Ecommerce business for sale
Selling a business can unlock value upfront instead of waiting for profits. Before you put your ecommerce business for sale, preparation is key. Determine your value based on profit, and use marketplaces or brokers to sell. Buyers focus on finances, growth, customers, and operations. Timing matters: the process often takes months or longer.
Content:
- Marketplaces for ecommerce businesses
- Determine the value of your company
- What does a buyer look for?
- Ways to sell your ecommerce business
- Selling Amazon accounts
Selling your ecommerce business
There are several reasons why a business owner can decide to sell their company. Sometimes it is because you are done with it or that things aren’t going as expected.
But most of the times it is just a matter of timing. Like for entrepreneurs who find that their online store has grown to a level that doesn’t suit them anymore. Perhaps it takes too much of their time. Some business owners might want to slow down, or might even think about retiring.
Whatever the reason, selling your business can bring you lots of new opportunities if you do it right. Once you make the decision to sell, be sure to prepare yourself and your company in order to make the most of it.
Once you decide to put your ecommerce business for sale, prepare to make the most of it.
Platforms for selling your ecommerce business
There are several platforms that can help you with the valuation of your business, as well as selling it. Marketplaces that operate cross border through Europe, are:
has helped people buy and sell over 500 million euros worth of online businesses. Entrepreneurs can sell their business on this marketplace. Listing is free of charge, but the platform charges a commission fee when you sell your business.
- sold over 500+ million euros worth of online businesses
- focus on established, profitable businesses
- global buyer network and deal flow
- commission rate based on your business value
- unique online valuation tool
- founded in 2010, based in the USA
Marketplace for buying and selling online businesses across Europe. After registering as a seller on the platform, your company will be listed for sale. Listings range from small online businesses to larger companies. The platform can also carry out the valuation for you.
- filter by country, industry, and price
- buyers and sellers connect directly
- based in Houten, the Netherlands
Ecomma is a marketplace for buying and selling online businesses, with a focus on ecommerce and digital models. It is a relatively small platform, but with active deal flow and a focus on its own acquisitions rather than open marketplace volume. You can filter listings by niche, revenue, and price.
- connects buyers and sellers directly
- focus on Shopify stores
- simple overview of businesses across markets
- based in United Arab Emirates
Determine the value
Obviously, you’ll want to get a good price for your business. You can make an estimation of the company’s value by using your revenue. European buyers usually want to make a return on their investment within three to five years. Calculating your yearly profit can give you an indication of the price you can ask for your business.
What does a buyer look for?
In some cases, you might have to sell your business rather fast. For example because you got offered a job somewhere else, or because you’ve become incapacitated. But usually, entrepreneurs can prepare their ecommerce businesses for sale. It helps to know what a potential buyer is looking for, as this can help you increase your value.
Finances
The first thing a potential buyer usually looks at is the revenue and profit of your store. It’s also interesting for a buyer if you can show them that your company has been growing its profit over the years. If you’re not in a hurry to sell, ensuring that growth over the years before starting the process can definitely help.
Potential buyers are inclined to pay more if your business shows that further growth is possible. Preparing annual financial accounts, including a balance, can be of use here. A buyer will want to see a steady growth of your turnover and profit. An increase of the equity capital will also have a positive effect on the value.
The value of your business will be higher if you can show possible further growth.
A buyer wants you to be clear about your finances. Not only do they want to know your profit before tax, but also more details about your ecommerce business. Provide a clear insight into the gross and net margins of the products you offer.
It also helps to provide data about your customer base. If you have a good average order value or returning customers, a buyer will be more likely to go for your online store.
Reach
The number of customers you have says a lot about the value of your online store. However, a buyer will also be looking for opportunities that could increase that number. Having active social media channels on which you can achieve an enormous reach in addition can increase value.
An active mailing list of customers can also add a lot of value. Even if you make a small profit, optimizing this aspect of your business can increase your company value a lot. Be sure to also have a marketing plan, so that potential buyers will know what the costs of your strategy are.
Website
Your ecommerce website itself plays an important role in the taxation. Make sure your website is easy to use: it should be immediately clear to customers and potential buyers what your concept is. A nice, modern layout and well-functioning software are only the basis. Your brand, approach to your audience and selection of info on each page, have to be unique, and recognisable.
In a world where everbody can make a website in days, it is hard to make them future-proof. Make sure that the appearance of your website is up to date, mobile-friendly, has a short loading time, and that your product photos look perfect. A buyer will then know that they don’t have to spend money on these aspects for the time being, ensuring that you can get a better price.
Internal affairs
There are aspects of your business that aren’t visible on the outside, but can add a lot of value. The flexibility of your company is one example. Having short-term lease contracts for software and warehousing (fulfilment) is more attractive to a potential buyer, because that makes it easier to operate the online store from another location.
Oftentimes, buyers already have their own warehouse or packing location and will want to merge them. If you have long rental contracts or packers that are permanently employed, this can have a negative effect on your value.
Another aspect you should optimize is your purchasing. Have you negotiated discounts with suppliers? Perhaps you have even gained exclusivity for some products? Another perk would be the ability to return products to your wholesaler, when they normally don’t accept those. Having good deals with your supplier or wholesaler can convince a potential buyer. Any trademark rights will also increase your business value.
Are you considering selling your online store or marketplace account, looking for the valuation or on how to find the right buyer? www.businessforsale.eu can help you with this process.
How should you sell your ecommerce business?
Once you know your ecommerce business’ value, it’s time to put it up for sale. It’s up to you how you will go about that. Who are you going to sell it to? Some entrepreneurs decide to sell their business to a competitor. This might seem like a weird move, but a competitor will be very interested in your client base. They are often willing to pay a large sum of money for it.
If you’re sure that your online store has a lot of potential, you can also contact a business broker. They’ll look for a suitable buyer, according to your requirements and conditions. A broker will also be able to offer your business on platforms.
If you want to sell your business quickly, you can consider auctioning it. At most auctions you have the option to set a minimum price, so you don’t run the risk of having to agree to a low bid.
With the continuous fluctuations of the economy, finding the right moment to sell your ecommerce business is difficult. Timing is of the essence though, if you want to get the best price for your business. Make sure that your business is making a profit when you put it up for sale. Selling your business will take time, don’t expect that it can be done in a couple of weeks. For many companies, it actually takes months or even years. Be patient and take your time to learn more about the market.
Sell your Amazon FBA brand
There are also online companies in Europe that are founded just to acquire and scale Amazon FBA (Fulfillment by Amazon) brands. They are actively looking for popular Amazon sellers to acquire. So, if your business generates most of its revenue on the Amazon marketplaces, check out our extensive list of Amazon seller acquisition companies that are active in Europe.
