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).
