jr.'s iconic "Mountaintop Speech," our interviewee reflects on the transformative power of fearlessness. By letting go of our insecurities and embracing our true potential, we can unlock new possibilities and achieve extraordinary success.















Conclusion: The Power of Authentic Selling







In conclusion, authentic selling isn't just a marketing tactic – it's a philosophy that drives meaningful change. By understanding the deeper motivations of our customers, tapping into cultural nuances, and embracing fearlessness, we can elevate our sales strategy to new heights. So the next time you're tempted to focus solely on product features, remember that authenticity is the key to unlocking the hearts and minds of your audience.

Authentic Selling vs. Jedi Mind Tricks -  Coach Dan Gordon



Now, I've got to tell you, I said to Coach Dan Gordon, this is who we've got on the show, how I should introduce him. He said, "I want you to say the greatest fraud I've ever met,". Well, Authentic Selling is the focus of today's show, but that's clearly not the truth!



Dan Gordon is an executive coach and speaker, and his mission is to raise the consciousness of bad-ass entrepreneurs all over the world. So there you go, welcome to the show Coach Dan. Good to have you here.



Gratitude and Insight



Thank you so much. It's a real delight. And I just so appreciate what you do, Michael, helping people really step into the things that they struggle with and look at the parts of their life and their business that they need to work on. And just by the nature of the conversations that you have, you force those thoughts. It's beautiful.



Authenticity in Conversation



Not a sort of soft, cuddly guy, really. I guess British people have a habit of being, you know, a little bit on the cooler side, quietly blunt, I guess in a way. So yeah, I try to keep it real and that's definitely the topic of today's conversation.



Authentic Selling vs. Jedi Mind Tricks



Our topic, authentic selling versus Jedi mind tricks. Really like this one because it's a huge corrective to what's going on out there. So tell me what's this all about for you.



The Overused Concept of Authenticity



So last year, the Miriam Webster word of the year was authentic or authenticity, which means it is a widely overused word that now has no meaning. Right. So everybody wants to be authentic. Everybody, you know, and now, you know, people are training people how to be authentic, which is insane, right?



Challenges with Traditional Sales Methods



When you think about selling authentically, that betrays all of the Sandler type methods, which is, you know, the customer's pain points describing your products, features, and benefits, the open, the middle, the close, all of those things that people use as leverage to sell their crap and what. What makes it so inauthentic is you are not actually engaged with your client.



Embracing Authenticity in Sales



And so, I love that because it's forcing people to reevaluate how they show up in a sales meeting. And the reevaluation is, I'm going to put you first, Michael, if I want you to buy my coaching, then you have to come first. Not me, not this cool thing, not your pain points, but you, what are you struggling with right now? How can I make you a better person? Whether or not you buy my services and that's what authentic selling is.



Adapting Authenticity in E-commerce



I mean, they often do, but they probably don't think of it as a sales conversation. If you're talking to a supplier, if you're talking to a freight manager, if you're hiring a photographer, but you know, the essence of what they do is done by a computer screen.



Implementing Authenticity Online



So that's a great question. I get it. I get that kind of question a lot. I don't do one on one sales. Very few people do one on one sales. What's the point of what I'm talking about? The point is in messaging. How do I reach out to you as a person?



Testing Messaging through Human Interaction



And so you really have to test your messaging on human beings. And I would say that my best suggestion is to go to a networking meeting, go to a chamber of commerce, go to a place where people are and talk to them about what you're selling and see how they respond to it, right?



Appealing to Human Emotions



You know, the kids today, they do not go for that crap.