Ecommerce Blog - Fortune3

How to Sell Your E-Commerce Business for a Great ROI

fortune3-buying-and-selling-ecommerce-imageReady to sell your e-commerce business?

Is that what you got into it for?

Some e-commerce entrepreneurs live by buying and selling e-commerce businesses.

Regardless of why you’re thinking about selling, the simple fact is you do want to sell.

How do you make sure you get the most money for yours?

Some tips to follow:

1. First, Know the Average Sale Price

According to eCommerce Platforms, the typical ecommerce businesses sells for 2-3 times its net profit. And the average total sale price is between $20,000 and $2 million.

So, unless your business is absolutely tanking in a dying market, you should be able to pull a price around there at a minimum.

2. What Factors Affect Your Sales Price?

Every buyer wants a good ROI within a few years. No one wants to wait an extended period of time. Everyone wants to make money.

Here’s a few of the factors you need to have:

• A solid age of at least 2-3 years

• Consistent profit growth

• Diversified traffic sources

• High amounts of repeat business

• Large, engaged mailing list

• Repeatable growth strategies in place

• Demonstrated ability to grab market share

• Experienced team in place

• In a hot and growing market

• Experienced employees and leadership

• No legal threats

Basically, the more predictable a good ROI seems, the better.

3. Why Don’t Buyers Buy?

Let’s say you start talking with a buyer or two, and then they suddenly drop off the face of the earth. It’s rare in business that you get a straight and direct answer as to why this happens.

But when you lose touch with someone, it means something caught their interest that told them not to buy. That could be:

• You’re overly optimistic about your business and want too much money

• The funding the buyer thought they had lined up is no longer available

• The buyer was involved in multiple deals and spotted a better opportunity

• Something about your data doesn’t quite make sense to  your buyer

• Your business or niche, upon closer inspection, doesn’t appeal to your buyer

4. Get Multiple Offers

If there’s one tactic you should follow, it’s this one. This helps you negotiate either better terms or a higher price.

Make sure you can show your buyer email offers from other buyers so they have convincing proof you’re telling the truth.

If you’re not getting multiple offers, then work on your business until it is in prime position for getting them. The leverage you get from multiple offers is that powerful and is worth your time.

Good luck selling your e-commerce business. Make sure you do your due diligence so you guarantee yourself the best possible deal!

Posted in Ecommerce Essentials & Tips, How To