The interest in eCommerce has grown steadily but powerfully in recent years. Forecasts show that by 2027, online shopping revenue in the U.S. will surpass $1.5 trillion. With a great interest in online buying also comes a great interest people looking to sell an eCommerce business.
Hopefully, your eCommerce company has seen a positive development and perhaps you feel that now is the time to sell the business. There are various reasons why you might want to sell.
You might want to raise extra funds for your next venture, you might want to sell up if your ecommerce business has peaked, or it might be that you’ve reached a time in your life where, after many years of running an eCommerce business, you want to try something completely different or simply spend more time with family and friends.
With the boom in the industry, in most cases, it is possible to sell an eCommerce business at a good price, but a successful sale requires preparation and planning.
When you decide to sell your eCommerce business, there are several variables to consider to make the sale as smooth as possible. Below, we share some of the best tips for selling your eCommerce business for maximum value.
Evaluate Your Site and Prepare It for Sale
If you’re selling on Amazon or eBay, you might be curious about what your options are for selling. If one of your most pressing questions is how to sell my Amazon business or eBay store for maximum profit, you must first take a minute to imagine yourself as a potential buyer. There must be a viable business to sell. Review your shopfront and improve any listings which need to be better.
Regardless of which marketplace you sell on, prospective buyers will like to see that you have a functioning website. So it is important to ensure that your website and online store appeal to potential buyers. If there’s confusion, clutter, navigation problems, poor UI/UX design, and broken links, potential buyers will see this as more work they need to do after they buy your business.
Review the Internal Structure
When you sell an eCommerce business, it can sometimes be a complicated process. It is therefore important to have an orderly internal structure. Before meeting with interested parties, you should always make sure to have all information about your eCommerce and all agreements before sealing the deal.
A clear structure will increase the chances for a successful sale rather than if it appears to be chaotic and disorganized. Keep transfer, purchase, and other important agreements organized, or else you’ll struggle to make a profitable sale and the entire process will take significantly longer than necessary.
Update Your Inventory
Your products are the core of your eCommerce business and also one of your biggest expenses. Every owner must be able to manage their inventory and keep track of out-of-stock items. To manage your inventory and understand peak seasons, you will need an organized system.
Your business's value will be lower if your store is frequently out of stock or doesn't offer satisfactory customer service.
This is an important part of running an online business. Hiring someone who can manage your inventory management can help you avoid these problems. This will help you avoid costly mistakes such as ordering too many items or running out before you can reorder.
Take stock of your inventory and ensure that your product pages are current if you want to maximize your eCommerce business's value.
Manage Your Financials
While you might be a great seller of products online, most entrepreneurs don't have the knowledge or skill of bookkeepers or accountants. You might manage all the financials depending on how large and complex your eCommerce operations are.
If you’ve been handling your finances by yourself, now would be the perfect time to hire a professional to help you sell an ecommerce business.
During the sale process, most of the focus might be put on your company's financial statements. Potential buyers, accountants and appraisers, lenders, brokers, and many other people will be looking at your financial statements.
For this reason, keep financials such as tax returns of the last three years, statements of income and cash flow, and balance sheets ready at all times. Some buyers might also want to be provided with additional information. Buyers might feel that you're trying to trick them if they see one single mistake in your financials. This can cause them to lose trust in you and even back out of the deal.
Prioritize Sales and Traffic
The sale of an eCommerce business might take some time. Don’t let the goal of selling your company distract you from business operations. You're still the owner and you must continue running a business as usual.
Keep looking for ways to drive more traffic to your website and increase your sales revenue. These metrics will boost the value of your business to potential buyers. If there's a sudden drop in website traffic or a decline in sales after the business is listed for sale, this could be very concerning for a new owner.
Final Words
Preparing to sell an ecommerce business is a big deal, no matter your reasons for selling. If you want to get the best possible price for your online store and feel confident in handing it over to someone else, keep some of these tips in mind as they will help you get the best possible price for your eCommerce business.
