It sounds like Flippa is trying to automate the sale of FBA brands to large aggregators. This may be a good solution for DIYers who are willing to do their own due diligence and understand how best to prepare their business for purchase. However, it could also cause brand owners to leave money on the table when they negotiate a deal through this system. We will just have to see how it all plays out!
AUSTIN, Texas, Feb. 1, 2022 /PRNewswire/ — Flippa, the #1 global online marketplace to buy and sell online businesses and digital assets, today announced the launch of Flippa Direct Connect, a new service that connects high-value Fulfillment By Amazon (FBA) business owners directly to over $5B in acquisition capital via a curated network of FBA aggregators. Flippa helps eligible FBA business owners (valued between $500k and $25 million) who are interested to sell their business to get matched and negotiate directly with interested, acquisition-ready firms.
Acquisition of FBA businesses has become a billion-dollar industry with over $10B raised for acquisitions in the last two years. While a few like Thrasio and Perch have received the majority of that capital, there are over 80 aggregators seeking new businesses to buy and scale across all market categories including Home & Kitchen, Sport, Arts & Crafts, Garden and DIY, Toys, Furniture and Tools. In fact, according to new survey data from The Fortia Group, there could be 1,000 Amazon FBA brands sold this year. The survey revealed that a quarter of aggregators said they expected to close between 40 and 49 deals in 2022. Twenty percent expected to close between 20 and 29 deals, and just 10% expected to do under 5 deals in 2022.
Whether you’re a FBA business owner who’s thinking about selling your business for the right price, or an aggregator who wants direct access to deal flow, Flippa’s Direct Connect can help buyers and sellers get introduced and do deals faster, without the friction and complexities of a typical lead generation and discovery process.
Flippa Direct Connect offers:
- Faster deal flow: Flippa Direct Connect provides FBA aggregators with the right opportunities faster and without the hassle. Both sides of the deal avoid brokers and third parties, and get to a serious acquisition conversation faster.
- Low fees: Flippa charges a 2.5% commission fee to the seller. This is a best in market rate for sellers leaving more in their back pocket.
- Sellers get bigger exposure: When FBA sellers use Flippa Direct Connect, they get maximum exposure to the largest range of aggregators and institutional investors, giving them the best opportunity to optimize the sale of their business.
- Buyers get accurate valuations: With over ten years of transaction data readily available at your fingertips, Flippa’s proprietary Intelligent Valuations Engine is powered by the largest data bank of sales data and provides business owners with the most accurate assessment of their business in the industry in just 3 minutes or less. More than 53,000 valuations have been processed by the Flippa Intelligent Valuations Engine since July 2020.
“We’ve partnered with the world’s leading aggregators such as Thrasio, Seller X, Berlin Brands, and UnaBrands and have agreed to bring them deal flow. Both parties benefit with sellers getting direct access to the key deal makers at each of these firms,” said Blake Hutchison, CEO of Flippa. “The best deals happen when you have options and access to the right buyers so that’s what we’ve built. Selling a business is hard, so we’re making it easy. We are seeing strong demand for this type of matching service, where investors can get matched with successful FBA business owners who are ready to exit.”
As the market for FBA business acquisitions becomes bigger and more complex, more sophisticated tools are needed to help buyers and sellers find each other and make deals happen.