Table Of Contents
1. Verify the Store’s Revenue and Profitability
We’ve just mentioned that one of the biggest benefits of buying an existing e-commerce store is that it comes with established revenue.
As such, the first thing you need to confirm is whether the store is actually making money.
Keep in mind that a seller may show you impressive revenue numbers, but that doesn’t always mean the business is profitable.
What to Look For:
Revenue vs. profit: Check if the store is generating consistent profits or just high sales with thin margins.
Expense Breakdown: Analyze key costs such as advertising, product sourcing, platform fees, and operational expenses.
Financial proof: Request access to Shopify analytics, profit and loss statements, and bank transaction records to verify claims.
RED FLAGS: If the seller hesitates to provide you with the financial documentation, it’s a sign the business may not be as profitable as advertised.
We Help You Buy / Build, Manage and Scale E-commerce Brands for an EXIT
E-commerce Simplified for Busy Individuals – We handle the buying, building, and scaling, so you can focus on what matters.
Growth-Focused Strategies – From sourcing to marketing, we drive growth and prepare you for a profitable exit.
Expertly Managed Exits – We build a high-value brand designed for a Lucrative exit.
2. Analyze Traffic Sources and Customer Acquisition
A Shopify store’s success heavily depends on where its traffic comes from and how it acquires customers.
That said, not all traffic is equal—some sources are more sustainable and profitable than others.
What to Look For:
Traffic breakdown: Check if visitors come from organic search, paid ads, social media, or email marketing.
Customer acquisition cost (CAC): Determine how much it costs to acquire each customer and whether the store relies too much on expensive paid ads.
SEO & Organic Traffic: A store with strong organic traffic from Google is more valuable than one dependent on short-term ad campaigns.
RED FLAGS: If most of the store traffic comes from paid ads with no organic audience, scaling may require high ad spend.
3. Evaluate the Store’s Niche and Market Demand
Not all Shopify niches are created equal—some have long-term growth potential, while others are short-lived trends.
Before buying a store, ensure its niche is profitable and has consistent demand.
What to Look For:
Market trends: Use tools like Google Trends and industry reports to check the niche trend; is it growing or declining?
Competition level: Too much competition can make scaling difficult. Too little competition may indicate low demand.
Target audience: Understand who the customers are, their buying habits, and whether they make repeat purchases.
RED FLAGS: If the niche is built around a temporary trend (e.g., fidget spinners), the store’s success may not last.
4. Assess Supplier Relationships and Product Sourcing
A Shopify store is only as strong as its supply chain.
Before purchasing that store, make sure it has reliable product sourcing and strong supplier relationships.
What to Look For:
Supplier agreements: Confirm whether the seller has long-term contracts with suppliers or if they’re using unreliable sources.
Product quality & fulfillment: Order sample products to check quality and shipping times.
Dropshipping vs. inventory: Determine if the store relies on dropshipping or holds inventory, as this impacts costs and logistics.
RED FLAGS: If the seller cannot share with you supplier contacts—for no good reason— or if the business relies on a single supplier with no backup options, it’s a risky investment.
5. Evaluate the Store’s Branding and Reputation
A strong brand fosters customer loyalty and boosts the long-term value of a Shopify store.
It’s therefore important to evaluate how well the brand connects with its audience and its overall reputation.
What to Look For:
Social media presence: Assess engagement on platforms like Instagram, Facebook, and TikTok. A loyal, active following signals trust and brand strength.
Customer reviews and ratings: Examine reviews on the store’s website, Trustpilot, or third-party sites to gauge customer satisfaction.
Email list & community: A robust, engaged email list is valuable, as it can drive sales without the need for paid advertising.
RED FLAGS: Frequent negative reviews, a weak brand identity, or low customer engagement can indicate difficulties in maintaining customer retention post-sale.
We Help You Buy / Build, Manage and Scale E-commerce Brands for an EXIT
E-commerce Simplified for Busy Individuals – We handle the buying, building, and scaling, so you can focus on what matters.
Growth-Focused Strategies – From sourcing to marketing, we drive growth and prepare you for a profitable exit.
Expertly Managed Exits – We build a high-value brand designed for a Lucrative exit.
6. Check Refund and Chargeback Rates
The reliability of a store’s suppliers and inventory management processes can make or break its success.
Before closing the deal, ensure that the store’s supply chain is stable and scalable.
What to Look For:
Supplier agreements: Confirm if the current owner has long-term contracts or special pricing deals with suppliers.
Product quality & fulfillment: Order samples to assess quality and fulfillment speed. Slow or unreliable shipping can harm customer satisfaction.
Inventory management system: Check if the business uses an efficient system, such as Shopify’s built-in inventory tracker or third-party tools.
7. Evaluate Legal & Financial Records
Before finalizing your purchase, it's crucial to review the store’s legal and financial records to avoid unexpected liabilities.
What to Look For:
Business structure and ownership: Confirm whether the business is registered as a sole proprietorship, LLC, or other entity.
Tax and compliance records: Ensure the store complies with VAT, sales tax, and other regulations, especially if it sells internationally.
Outstanding debts or liabilities: Check for unpaid invoices, chargebacks, or disputes that could become your responsibility.
RED FLAGS: If the seller hesitates to provide financial statements or legal documents, it may indicate hidden risks. Always consult a legal expert before committing.
8. Negotiate the Price and Drafting a Secure Purchase Agreement
Once you’ve completed your due diligence, you should now focus on price negotiation and purchase agreement. These are crucial to ensuring a smooth transition.
What to Look For:
Handover period: Negotiate a transition period with the seller, during which they will provide you with support and training.
Access to assets: Ensure you get all the necessary login credentials, supplier contacts, branding files, marketing materials, and other crucial assets related to the store you buy
Customer and order management: Familiarize yourself with the ongoing customer inquiries, order fulfillment processes, and refund policies.
RED FLAGS: If the seller is unwilling to assist after the sale, you may struggle with operations. A well-documented transition plan is critical for a smooth handover.
Frequently Asked Questions About Buying a Shopify Store:
Got questions about buying a Shopify store?
Here are the answers to some of the most frequently asked questions to help you make an informed decision:
Is buying a Shopify store a good investment?
It depends on factors like profitability, sustainability, and conducting thorough due diligence to ensure the store has growth potential and no hidden issues.
Where can I find Shopify stores for sale?
You can explore platforms like the Shopify Exchange Marketplace, Flippa, Empire Flippers, and FE International for reliable listings of Shopify stores for sale. You can also check our section of the carefully selected e-commerce businesses for sale.
How much should I expect to pay for a Shopify store?
Prices of Shopify stores vary based on factors such as revenue, niche, and store age. Generally, it ranges from $1,000 to $100,000+ or even higher for more established and profitable stores.
What risks should I watch out for?
Key risks of acquiring an e-commerce store include fake traffic, unreliable suppliers, and poor customer service history. Conducting a thorough due diligence process can help you identify these risks beforehand.
Can I migrate a purchased Shopify store to another platform?
Yes, it's possible to migrate a Shopify store to another platform. However, the migration may require development work, as well as adjustments to SEO settings, themes, and integrations to ensure a seamless transition.
Conclusion
Knowing how to buy a Shopify store will ensure you experience a smooth entry into the e-commerce world. Thorough due diligence will help you secure a store with strong growth potential.
We advise you to carefully evaluate key factors such as the store’s revenue, traffic, niche potential, supplier reliability, SEO, and operational risks. These will help you make a more informed decision and avoid costly mistakes.
Not sure where to start when buying a Shopify store? Our Acquisition Program makes the process straightforward and stress-free.
Our team of experts will help you find the best deals, handle due diligence and negotiations, operate, and scale the store for you. When the time is right, we’ll guide you through an exit strategy to achieve up to 10x the store's value-maximizing your returns.
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