Amazon FBA Due Diligence
Receive a 21-point analysis on an Amazon FBA business acquisition. Our goal is to minimize risks so you get the best deal. View a sample report.
Our Due Diligence Service Eliminates Risks
Our team has performed due diligence on over 1,000 businesses since 2008. We’ve scaled several FBA businesses to over 7 figures.
We know how to perform due diligence. We find the pros and cons of each acquisition to save you from making a mistake.
What’s Covered?
We perform a rigorous 21-point analysis of your Amazon FBA acquisition. We deliver a written report outlining our findings with metrics to showcase the pros and cons of the asset.
Our analysis digs deep into these categories.
Market Overview
Most Amazon FBA brands are based around a specific niche. We’ve analyzed FBA businesses for sale in multiple different categories and understand the ins and outs when it comes to dealing with individual categories and market nuances. We look at:
Overall market size and trends
Product placement in the market
Potential market opportunities
Product Overview
Strong unit economics and a moat against competition help build durable long-lasting FBA businesses. To evaluate this, we analyze the unit economics of each product and consider its potential longevity in the marketplace. We look at:
Unit margins
Defensibility against competition
Review structure
Listing Overview
On Amazon, the product page listings are the cornerstone of the business and the first experience customers have of your company. After selling successfully on Amazon for 4+ years, we understand how to build a converting listing. We analyze and put into context:
Key metrics
Listing SEO and images
Opportunities to improve the listing
Amazon Ad Strategy
More than ⅔ of Amazon FBA sellers use the Amazon advertising platform to drive traffic to their listings. After consulting on Amazon Ad strategy for multiple 7-figure FBA brands, we understand how to optimize the paid traffic strategy in order to improve the business. We analyze:
PPC spend by product
Usage of different ad types
Opportunities to expand or reduce spending
Supply Chain and Logistics
As a physical products business, an Amazon FBA business can succeed or fail by the strength of it’s supply chain. We go through each aspect of the supply chain to understand the current strengths, weaknesses, and opportunities that exist to optimize. We look at:
Supplier terms and lead times
Supplier risks and opportunities
Amazon inventory management
Valuation
Valuation of Amazon FBA businesses is based on a multiple of Seller’s Discretionary Earnings (SDE). Determining the valuation multiple is a critical factor that depends on the niche, market trends, trends, Amazon metrics, and more. We look for:
Evaluate asking price and multiple against market trends
Expert suggestions on what business is actually worth
Assistance with negotiating with seller or broker, if needed
P&L Verification
The valuation of the business is based on a multiple of past earnings. Our team has deep expertise in catching red flags in a P&L that do not match the actual earnings. We look for:
Verifying claimed revenues via screenshots or video
Verifying the seller’s P&L numbers against revenue screenshots
Verifying revenues against industry-standard averages
The Due Diligence Team
David Holmes, Amazon FBA Advisor
David has acquired, grown, and successfully exited 2 Amazon-based businesses. He now consults for multiple 7-figure Amazon FBA brands.
David acquired a declining Amazon FBA business in January 2020. By revitalizing the listing, the Amazon ad strategy, and the supply chain, he grew revenue 500% in the next 12 months while reducing the cost of goods sold. He ultimately sold that brand in September 2022 to a private buyer.
David has deep expertise in Amazon FBA’s ecosystem.
Elliott Davidson, Ecommerce Advisor
Elliott is an award-winning eCommerce consultant and entrepreneur. He is the owner and operator of several 7-figure online stores and the founder of his own eCommerce digital marketing agency, Contrast.
With over 8 years of experience in digital marketing both in-house and agency-side, he’s helped deliver successful website migrations and implement scalable PPC sales funnels for local and global eCommerce businesses, all the way to generating multi-millions in organic revenue.
One of his main growth strategies is to leverage M&A. Over the last several years he has used this method and bought several businesses from IP, stock, and LTD purchases.
Mushfiq Sarker, Lead Analyst
Mushfiq is the Lead Analyst overseeing due diligence reviews. He has been buying, growing, and selling online websites since 2008. He has sold over 200+ websites with multiple six-figure exits.
He has performed due diligence on well-over 1,000 content websites to date. He has kept up-to-date with the current industry as an operator running his own media company.
Common Questions
Is this service only for beginners in business investing?
First-time investors will find the most value from our service. However, seasoned investors who have purchased online businesses before can use us for a second expert opinion. We can catch red flags or point out opportunities you may have missed.
Who is this due diligence service for?
This service is perfect for anyone looking to purchase an Amazon FBA business. Once you’ve found the business through a broker or private seller, you can utilize our service to have an expert opinion on whether the business passes due diligence.
Do I need to have a Letter-Of-Intent (LOI) on an acquisition?
No, you do need to have made an offer or have an LOI on a content site acquisition. We can perform due diligence before you make an offer.
What is the turnaround on the due diligence?
After we’ve received access to what we need to perform the due diligence, the turnaround time is within 7 business days. If the turnaround time is longer, we will communicate that with you.
Can I get a faster turnaround on the report?
Yes. On a case-by-case basis, we can expedite an order to be delivered in 3-4 business days. There is an additional fee for quicker turnaround.
What’s required to perform due diligence?
We require the following to perform due diligence:
- Amazon product listings
- Access to Amazon Seller Central modules with guest permissions
- P&L spreadsheet
We will work with you, the seller and/or the broker to obtain the data we need to perform the review.
How is the report delivered?
A link to download your written report (PDF) will be sent to the email address used to purchase.
Pricing & Next Steps
Due Diligence Report: $2,900+
Our advisors will perform a 21-point analysis of your potential Amazon FBA acquisition. You will receive an in-depth PDF report. View a sample report.
Final pricing is dependent on a number of brands, SKUs, and geography.
We deliver the results within 7 business days.
Easy Wins Teardown: $1,190+
We pinpoint growth opportunities leading to increased revenues. Doing this prior to closing provides confidence.
Final pricing is dependent on a number of brands, SKUs, and geography.
The deliverable is an additional PDF report. No additional turnaround time is needed.
Fill out the contact form with basic details of the business you would like to acquire. We will follow up in less than 24 hours if we can perform the due diligence review.
