Ecommerce has become an increasingly popular business model throughout the world. Many business owners are now selling their goods and services through online stores. However, after running an ecommerce business for a while, you might want to sell it for the following reasons:
• The store has grown in value and you want to cash in
• You have an emergency and need the money
• You have disputes with your partners and decide to shut down
• You are tired of the business and want to venture into other things
With that in mind, here are some things you need to do when selling your ecommerce business:
1. Establish your online store worth
Age is one of the factors that will determine the worth of your business. Usually, buyers look for online stores that are not less than 18 months old. But the older your site, the higher you can price it. Owner involvement is another thing you need to keep in mind. Buyers are looking for a source of passive income. Therefore, if you spend most of your time running the business, its value will be lower. Trends will also influence the value of your store. If your niche is projected to grow in popularity then your store will be deemed more valuable.
2. Boost the value of your store
Before putting up your ecommerce site for sale, you need to find ways of increasing its value so as to sell at a higher price. One of the first things you need to do is sharpen your brand. You could redesign your website for a more professional look. Make sure your ‘About Us’ page gives an accurate representation of what the business is all about. Don’t forget to clean up the rest of your web content and images. Reviews can also help boost the value of your site significantly. If you don’t have enough, encourage a few customers to share their feedback. Finally, buyers value an ecommerce site that has an email list that can be used to encourage repeat purchases.
3. Choose the right platform for sale
When it comes to listing your ecommerce site for sale, there are several options you could consider. You could sell it on a marketplace such as BizQuest, BizBuySell or Exchange. Though you will be required to pay a listing fee, a marketplace allows you to reach a wide range of potential buyers. Auction sites such as Flippa can also help you reach a large audience. Alternatively, you could hire a professional broker to handle the sale. However, this might be a more expensive option since brokers charge up to 20% of the sale value. The least expensive option would be to sell your business privately. Though this will save you money, it might take you a long time before finding a qualified buyer.
4. Get the deal right
Make sure you have a watertight NDA (Non-disclosure agreement) and non-compete contingencies which will help safeguard your business’ proprietary information. All the details of the deal need to be clearly laid out on paper. If payment is being made in installments, be sure to get as much as possible upfront. When and where the balance will be paid should be indicated in the written agreement.
About the author
Charles Mburugu is a HubSpot-certified content writer/marketer for B2B, B2C and SaaS companies. He has worked with brands such as GetResponse, Neil Patel, Shopify, 99 Designs, Oberlo, Salesforce and Condor. Check out his portfolio and connect on LinkedIn.