Have you ever dreamed about or considered building an effective pan-European FBA business? If you are like many eCommerce company owners, you have been focused on remaining fiercely competitive in your country – or have tried expanding to the US market, forgoing most or all of the EU.
I spoke to Sam Horbye of Olsam Group about this and several other aspects of selling, growth, and expansion in the FBA space.
A Little Bit About Sam
My interviewee, Sam Horbye, cofounded Olsam with his brother, Ollie. Sam began his journey in the Amazon eCommerce space by working for Amazon in Marketplace. He also built his own FBA brand and sold it in the summer of 2019. So, not only has he supported brands from their initial steps into the Amazon Marketplace to getting to their first million, he has the personal experience of starting a brand from scratch and being acquired.
This experience served him when he and his brother began Olsam Group. This FBA acquirer focuses on businesses that have room to grow. They specialize in going into share purchase agreements with companies ready to expand into new markets, whether in Europe or the US.
Growing a Brand from Local to International
In the interview, Sam talks about how FBA companies often get European expansion wrong.
The EU is an aggregation of different countries, all of whom speak various languages, have varied cultures, and may have completely contrary attitudes toward your products. Olsam Group employs people from all around the EU who understand how to do more than translate the copy for your product.
The group considers how branding, keywords, search terms, categorization, and more will take a US or UK product from obviously from another country to a more localized experience for any buyer.
Localization includes modifying language, packaging, listing content, keywords, category, and PPC. If you have created a successful FBA brand in one country, translating the entire brand to another country includes rebranding to some degree so that the copy and product hit home with your new customer base.
What it Takes to Work with a Company Like Olsam
In our interview, Sam explained that Olsam Group has created a system to help the acquisitions company and the seller come together on a deal rapidly – without much back and forth.
They request basic information before providing a Letter of Intent (the pre-LOI stage). This involves asking for Amazon fundamentals and financial fundamentals, including profits and costs.
They, like many acquisitions companies, are looking for FBAs that can grow. In the case of Olsam Group, they perform thorough due diligence that examines supply chain, operations, and any other areas.
At the end of the day, what Olsam Group and similar acquisitions companies want to see is a path for growth. That means, if you have a new product idea (like so many sellers do), it needs to be a mapped path – not just something in your head. Sharing a product idea that is all but launched makes your brand more attractive than just having a few ideas in your head without the sourcing mapped out.
Listen to the full interview with Sam here. We discussed everything from the difference between an asset purchase agreement and a share purchase to an overview of SDE.
If this article or the episode has you curious about the saleability of your own brand, take action! Get your Freedom Score and discover what you need to do to get your brand ready for acquisition.