1. Prepare Your Business for Sale
Before listing your business, make sure it’s attractive to buyers:
Clean Financials
- Organize 2–3 years of profit & loss statements, tax returns, and bank statements.
- Separate personal and business expenses.
- Use accounting software (like QuickBooks or Xero) if you haven’t already.
Optimize Operations
- Document standard operating procedures (SOPs).
- Ensure your supply chain is reliable and not overly dependent on one supplier or platform.
- Reduce reliance on your personal involvement.
Maximize KPIs
- Improve margins, reduce refund rates, and increase customer retention.
- Focus on metrics like monthly recurring revenue (MRR), average order value (AOV), and customer acquisition cost (CAC).
2. Get a Business Valuation
eCommerce businesses are usually valued based on a multiple of Seller’s Discretionary Earnings (SDE) or EBITDA, plus inventory.
Typical eCommerce valuation range: 2.5x – 4.5x SDE
Factors affecting the multiple:
- Business age and stability
- Brand strength and niche
- Traffic sources (organic vs. paid)
- Revenue diversity (e.g., multiple SKUs, platforms, markets)
- Owner involvement
You can:
- Use online valuation tools (e.g., Empire Flippers, Flippa)
- Hire a broker or M&A advisor
3. Decide How You’ll Sell
Option A: DIY (For Smaller Businesses)
- List on marketplaces like:
- Flippa (lower-end businesses, < $500K)
- MicroAcquire (Acquire.com) (startups and SaaS, but also eCommerce)
- Handle negotiations, due diligence, and contracts yourself.
Option B: Use a Broker (Recommended for $100K–$10M+)
- Brokers like:
- Empire Flippers
- FE International
- Quiet Light
- Help with valuation, finding vetted buyers, due diligence, and closing.
- Charge a success fee (usually 8–15%).
4. Create a Sales Package
A strong sales package includes:
- Executive summary of the business
- Financials (P&L, traffic, revenue breakdown)
- Growth opportunities
- Tech stack (e.g., Shopify, Amazon FBA, WooCommerce)
- Inventory and logistics details
- Screenshots of dashboards (Shopify, Amazon Seller Central, Google Analytics)
5. Find and Vet Buyers
- Qualify buyers by checking for funding, experience, and fit.
- Use NDAs to protect your business info.
- Be honest about risks—transparency builds trust.
6. Navigate Due Diligence
Expect 2–8 weeks of review. Buyers will verify:
- Financials
- Traffic and conversion data
- Legal compliance
- Supplier relationships
- Customer feedback and refund history
Keep records organized and ready.
7. Negotiate the Deal
Key deal points:
- Purchase price and structure (lump sum, earn-out, seller financing)
- Transition support (training, employee retention)
- Non-compete clauses
- Inventory value
- Escrow terms (usually held by a third party like Escrow.com)
8. Close the Sale
- Use a lawyer familiar with eCommerce M&A.
- Sign a purchase agreement.
- Transfer assets: domain, website, customer data, ad accounts, supplier contracts, etc.
- Release funds from escrow.
9. Support the Transition
- Provide training and handover documentation.
- Help maintain continuity with suppliers, VAs, and marketing agencies.
- Stick around for the agreed-upon transition period (usually 30–90 days).
