Why it matters
A business that sells through Amazon, eBay, Etsy, Takealot or an app store does not own its shop front. The platform measures the seller's performance and policy compliance, and it can restrict listings, hold back payouts or deactivate the account when the numbers slip or a complaint lands. If most revenue runs through that account, a suspension is closer to losing the business than losing a channel.
Each platform sets its own targets. Amazon, for example, expects sellers to keep their order defect rate (the share of orders with negative feedback, an A-to-z Guarantee claim or a chargeback) under 1%, measured over 60 days.
Account health also shows how the business is really run. Late dispatch, high cancellation rates, product safety complaints and intellectual property claims usually point to problems with stock, suppliers or sourcing that will pass to the new owner.
Transfer is a second risk. Platforms have their own rules on whether an account can change hands, and many ask for fresh identity and business verification afterwards. Check the current rules for each platform before you agree the structure, and take advice on whether an asset sale or a share sale suits the accounts involved. If you go ahead, a holdback or escrow tied to the account's standing after completion can share the risk with the seller.
The Loupe valuation tool reduces the multiple when one platform, channel or supplier accounts for more than 50% of revenue, and makes a larger reduction above 80%.
In an asset sale you buy selected assets of a business; in a share sale (a stock sale in the US) you buy the company itself, with its full history. The choice shapes risk, tax and what needs consent.
A holdback is part of the purchase price the buyer keeps back at completion and pays later if no valid claims arise. Unlike escrow, the money stays with the buyer.
Escrow is an arrangement in which an independent third party holds money until agreed conditions are met. In a business sale it keeps part of the price available to cover claims after completion.
How to spot it
- The listing names one marketplace or app store as the main or only sales channel.
- The seller offers screenshots of the account health page but not a live view.
- Listings have been removed, suppressed or restricted in the last year, or related accounts have been closed.
- Customer reviews mention counterfeit goods, used items sold as new, late delivery or damage.
- Payout reports show reserves, held funds or unusual deductions.
- There are intellectual property complaints, product safety requests, or a lost approval to sell in a restricted category.
- The account was reinstated after an appeal, and the seller describes this as resolved without evidence.
Questions to ask the seller
- Can we review the account health and performance pages together on a live screen share?
- Has this account, or any account linked to you or the business, ever been suspended, deactivated or placed under review? How was it resolved?
- What policy warnings, intellectual property complaints or listing removals have you had in the last 24 months?
- What share of revenue comes from each marketplace and each country store?
- Are any funds held, reserved or subject to open claims?
- Can this account pass to a new owner, and what verification will the platform require?
Documents to request
- Dated screenshots of the account health, customer service performance and policy compliance pages, confirmed on a live call
- The full notification and case history with the platform for at least 24 months
- Settlement or payout reports for 24 months, including reserves, fees and refunds
- Any appeals or plans of action sent to the platform, with the responses
- Trademark certificates, brand registration records and authorisation letters from brand owners for resold goods
- Product safety, testing and compliance certificates for the main product lines