Amazon Seller Account Due Diligence
A comprehensive framework for analyzing Amazon Seller Central financial health, advertising efficiency, and acquisition viability.
Role
Financial Analysis / E-Commerce Analysis
Industry
E-Commerce
Technologies & Architecture
Evaluating Amazon FBA and FBM businesses for acquisition or scaling requires looking far beyond gross revenue figures. This project involved developing a rigorous due diligence model designed to stress-test seller accounts and uncover hidden risks before investment decisions are finalized.
The analytical framework centers on deep transaction audits, calculating True Cost of Goods Sold (COGS), actual storage and fulfillment fees, return rates, and advertising efficiency metrics like True ACOS (TACOS). By analyzing historical sales velocity against inventory restock limits, the model identifies whether revenue growth is sustainable or artificially inflated by aggressive, unprofitable ad spend.
Additionally, the analysis incorporates review authenticity checks, supplier vulnerability assessments, and account health compliance histories. This structured approach provides business owners and potential acquirers with actionable intelligence on operational profitability, risk factors, and post-acquisition growth potential.