How to Transfer Amazon Account Ownership
So you’ve built a successful FBA business on Amazon, and you’ve managed to turn it into a profitable exit strategy. Congratulations on your big move! But one thing you need to know before you celebrate is how to transfer Amazon account ownership. According to Amazon’s official policy, Seller Accounts are non-transferable, but that doesn’t mean you can’t sell your business and let the new owner take over.
In this article, we’ll discuss how to transfer an Amazon account to make the process easy for both parties.
How to transfer Amazon account?
The ideal way to transfer your Amazon account is through migration. In this process, the original owner hands over the business to the buyer to fully acquire the Seller Central account. Do note that it takes anywhere from 1-3 months to migrate an Amazon FBA account, so it will take a while for the buyer to acquire the Seller Account.
Here is the step-by-step process on how to do it:
Step 1: Updating Amazon on the upcoming account changes
The first step you need to do is to contact Amazon regarding the changes you plan on making to your Seller Account. Both parties should prepare a letter that addresses the following changes:
- Email address
- Social Security Number
- Contact information
- Payment information
- Authentication details
The buyer will need to open a new Amazon storefront to accommodate the transfer of ownership. To do this, the buyer will need to contact Amazon on opening a new account. You can skip this process if the buyer does not have an existing seller account. You can contact Amazon by phone or the cat feature in Amazon Seller Central.
Step 2: Changing the information in your FBA account
Once Amazon approves the account changes, the next step is to replace your account information with the buyer’s details. To speed up the process, the buyer should have a bank account prepared along with a legal entity that’s not linked to an existing Amazon account.
You want to make these account changes using the same IP address you frequently use to run your account. Otherwise, it will trigger a fraud alert from Amazon and complicate the transfer process.
Step 3: Transferring other assets
After updating the buyer’s information in your account, the next step is to transfer digital assets such as:
- Social media accounts
- Email and push notification lists
- Software applications
- Subscription accounts
It’s a good idea to organize all your digital assets and prepare the username/login credentials to hand over to the new owner. Remind the buyer to change credentials as soon as possible to maintain the security of the accounts.
Do note that finalizing any U.S. trademarks can take up to two months, so make sure to secure receipts upon completing the application so that you can transfer assets seamlessly.
Step 4: Evaluation process
Now that the buyer has everything they need to run your Amazon FBA account, the next step is to evaluate the performance of all revenue-generating assets. Think of this step as a trial period where both parties assess the capabilities of the business and see if it delivers as advertised.
Usually, the evaluation process takes anywhere from one to two weeks, depending on the agreement between the buyer and seller. It’s recommended that the buyer does not make any changes to the Seller Central account to make accurate calculations.
Step 5: Finalizing the deal
The last step of the account migration process is to finalize the deal. Once both parties are satisfied with the evaluation process, the seller can secure the funds. At this stage, the buyer should have their account number visible on all of the assets they’ve acquired.
How can you increase the value of your Amazon account?
A lot goes into selling your Amazon account than just profit margins and sales figures. You can make your business more attractive to prospective buyers by:
1. Updating your product listings
Well-optimized product listings are key to driving sales on Amazon. You want to ensure your listing use high-quality images, videos, and top-tier content to appeal to potential buyers.
There are plenty of ways you can improve your existing listings, and that is by using a listing optimization tool. Such software applications can analyze your current listings and see how it stacks up against high-performing listings. Take the time to update your listings, and your Amazon FBA business will look more valuable in the eyes of buyers.
2. Having organized books
To solidify the value of your business, you need to have accurate financial transactions. Organized books are a good indication of how well your business performs, and buyers will want to look into your records to verify its profitability.
Monitoring expenses is crucial to any business, and as an owner, you should have a clear idea of your income and expenses. Tidy up your financial records first so that you can sell your Amazon account faster.
3. Maintaining good supplier relationships
Behind every successful Amazon seller account are rock-solid supplier relationships that bring their products to life. You want to ensure that the supplier you work with is reliable and trustworthy enough that they can continue to deliver on the expectations of the next owner.
A good supplier should be able to deliver consistent, high-quality products that meet the exact specifications you request. When buyers know your business is backed by reliable suppliers, they’ll feel more confident in purchasing your business.
4. Highlighting sales channels
Some buyers prefer acquiring an Amazon account that has a presence on other platforms so that they can generate more sales. Does your business sell exclusively on Amazon? Or do you list your products on other marketplaces like eBay, Walmart, or even Shopify? If so, it’s worth mentioning your additional sales channels that can up the value of your business.
5. Broadening your product range
While it’s possible to sell an Amazon FBA business that consists of one or two products, buyers will appreciate it if you have a diverse set of products to sell. This is because a broader product range evenly distributes the risk the buyer will need to take when acquiring your business.
While transferring an Amazon account ownership may seem complicated, the process is more straightforward than most people think. All it takes is knowing the right procedures, and the new owner can successfully migrate your business to their seller account. Follow these procedures to ensure a smooth transition and to help make your business more appealing to prospective buyers.
Managing the financial health of your Amazon business is crucial to its profitability. If you need any help with expert bookkeeping services, our team is ready to assist you. Simply fill out the form below, and our team will contact you shortly.