Amazon FBA businesses typically sell for 2-3 times trailing 12-month net profit, though fast-growing brands can fetch 4-5 times. Product category, growth rate, and product mix all affect the final multiple.
So like a question I get asked frequently is how much my business is worth in the Amazon FBA space. It's a little bit different than most, and I've purchased Amazon FBA businesses in the past, and I'm also selling one of my Amazon FBA businesses. So I get a good realm of an idea of what your business is worth. And look, there's other factors like what category you're in, what is the growth trajectory, are you growing year by year, um, the type of products you're going ahead and selling. So there's other factors, but this is a good rule of thumb. You take whatever you are making net. We're talking about profit after every single expense in your actual business. And usually you're able to go ahead in the last trailing 12 months, you can sell your business for 2 or 3 times a yearly profit. So if you're making $100,000 a year in your Amazon FBA business, there's a good likelihood that you'll be able to sell that business at $200,000 or $300,000. But again, there's other factors that matter. If your brand is growing like crazy and you have consistent growth year over year, you're able to actually fetch all the way up to 4 to 5 times yearly multiple. So keep that in mind.
