Amazon Exit Strategy

Key Takeaways

• The market for Amazon brands is currently a seller’s market, driven by well-funded aggregators acquiring brands at scale.
• Aggregators primarily target sellers with their own branded products — not arbitrage or wholesale resellers.
• Brokers typically charge 10% to 15% commission and may add value when a brand qualifies as a “strategic” investment.
• Working with an attorney can protect sensitive business information during outreach and negotiation, billed at hourly rates rather than commission.

Why It’s a Seller’s Market for Amazon Brands

Last year, Rafelson Law Firm saw a record year in M&A activity helping Amazon seller clients exit their businesses — well in excess of a hundred million dollars in the aggregate. The driver of this demand is the rise of “aggregator” companies — firms that buy Amazon brands en masse to scale them under unified processes for managing brands on Amazon.

These aggregators have convinced private equity, banks, and venture capital markets that they can generate significant returns by consolidating brands. Thrasio, the most well-known aggregator, has been reported to be valued at over $1 billion. Many other aggregators have followed with significant funding behind them, and new ones continue to enter the market regularly.

What This Means If You Sell on Amazon

If your business is primarily Amazon-based and you sell your own branded products, there is an active market for your brand. This applies less to arbitrage and wholesale sellers — aggregators do not appear to be focused on those models at this time.

Do You Need a Broker?

With many active buyers in the market, locating a buyer for a reasonably-performing Amazon brand on your own is feasible. Many aggregators are openly soliciting outreach from brand owners.

That raises a fair question: if it is so easy, why use a broker?

Brokers can add value during negotiation. With aggregators paying within a fairly defined market range for brands, the question is whether a broker’s involvement justifies the typical 10% to 15% commission. There are two scenarios where a broker may make a meaningful difference:

• Strategic investment fit. A good broker can identify whether a brand qualifies as a “strategic” investment — where multiples could exceed what a typical aggregator pays. This is most likely when there is something proprietary or IP that prevents others from easily replicating the business.
• Buyer network beyond the common aggregator pool. A broker whose contacts extend past the well-known aggregators may surface a uniquely interested buyer.

For a brand that is one of many similar products in a saturated category, neither scenario is likely to apply.

What’s the Alternative to Working With a Broker?

Many of the deals that come across Rafelson Law’s desk involve sellers who have solicited offers from aggregators directly. While that approach is functionally straightforward, it carries risks — chiefly around protecting sensitive business information.

There is a time and place during an M&A transaction where certain sensitive information needs to be disclosed. Sharing that information indiscriminately in response to early inquiries can put a business at risk.

Working With an Attorney Who Knows the Process

An experienced attorney can help protect sensitive information, evaluate whether a broker is necessary, assess the state of the business’s financials, and develop a targeted strategy for which aggregators to approach and how to negotiate price and terms.

Rafelson Law’s hybrid model coaches Amazon sellers through the sale process at standard hourly rates rather than a percentage commission. The firm has worked with numerous aggregators worldwide.

Free Consultation for Selling Your Amazon Business

Before reaching out to Thrasio, Boosted, Recom GOJA (formerly 101 Commerce), or any other aggregator, schedule your Complimentary Amazon Exit Strategy Consultation with Paul Rafelson of Rafelson Law PLLC. Paul has assisted clients with dozens of Amazon deals collectively worth over hundreds of millions of dollars.

Frequently Asked Questions

Who buys Amazon FBA businesses?

The most active buyers are aggregator companies — well-funded firms that acquire Amazon brands at scale. Thrasio is the most prominent example. Many other aggregators with significant private equity, bank, and venture capital funding are also actively buying.

What kind of Amazon sellers do aggregators want?

Sellers with their own branded products. Arbitrage and wholesale resellers are generally not targeted by aggregators at this time.

How much do business brokers charge to sell an Amazon business?

Typically 10% to 15% of the sale price as commission.

Can I sell my Amazon business without a broker?

Yes — many sellers contact aggregators directly. The main risks are protecting sensitive information and negotiating effectively without representation.

When is a broker worth the commission?

When the brand qualifies as a “strategic” investment that could attract multiples above the standard aggregator price, or when a broker’s network extends beyond the publicly known aggregator pool to a uniquely interested buyer.