Valuation Multiples & Deal Structures for Amazon-Heavy E-Commerce Businesses

October 05, 2025

by a searcher from University of Pennsylvania - The Wharton School in Philadelphia, PA, USA

I’m currently evaluating a potential acquisition opportunity — a business with a significant share of its revenue coming from e-commerce, particularly through Amazon. Given how highly competitive the Amazon marketplace is, I’d love to get input from those with experience in similar deals: • What valuation multiples (e.g., EV/EBITDA or revenue) are typical for businesses with a strong Amazon component? • How does the competitive nature of Amazon influence the deal structure — for example, the mix of cash at close vs. earn-outs, inventory adjustments, working capital considerations, or seller notes? Any benchmarks, recent examples, or key considerations would be greatly appreciated.

Reply by a searcher
from Baruch College in Miami, Florida, United States

Hey Kai, To me, the opportunity lies in moving the business away from Amazon to maintain a higher margin for yourself. Amazon typically takes 30% of topline revenues from merchants on its platforms. When you think about underwriting the deal, you need to consider the value-add assumptions you're building into your financial model. Also, revenue mix is important and can affect how you value the business. After that - it's whether you're happy with the returns the business will produce compared to your discount rates etc. Hope this helps! Happy to chat more in DMs or email: redacted

Reply by a professional
from University of Akron in Charlotte, NC, USA

We stay away from amazon heavy businesses. Remember, the multiple is your decision to determine the value you place on a business. It's not like a Blue Book value cars. It should be what you utilize to determine what you will pay for a business. For an amazon business, it would have to be a very low multiple along with other factors for use to even consider if we would at all.

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