Sell ​​the shop and buy a house in Sanya for retirement, Amazon’s “popular shops” are being acquired one after another!

After a year of fermentation, sellers are no longer unfamiliar with capital acquisition of Amazon stores. Now, with the influx of more and more acquisition companies such as Accel Club , the acquisition price has also risen. Previously, the offer was generally 3 to 5 times the annual gross profit, but according to feedback, it has now increased to 6 times.

Everyone has seen the market situation of Amazon in 2021: a large number of sellers have fallen under the wave of account suspension, changing policies, logistics congestion, skyrocketing prices, and a lack of sales during the peak season. Therefore, many sellers are no longer as resistant to selling their Amazon stores as before. Some sellers even took the initiative to contact investors, lamenting that they wanted to sell themselves, but no capital came to them.

Those who successfully sold themselves happily began planning their future lives.

"I have sold my property and am planning to buy a house in Sanya for retirement"

One night four years ago, seller Catherine Seifert had the idea of ​​making a gadget for placing handbags in cars in her dream. It was this sudden idea that made her earn a lot of money on Amazon in the future, and in 2021 it also attracted the attention of 20 capitals.

At the time, the gadget was ranked 24th among more than 500,000 automotive products and had social recognition from more than 6,000 satisfied customers, which can be said to be excellent.

Eventually, Catherine sold the brand to a leading acquisition company in the United States. In fact, the company had sent her an email a year ago, but she thought it was a scam and put the email in the spam folder. "Its URL looked weird," Catherine said.

This is not surprising, because half a year ago, many sellers had the same idea, thinking that this was just a means for people with bad intentions to cheat store data, or their goal was to select products. But half a year later, many sellers, like Catherine, have successfully sold their Amazon stores.

Some people said that they had sold two brands and were planning to make some money. Some people sold multiple projects that they jointly operated with others. Another person said with relief that his brand sold for more than 5 million yuan and he was now planning to move to Sanya to buy a house for retirement.

From the current perspective, there are two reasons why sellers are selling themselves one after another. One is that the market is not good and it is becoming increasingly difficult to do business on Amazon, which is particularly evident in 2021. The other is that due to the massive influx of capital, fierce competition has driven acquisition prices to continue to rise. As we all know, the acquisition price in the market is generally priced at 3 to 5 times the annual gross profit, but according to feedback, it has risen to 6 times the annual gross profit in the fourth quarter of 2021. In other words, if a seller has a sales volume of 10 million a year and a gross profit margin of 20%, the annual gross profit will be 2 million, and 6 times the annual gross profit will be 12 million. Without considering the growth factor, it is equivalent to getting the gross profit income for the next 6 years.

Under the suppression of the market and the stimulation of capital, sellers have said that it is better to take the money and leave Amazon, this sad place, as soon as possible.

“——Capital monopoly, it’s a good thing to sell it early;

——Today is cruel, tomorrow is crueler, but the day after tomorrow is beautiful. Most people will die tomorrow night, so it is better to put them in the bag.

——I sold it. I spend more time in the store than with my son. "

Although many sellers have expressed their desire to sell their stores, the investors may not necessarily buy them. Many sellers have received SMS, phone calls, and emails from investors, but not many have closed deals. One seller said that a investor valued his brand at $7 million and even came to his store for a chat, but nothing happened in the end.

However, this situation may be broken with the influx of more capital financing.

Accel Club receives $170 million in financing, focusing on Chinese sellers’ store acquisitions

Marketplace Pulse data shows that in January 2021, Chinese sellers accounted for 75% of Amazon's new sellers, a significant increase from 47% in 2020.

In fact, the proportion of Chinese sellers among Amazon's global sellers has been increasing in recent years, and it soared sharply from last year to early 2021.

Data shows that the GMV share maintained a similar trend, increasing from 16% to 22% in 2017, from 23% to 26% in 2018, from 26% to 33% in 2019, and from 35% to 42% in 2020.

According to a report released by Marketplace, 62% of Amazon's global GMV in 2020 came from third-party sellers, higher than 60% in 2019 and 58% in 2018.

Based on this, many acquisition companies turned their attention to Chinese sellers as soon as they obtained financing.

Of the 89 active Amazon brand acquisition companies, 46 have announced funding, with 29 raising at least $100 million, Marketplace said.

Accel Club is one of them. On November 30, 2021, Accel Club announced that it had received US$170 million in Series A financing. This round of financing was led by Redseed and North Wall Capital, and followed by Flyer One Ventures.

Not surprisingly, Accel Club has also set its sights on acquisitions in China. It is reported that this acquisition company, founded in Amsterdam, the Netherlands in 2020, focuses its acquisition and integration business on Amazon sellers in Europe, the United States and China. Since February 2021, Accel Club's revenue has reached tens of millions of dollars many times, and its team members have now increased to more than 100 employees.

Compared with other acquisition companies, Accel Club is also very strong, not only in terms of its strong financial resources, but also in terms of the professionalism of its team.

Accel Club was founded by Max Firsov and Nick Tuzenko. Max has more than 15 years of experience in e-commerce. He is the founder and CEO of Yandex.Eats and the head of Yandex Food Technology Services. Nick worked at the Boston Consulting Group and served as the managing director of Busfor, which was acquired by BlaBlaCar in 2019. In addition, the core team has many years of experience in e-commerce, technology, and consulting industries, and comes from well-known companies such as Alibaba, McKinsey, Procter & Gamble, L'Oreal, and Google.

Max Firsov said that in the online market, traditional consumer goods companies are losing share and being replaced by emerging brands that offer high quality and low prices. Accel Club will provide different operating methods for these two types of merchants through its expertise in operations, supply chain and marketing to help them build their online businesses.

It is understood that Accel Club is expected to complete more than 50 transactions by the end of the year . Now, in order to better connect with Chinese sellers, it also plans to set up an office in China.

The scale, growth and profit of sellers are the three main indicators for Accel Club to decide on the track and brand to be acquired. As for the acquisition price that sellers care about, Accel Club said it will acquire brands at a higher price than its competitors and with a larger proportion of cash. The specific operation is to adopt the "profit + growth dividend" method. It is worth noting that unlike some competitors who determine dividends based on profits and sellers, thus blurring the brand's value indicators, Accel Club calculates dividends based on revenue.

If the seller wants to sell his own store /brand , he can long press to identify /scan the QR code below to contact Accel Club for quick contact.

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