Last updated on May 22nd, 2024 at 07:56 pm
If you’re looking for an already established ecommerce stores for sale so you could buy and start your ecommerce journey.
This post is for you.
Because I will explain the secrets, benefits and downside of buying an existing e-commerce store someone has put up for sales.
Not only that, you’ll know the most secured and trusted places to purchase or sell your ecommerce store.
Let’s move ight in…
Having an e-commerce store is a big business adventure to go into. A report by Statista projects e-commerce market to a total over $7.9 trillion by 2027, showing continued growth and opportunities in the industry and the revenue in the eCommerce market is projected to reach US$4,117.00bn in 2024 . It has been a profitable business that has seen massive growth considering Covid 19 pandemic that forced people to stay at home for several months, most vendors took their businesses online.
As you can see, data doesn’t lie. Ecommerce market has a huge potential for growth and that is why you should consider acquiring one for yourself.
Starting an ecommerce business from nothing is really hard work. First, you have to figure out which products to sell. Then you need to build a website, drive traffic to it, take payments, ship orders, pay tax, it’s a lot. After all that effort, you still might not make any money much profit as you ought.
Who wouldn’t want an easier way?
Instead of starting from zero, you could buy an e-commerce store that already has products, customers, and sales. An existing online business sold by the owners that lets you skip right past those first difficult steps.
Why Buy Instead of Starting a New Ecommerce Store Business?
Buying an established e-commerce store means you get to take over a business that someone else has worked hard to build up. All the tough startup tasks like finding a good product and getting the website going have already been done for you. You’re just stepping into something that’s up and running profitably.
It’s kind of like buying a house instead of building one yourself. When you buy an existing house, you don’t have to go through the long, complicated construction process. You just get to move right in. Buying an e-commerce business works the same way. Instead of construction, someone else has done the “building” work of getting the online store started and making sales.
Of course, the tricky part is actually finding e-commerce stores that are for sale. But don’t worry, I’m going to explain the best websites and services to use to locate online businesses that you can purchase.
Best Marketplaces for E-commerce Businesses
- Popular General Listings Sites
When it comes to finding online stores that are for sale, there are some great marketplace websites that let you browse the listings easily. These sites are kind of like the real estate listings for e-commerce businesses.
A few of the most popular marketplaces for all types of online businesses and websites are:
- Flippa: This is one of the biggest out there. You’ll find tons of e-commerce stores listed for sale, along with apps, domains, and other online properties.
- Empire Flippers: This marketplace listings online business websites with different monetization such as Amazon FBA, Amazon Associate, Amazon Kindle etc. It vets listings to make sure they meet certain quality standards. The asking prices tend to be higher here.
- FEInternational: Another big name marketplace that focuses on buy and sale of SaaS, e-commerce, technology and content businesses with listings across many categories and price ranges. You can sell your online business or buy one from this platform.
- Motion Invest: Motion Invest is a bit newer but has quickly become one of the go-to platforms for buying and selling profitable internet businesses and online stores, including many e-commerce brands.
- E-commerce Focused Marketplaces
- Bizbuysell: This long-running marketplace has tons of small business listings including e-commerce companies. You can narrow it down to just online businesses.
- Latona’s: A marketplace focused on hosting and internet business listings like e-commerce stores, SaaS companies, affiliate sites and more.
- MicroAcquire: This site pulls in online business listings from various sources into one place to browse acquisitions. Lots of smaller e-commerce stores here.
- Shopify Exchange: Already mentioned this one for specifically buying and selling Shopify ecommerce stores.
- Investors Club: A membership marketplace to buy and sell established internet businesses, including e-commerce brands that meet certain revenue criteria.
- eBay Classifieds – Believe it or not, eBay has a whole section dedicated to listing businesses for sale, including e-commerce stores. You can find some gems here.
- Bizameed: This marketplace focuses specifically on listing Amazon FBA businesses that sell products through Amazon’s platform.
- Business.com: A large, general listings site with a dedicated section for e-commerce and internet businesses for acquisition.
- Unzbunker: An exclusive marketplace that pre-vets e-commerce stores, domains, apps and other online properties before listing them.
- Side Project Traders: More focused on smaller e-comm side businesses and Shopify stores run by solo entrepreneurs.
- Webriait: Has listings for buying total e-commerce migrations, including the website, inventory, suppliers and operations.
- Websiteclosers.com: Already mentioned this one earlier, but worth repeating as another popular dedicated e-commerce business marketplace.
- Brokers and Private Listings
While those big online marketplaces have a tons of e-commerce businesses listed publicly, some of the best opportunities are found through brokers and private listing channels. This isn’t quite as easy, but can be really worthwhile.
What Are The Benefits of Using a Broker?
I know you might be wondering why you need a broker instead just visiting the top listing sites, let me explain why.
Hiring an experienced business broker, especially one that specializes in e-commerce and online stores, can be a smart move when you’re looking to buy an e-commerce business. Here are a few key benefits:
- Brokers have access to unlisted property sale opportunities you won’t find on public marketplaces. This lets you get a jump on listings before they’re available to everyone.
- They vet opportunities in advance to make sure the finances and operations check out before presenting to buyers. No wasting time on dud listings.
- Brokers provide guidance on valuing the business, negotiating, and getting a fair deal structure in place for the acquisition.
- They handle mediating between the buyer and seller, managing due diligence, and closing the deal in a professional manner.
- The downside is you typically have to pay the broker an upfront retainer fee and/or percentage of the sale price as their commission. But it can be well worth it to have an expert in your corner. Just be sure to choose an accredited, reputable broker.
How To Find Private Listings
If you don’t want to involve a broker, you can also try to uncover private e-commerce business listings directly through networking, connections, and some digging:
- Attend conferences, meetups, and entrepreneurial events where you can connect with e-commerce owners looking to sell their businesses.
- Join online communities and forums focused on e-commerce and buying/selling online businesses
- Check out listing notification email lists that some brokers offer for their latest private opportunities.
- Search for entrepreneurs posting on social media or online about selling their e-commerce companies
To find these private listings takes a lot, but can give you early access to great opportunities before they hit public marketplaces. You just have to really put yourself out there.
Evaluating Listings
Let’s say, you’ve searched those marketplaces and channels, and hopefully found some potential e-commerce stores that caught your eye to potentially acquire. Now the real work has to begin which involves evaluating those online business listings thoroughly to find that gold in the dark.
Key Criteria to Assess When Evaluating An E-commerce Store For Sale
When you’re reviewing an e-commerce store for sale listing, there are some crucial areas you’ll want to analyze carefully:
- Financials & Growth:
- Study the profit/loss statements, balance sheets, tax returns – do the numbers actually show a profitable business?
- Look at revenue trends over time – is the store growing consistently or declining?
- Check things like gross margins, customer acquisition costs, marketing expenses to gauge viability.
- Operations & Supply Chain :
- How are products sourced and what suppliers are involved? Are there risks there?
- Where is inventory stored and how are orders processed/shipped? Is it a smooth operation?
- What technologies, platforms, and systems drive the e-commerce engine?
- Online Presence & Traffic:
- How much traffic is the website getting and where does it come from? (Google, ads, email, etc).
- What do conversion rates and customer behavior metrics look like?
- How strong is the brand reputation, social media engagement, subscriber lists?
- Pricing & Valuation Benchmarks:
As you’re evaluating opportunities, you’ll also need to get a sense of whether the asking price is a fair valuation or not. This isn’t a law but some common rules of thumb to note are:
- Most profitable e-commerce businesses sell for 2-4x the annual net profit.
- Recurring revenue e-comm models can fetch higher multiples of 4x+.
- Larger established brands may sell for 6x+ multiples.
- The multiple depends on growth rates, underlying assets, competitive advantages, etc.
Don’t just take the seller’s arbitrary asking price at face value. You need to scrutinize every aspect of the business to determine if the valuation is justified and a good long-term investment for you.
Due Diligence Process
Even if an e-commerce business looks great on paper initially, you can’t skip or rush proper due diligence before acquisition. This protects you from any nasty surprises.
- Review Documentation
Request and carefully review all relevant documentation, including:
- Detailed profit/loss statements and balance sheets for the past 2-3 years minimum.
- Traffic analytics showing website traffic sources and trends.
- Supplier contracts, terms and account standings.
- Asset lists of inventory, equipment, domains/URLs, etc.
- Contracts with any third-party service providers.
- Legal documents like operating agreements and intellectual property
- Ask the Right Questions
In addition to documents, you need to interview the current owner extensively, make sure to ask the following questions:
- What are their genuine reasons for selling the business?
- How do they acquire customers and what are their marketing strategies?
- What growth plans and initiatives were in the pipeline?
- Are they willing to provide training/support during the transition period?
Read between the lines and watch for any red flags or hesitation in their responses. You want to truly understand the full picture.
Closing the Deal
If after thorough due diligence you decide this is still a legit e-commerce opportunity worth buying, then go ahead follow these steps to further seal the deal. It’s not over.
- Negotiation Tactics: You’ll need to explore these tips to negotiate better and get it at good price:
- Never accept the initial asking price. Always negotiate.
- Leverage any issues or risks you uncovered to argue for a discount.
- Propose an earnout or partial seller financing to tie final pricing to future performance.
- Don’t get emotional – be prepared to walk away if no agreement is reached
- Financing the Acquisition
Even if the seller agrees to your offer, you’ll still need to secure proper funding to acquire it, especially if it’s worth more than your budget. Here are tips to help you secure funding depending on what you prefer.
:
- Bank loans or online lenders for the primary acquisition financing
- Investors like angel groups or crowdfunding to raise capital
- Rollover for Business Startup from your retirement accounts.
- Negotiating seller financing terms for a portion of the purchase.
Get pre-qualified and have optimal financing lined up before negotiations to avoid issues closing the deal.
There’s a lot more that goes into buying an e-commerce store versus just the searching part. Taking the right steps during due diligence, negotiations and financing is critical for long-term success with your new online business! Let me know if any part needs more detail.
Conclusion
Buying an established online business is no cake walk, but it can be an amazing shortcut to generating income online rather than starting an e-commerce store entirely from scratch. As you go on your journey to acquire an e-commerce brand of your own, here are some key parting tips to keep in mind:
Look for Opportunity, Not Just Products
Don’t just hunt for e-commerce stores selling trendy products you like. Look for real business opportunities with sustainable demand, healthy profits, and growth potential.
Whether it’s a broker, seller, or listing details, take nothing at face value. Verify everything through extensive due diligence to avoid any unpleasant surprises.
Get Pre-Qualified Financing
Having your acquisition funding squared away in advance puts you in a stronger negotiating position and prevents deals falling apart last minute.
Negotiate Like a Pro
Never pay the asking price. Use leverage and insights from due diligence to negotiate a better deal that prices in any risks or downsides you’ve identified.
With preparation, patience, and putting in the proper work, I’m confident you can find and acquire that perfect e-commerce store that sets you up for online business success.
I hope this guide has provided a solid overview of the best platforms and processes for buying an online store. Let me know if any other questions come up. check out top 6 online business website for sale you can buy to start your ecommerce journey.
