Table Of Contents
Why You Should Buy An E-commerce Business Instead of Starting One?
Starting an e-commerce business from zero requires a lot of hard work and time.
Think about it…You need a product idea. You must find suppliers. You build a website. You set up payment processing. You figure out shipping.
Then, you face the massive challenge of attracting customers.
The painful part? Most new stores have been shown to fail…
Latest reports indicate that over 50% of small online businesses struggle to survive past five years.
Buying a business that already exists changes the game. How? When you buy an established business, you skip the hardest, riskiest part: the launch phase.
You get to own a website that works. You get existing customers. You get real sales data. You get suppliers already in place.
This existing foundation gives you a huge head start. As we can all agree, a business with at least two years of profitable history generally means it has proven the model works.
In other words, you are buying proof!
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.
How To Find The Right First E-commerce Business To Buy (Keep it Simple!)
If you decide that you want to acquire an already established e-commerce brand, then your first goal is to find a business you can actually handle.
As a beginner in this field, we strongly suggest that you keep things simple here.
Forget complex operations for now and look at a beginner-friendly type of business.
Here are a few suggestions to get you started:
Get A Store With Simple Product: These businesses sell straightforward physical goods. Avoid stores needing complex assembly, heavy customization, or strict regulatory compliance (like supplements or medical devices). Look for stores selling things like basic home goods, simple accessories, or hobby items. Fewer product variations are better.
Buy A Dropshipping Store: In dropshipping, you sell products, but a supplier holds the inventory and ships orders. This eliminates the need for you to manage stock. However, you need to be cautious as many dropshipping stores have thin profits and face stiff competition. Only consider stores with a proven, reliable supplier relationship and decent profit margins after all costs. Check customer reviews for shipping times (slow shipping kills dropshipping stores).
Buy E-commerce Store Selling Digital Products or Simple Services: These involve selling things like eBooks, online courses, design templates, or simple subscription services (like basic monthly content). No physical inventory means fewer moving parts. The challenge is often marketing and keeping content fresh.
Pro Tip: When hunting for your first e-commerce business to acquire, we advise you to keep off any businesses that require deep technical knowledge (complex SaaS platforms), heavy customer service demands (like high-touch consulting), or rapid inventory turnover (like fresh food). Stick to something easily manageable.
How To Evaluate E-commerce Business For Sale Listings
When you start searching for an online store to buy, you will come across listings on marketplaces like Flippa, BizBuySell, or through specialized brokers like Flippa and Empire Flippers.
Since this is your first time, you may want to partner with brokers or acquisition experts, as they often vet listings better (however, they may charge you some fees).
While these business listings may sound amazing and appealing, you need to take your time to look at the facts to ensure you don’t fall for scams.
Here are some crucial areas you MUST check before you acquire an e-commerce business:
Check the Financials
This is non-negotiable. You need to ask the seller for at least two years of profit and loss statements (P&Ls) and bank statements. Look for consistent revenue and, crucially, profit; revenue means nothing if costs eat it all up.
A Shopify store making $20,000 per month sounds great, but if ads cost $18,000, that's a problem.
Calculate the "Seller's Discretionary Earnings" (SDE). SDE gives you a clear picture of the true profit the owner makes. It's calculated as follows:
Total Revenue - Cost of Goods Sold - Operating Expenses + Owner's Salary/Benefits.
This number (SDE) tells you what money is likely left for you. Use the SDE figure as your main value guide.
Understand Traffic Sources
Next, you want to check where the customers come from…
Is it mostly paid ads (like Facebook or Google)? Organic search? Social media? Email marketing?
Relying on paid ads is risky and expensive.
If the business is getting significant traffic from free sources (like Google search results), it’s usually more valuable and stable.
Use tools like Semrush or SimilarWeb (ask the seller for access or reports) to help you verify a store’s traffic claims.
Look for steady or growing traffic trends.
Look at Products and Suppliers
What exactly does the store sell? How many different products are there?
Who are the suppliers? Are there contracts? How reliable are they? Are profit margins consistent?
A store relying on one single product or one supplier is risky.
Check if the seller owns any unique branding or trademarks – this adds value.
Check Operations
How much time does the owner spend on the store weekly? What tasks are involved (packing orders, customer service, marketing)
Does the store use any special software?
Your goal here is a business that doesn't require 80-hour weeks unless you want that. Clear, documented processes are a big plus.
Spot Red Flags
If you’re not careful when evaluating an e-commerce business for sale, you could easily skip the red flags and end up with a liability instead of a money-making investment.
From our years of experience conducting due diligence for different stores, we always advise you to look out for the following top RED flags:
The numbers don't add up
The seller avoids your questions
The traffic has dropped sharply recently
Customer reviews are bad
The business model seems shady
Profit margins seem unrealistically high.
Trust your gut. ALWAYS. If something feels off, walk away.
The Work You Actually Need To Do After Acquiring An E-commerce Brand
Buying the e-commerce business is just the start. Even a "simple" store needs work.
Here's what you, the new owner, will need to do:
Work On Customer Service: This involves answering emails, solving problems, and processing returns. This takes time and patience. Good service keeps customers coming back.
Order Fulfillment: This involves getting products to customers. This might mean packing orders yourself, coordinating with a dropshipper, or managing a fulfillment center. Speed and accuracy matter.
Marketing: You need to keep attracting new buyers to your new store. This could involve running ads, posting on social media, sending emails, or trying to get better search engine rankings. Marketing costs money and requires learning.
Basic Website Management: Consider updating product listings, checking for website errors, and maybe tweaking simple website elements. You don't need to be a coder, but you need to learn your platform (like Shopify or WooCommerce).
Managing Money: You’ll also need to start tracking your income and expenses, paying bills, and understanding your profit. Simple bookkeeping is essential.
Supplier Communication: Above all, you’ll need to continue ordering stock (if applicable), checking on shipments, and resolving supplier issues.
The GOOD news is that all this is as simple as it sounds. In other words, you learn this by doing. Start simple. Focus on not breaking what already works. Then, slowly improve.
The Buying Process For An Established E-commerce Business: Step by Step
Here are the key steps to follow to successfully purchase a profitable e-commerce business:
Step 1. Search and Shortlist: Use marketplaces or brokers to find a suitable business to acquire. Keep in mind key considerations like your budget, niche interest (if any), and business type (simple product, dropshipping, digital). Creating a list of potentials will make the process easier for you.
Step 2. Initial Review: Read the listings carefully. Look at the financial summaries and key metrics provided. Eliminate obvious mismatches.
Step 3. Sign an NDA and Get Details: If interested, you'll sign a Non-Disclosure Agreement (NDA). Then, the seller or broker provides you with detailed info: full financials, traffic reports, supplier lists, operational guides, etc.
Step 4. Deep Dive (Due Diligence): This is your investigation phase. Scrutinize the financial documents. Verify traffic data. Check supplier references. Read customer reviews. Understand the legal structure (are you buying the company assets or the whole company?). Ask all your questions. Hire an accountant familiar with online businesses to review the finances. Consider a lawyer to review the contract.
Step 5. Make an Offer: Based on your due diligence and the SDE multiple common for that type/size of business, make a formal offer (Letter of Intent - LOI). This outlines price, payment terms (all cash? seller financing?), and key conditions.
Step 6. Negotiate and Agree: The seller might counter your offer. Negotiate until you both agree on price and terms.
Step 7. Finalize the Contract: Lawyers draft the final Asset Purchase Agreement (APA). This legally transfers ownership of the business assets to you. Ensure it clearly lists everything included (website, inventory, customer lists, social media accounts, supplier contracts).
Step 8. Secure Payment and Transfer: Use a secure "escrow" service. You send the money to escrow. The seller transfers the business assets to you. Once you confirm everything is as agreed, escrow releases the funds to the seller.
Step 9. Transition and Takeover: Work with the seller for a handover period (1-4 weeks is common). Get logins, understand daily tasks, and meet key suppliers. Start running the business!
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.
Common Mistakes Beginners Make When Buying E-commerce Businesses (And How To Avoid Them)
Here are the most common mistakes to avoid when buying an e-commerce business:
Skipping Due Diligence: This is the biggest error. Never buy based on a listing alone. Verify everything. If you don't understand the financials, get help.
Overpaying: Get caught up in excitement. Stick to valuations based on SDE and comparable sales. Don't pay for potential; pay for proven performance.
Underestimating the Work: An e-commerce store does not translate to passive income, especially at first. Be honest about the time commitment.
Changing Too Much, Too Fast: Don't overhaul the website or marketing immediately. First, understand why things are done a certain way. Make small, measured changes.
Ignoring Customer Service: Bad reviews spread fast online. Prioritize responding to customers quickly and helpfully.
Not Having Enough Cash: You need money beyond the purchase price for operating costs, marketing, unexpected expenses, and your own living expenses while you learn. Have a buffer.
You Can Do This (Really)
Buying your first e-commerce business with no experience is absolutely possible. It requires careful research, realistic expectations, and a willingness to learn. Focus on finding a simple, profitable business with understandable operations. Do your homework thoroughly. Plan for the work involved. Once you transfer ownership, start by maintaining what works, then gradually make it better.
If you're looking to buy your first e-commerce business, our Acquisition Partnership can help. We'll guide you through finding the right deals, handling due diligence, negotiating terms, and making the handover smooth. After you buy the business, we’ll also support you in running and growing it, helping you scale 2–4x so you can sell it later for the best possible return.
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