Why Buy A Failing E-commerce Store?
Buying an existing e-commerce store can be a major shortcut compared to building one from scratch.
It’s like moving into a fully furnished apartment—you skip the time-consuming tasks like building a website, sourcing suppliers, or choosing a product niche.
Much of the groundwork has already been done.
However, there’s a catch: the store might be failing for a reason. That reason could be:
Poor marketing
Bad customer service
Unprofitable product
Low demand
A saturated market
In these cases, the problems won’t just fix themselves—they may require a complete pivot in strategy, product line, or operations.
That said, buying a struggling store at a bargain price can present you with a unique opportunity.
According to MicroAcquire, many e-commerce stores are listed for 1x to 2x their annual net profit. But failing stores? These often sell for much less, sometimes just the value of their inventory.
If you possess skills in marketing, operations, or customer experience, and you're willing to diagnose and solve core issues, you might be able to transform a failing store into a profitable business faster than starting from zero.
The key is to know what you’re getting into and to have a plan for turning weaknesses into wins.
Here's why buying a struggling online store can a profitable investment:
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.
Where To Find Failing Stores for Sale
You can find struggling e-commerce stores on major online business or sale platforms like Flippa, Empire Flippers, Acquire, and Exchange Marketplace (run by Shopify).
These platforms list stores for sale but will not specify which of these listings are struggling.
As such, it’s upon you to dig deeper into their listings, and you’ll discover that many of them are underperforming.
You can also find sellers in Reddit forums or Facebook groups where storeowners hang out.
When looking for a failing store, we suggest looking for signs that a store is failing but not dead. These signs might include:
A drop in sales
Poor reviews
A high bounce rate
But don’t just focus on the bad side. We also advise you to look for signs of life, such as steady traffic, active suppliers, or a working checkout system.
These signs show that the store still has potential and isn’t beyond saving.
What To Check Before You Buy
Before you buy anything, you need to conduct in-depth due diligence.
This simply means checking the store’s financials, systems, and reputation.
You want to make sure the problems the store is experiencing are fixable and that the seller is being honest.
Start by going through the revenue and expenses. Ask for the last 12 months of sales data, advertising costs, and any software subscriptions.
You can use tools like Google Analytics or Shopify Analytics to help you check where the traffic comes from.
If you find out that most of the traffic is paid, you might be spending a lot just to keep the lights on.
If it’s organic, that’s a good sign.
Next, you’d want to review the products and suppliers. Are the products still in demand? Are the suppliers reliable?
You definitely don’t want to buy a store that sells fidget spinners in 2025.
Also, check the store’s online reputation. Look at customer reviews, chargeback history, and social media comments. A bad reputation can take time to fix.
Finally, check the legal stuff. Make sure the seller owns the brand, domain, and all digital assets.
Ask if there are any unpaid taxes, lawsuits, or disputes with suppliers.
Read This Next: 5-Step E-commerce Due Diligence Checklist (A 2025 Guide)
Read This Next: Best Legal Advice For Buying An E-commerce Business (2025 Guide)
How To Turn the Failing Store Around
Once you acquire the e-commerce store, it’s time to fix the problems. How exactly to do that? Start with the biggest issues below;
Fix the website design
If the website looks outdated or confusing, fix the design right away.
Give it a clean layout, quality product photos, and clear, easy-to-use buttons.
Data from the Baymard Institute showed that 70.19% of users abandon carts.
Note that 15% of these users abandoned their carts because of the website showing errors or crashing, while 18% mentioned the process being too long/complicated. (Source).
So even simple changes like better navigation or a faster checkout can help you raise sales.
Next, you’ll need to work on product pages
Make sure you use high-quality photos, clear product descriptions, and a pricing that makes sense.
You can use e-commerce analytics tools like Hotjar to help you watch how people move through the site.
This can show where your clients are getting stuck and make the necessary adjustments.
Then, focus on the marketing
If the store were only using paid ads to market its products/services, you should try to build an email list or start content marketing.
Email marketing has one of the highest returns in e-commerce. According to a report from Campaign Monitor, every dollar spent on email brings back 4400% ROI (return on investment), which translates to $44 on average.
You should also review customer service
If people are leaving bad reviews, you should try to figure out why.
Respond to the complaints and fix what went wrong.
Offering fast replies and clear return policies can help rebuild trust with your customers.
Another key part is inventory and shipping
Make sure all your products are in stock and shipped on time.
If you can’t keep promises, then you should forget about your customers coming back.
If possible, use software to help you track inventory and automate shipping updates.
Expert Tip: If you implement these key changes, you’ll definitely start to see improvements in your store. As your sales improve, we advise you to start testing small changes. Try a new ad copy, update your product selection, or even adjust prices. Watch what works and repeat it.
When To Scale (and When to Sell)
Once your store is running smoothly and sales are up, you have two choices:
Option #1: You can keep running it and grow the brand, or
Option #2: You can sell it for a profit.
If you choose the first option, then you may want to explore various growth opportunities.
For instance, you may want to look into new sales channels like Amazon or TikTok Shop.
You can also launch new products or open a wholesale line.
Use profits from your store to hire help so you can focus on strategy.
If you go with the second option, we advise you to wait until your e-commerce business shows a steady profit for at least six months.
This makes it more attractive to buyers.
You can list it on the same platforms where you found it.
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.
Final Thoughts
Buying a failing e-commerce store isn’t always a risky move. With the right skills and a clear plan, it can be a smart way to start or grow an online business. You skip the setup phase and get straight to improving what’s broken. The key here is to know what to look for, fix the right things first, and stay focused on customer value.
If you enjoy problem-solving and have some business sense, this might be a great path for you. You will not win every time, but when it works, it can be both fun and profitable.
Looking to acquire an e-commerce business but not sure where to start? Our Acquisition Partnership Program is designed to guide you through every step of the process. We help you identify high-potential opportunities, conduct thorough due diligence on your behalf, and close the deal with confidence. But it doesn’t stop there—post-acquisition, our team works with you to scale your store 2–4x, maximizing your return on investment, whether you plan to hold or sell. If you're ready to acquire and grow with expert support by your side, click here to learn exactly how the program works.
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