When planning to sell a property, many improve and even renovate it, invest in a garden, get more land approved for construction–all to maximize the profit at the moment of the sale. In this sense, digital assets are similar to real estate ones.
I’ve accompanied a few companies on the exit journey for their Amazon brands.
I’ve also accompanied quite a few investment firms in their due diligence phase and learned the perspective of investors and buyers.
I’m sharing this article here in order to provide you with practical tips that can simply increase your pre-sale brand value. If you’re still not thinking about selling, those tips can just increase your profitability.
1. Profit increase through lost inventory–based on statistics, inventory loss in Amazon
warehouses is around 2-4%. Sometimes it doesn’t just “get lost” but rather, for example, doesn’t go through the process of being returned by the customer. There’s some very good software available. Allow me to recommend two:
1.1 Getida (embedded link) with a $400 gift coupon. A solid company that automatically and constantly monitors what reimbursements you’re owed, opens cases and handles them. They charge 25% of the reimbursements you won thanks to them
) is a newcomer in the field yet very dynamic. Their main advantage comes from their work with VENDOR accounts (also visible to the client as SOLD BY AMAZON).
Finding lost inventory or getting credited by Amazon would effectively increase your profitability, directly increasing the value of your brand on Amazon.
2 .Bulk purchase of inventory–currently
Amazon does limit inventories (which should be resolved within half a year) in their warehouses, but purchasing inventory in bulk from the supplier is likely to drop both production and shipping costs.
3.Unsubscribing from unnecessary software
as Amazon sellers, we’re subscribed to a large number of many software for market research, opinions, customer service, campaign management, etc. Assuming a total monthly cost of $500 for all software, unsubscribing from those (again, as possible) would enable us to save $6,000 a year. With an earnings multiplier of 4, this increases our valuation by $24,000.
4.Digital asset increase
do you only sell in one country? The time has come to expand to one of dozens of Amazon countries. Do you only sell on Amazon? This is a great time to set up a store on Shopify or elsewhere. Additional marketing and sale channels would significantly increase the value of your brand. As far as the buyer is concerned, you’re cutting their time to market.
5 .Ensure you’re still subscribed to all possible programs:
There are some great programsout there , such as the Amazon Brand Registry
Ensure subscription to the relevant program–each program could let you to ask for a higher multiple.