Is there a pitfall in selling accounts and “exiting”? Amazon store transactions are fraught with risks

Back in 2020, when most Amazon sellers were still enjoying the bonus period brought by the epidemic, a small number of sellers had already received invitations from foreign acquirers to acquire stores.

Amazon Store Acquisition Spree

In 2021, the entire Amazon store transaction entered a relatively active period. According to incomplete statistics, from 2020 to the present, there are more than 80 Amazon Aggregators (Amazon brand accelerator companies) in the market whose main business is to acquire Amazon stores. Among them, nearly 10 have set up offices in China or recruited Chinese agents. In 2021, the amount of brand acquisitions completed by brand acquirers in China has exceeded 100 million US dollars.

Behind the current hot market, many acquirers have taken the initiative to contact sellers directly through emails, phone calls, etc. to express their acquisition intentions. Most sellers may directly regard acquisition information from strangers as fraudulent information, and more sellers may collect public information about relevant acquirers on their own and be very cautious and skeptical about the transaction.

Is the brand acquisition a scam?

Once a transaction is completed, all of your data will be made public. For many sellers, failure to complete the transaction is a minor issue, but data leakage is a major issue. If the data is obtained by competitors, the impact will be immeasurable. So is the brand acquisition true or is it a scam? The following information may give you the answer:

1. Among the more than 80 acquirers in the world , there are about 40 active acquirers, about 30 acquirers are expected to look at cases in China, and no more than 20 companies have successful acquisition cases in China.

2. Most brand acquirers were established around 2020, and there are even many newly established acquirers in 2021. Among them, it is estimated that there are no more than 10 acquirers with financing amounts exceeding US$100 million. Since most acquirers are newly established, there is very little public information available for query.

3. Due to the requirements of confidentiality agreements, basically all acquirers will not disclose the specific information or number of their acquisition cases. Of course, it is not ruled out that some acquirers with good promotion will disclose the acquisition cases in a de-sensitized manner, but in general, the details of the transaction cases of each acquirer in China cannot be found through public channels.

4. According to our communication with some acquirers, there is no shortage of target brands for acquisition by acquirers with financial strength, but the success rate of acquisition is not particularly high. The main reason is that it is difficult to find high-quality stores that meet the acquirer's requirements. Therefore, it is often found that the store does not actually meet the acquisition requirements after the seller provides data.

From the above information, we can see that if the buyer is real and has financial strength, Amazon store transactions are a high-quality monetization channel for many small and medium-sized buyers. However, as mentioned above, there is little buyer information and transaction case information available through public channels. It is time-consuming and laborious for sellers to identify the buyer's background by themselves, and the accuracy is limited. Real buyers with financial strength and high-quality store sellers often cannot be directly matched, and there is a large trust cost. Even if they are lucky enough to meet a matching acquirer, they are confused about how to smoothly and efficiently promote the subsequent transaction process, how to ensure the maximization of their own store transaction price, and how to safely complete the delivery of the brand.

There are so many real estate agents in the world, who should we trust?

In summary, professional and reliable intermediary agencies are particularly important in such store transactions. High-quality intermediary agencies can not only identify and match the most suitable buyers for sellers, but also ensure the security of the transaction throughout the process and ensure that the store is sold at the highest price.

Based on the above content, we can know that in the current market situation where the buyer's advantage is more obvious, the existence of seller's intermediary is quite necessary. High-quality intermediary plays a vital role in improving transaction price and efficiency. So, what are the characteristics of an excellent intermediary team?

1. Have successful transaction cases and have successfully completed store transactions in history.

2. We have abundant buyer resources, are familiar with the financial strength and preferences of each buyer, and can accurately match them.

3. Have a professional team, equipped with professional lawyers, accountants, tax accountants and other personnel with cross-border experience.

4. Have rich industry experience, understand the industry characteristics of cross-border e-commerce, and be able to quickly and accurately judge the quality of stores.

Avoid the big pitfalls of store transactions, a professional team is here to help

Ciheng Consulting is a professional consulting firm under Anci Capital that focuses on cross-border e-commerce capital services. Anci Capital and the Ciheng team have led the investment or M&A listing projects of many well-known cross-border e-commerce related companies such as Paton, Tongtuo, Santai, Yibai Network, Starlink, and Feishu Shennuo. The Ciheng team has completed several Amazon store transaction cases and is providing professional services for many small and medium-sized Amazon sellers to sell their stores.

Currently, Ciheng Consulting is handling transactions for many stores and maintaining close cooperative relationships with more than 60 or 70 acquirers on the market. As a professional service agency, Ciheng Consulting promises to provide the following services to high-quality Amazon sellers:

1. It is not just about information matching. We always stand on the seller's side and are determined to find the most suitable buyers for high-quality sellers;

2. Assist in collecting and judging offers and assessing buyer strength;

3. Efficiently promote and control the due diligence process;

4. Assist in drafting transaction documents and negotiate with the acquirer on your behalf to maximize your interests and control transaction risks;

5. Assist in isolating potential risks of store transfer from the perspective of transaction terms and transaction arrangements;

6. Assist you with other issues related to the sale of your store and respond to your questions or concerns at any time.

Choose Ciheng Consulting as your store selling agent to help you avoid various "pitfalls" in store transactions , assist you to complete Amazon store transactions efficiently, safely and smoothly, and escort the entire store transaction. Interested sellers can add Ciheng Consulting (WeChat: CICHENG-GZ) customer service to contact!

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