Table Of Contents
What Buying an E-commerce Business Means
When you buy an e-commerce business, you pay for a store that’s already running instead of starting from zero.
It already has products, a working website, a customer base, and usually some revenue.
This way, you’ll save yourself a lot of time and the hassle that comes with building an e-commerce store from the ground up.
You’re simply not guessing what you will sell. You’re stepping into something that’s already 100% working.
This sounds great, right?! But it can also be a risky process.
Remember, you’re betting that the business will keep working after you take it over.
And many things can go wrong along the way. (Keep reading this article to find out how).
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 Much Does An E-commerce Business Cost?
E-commerce stores are usually priced based on a multiple of their monthly net profit. The e-commerce multiples commonly range from 25× up to 60×, depending on the marketplace.
These multiple sets the sale price of any given online store by applying this simple formula:
Business value = earnings x the valuation multiple.
Higher multiples mean stable revenue, loyal customers, and diverse suppliers.
Lower multiples, on the other hand, apply to smaller stores or those that rely on a single supplier.
This pricing structure simply means that when buying an e-commerce store, you’ll be paying for profits you expect to get from your new acquisition over the next two to five years.
That said, it’s worth noting that marketplace data shows wide variation in the multiples as outlined below:
Empire Flippers reports an average sales multiple of 47.10× across all online business deals in 2023.
Flippa listings place e-commerce stores at roughly 1.5× -- 5.5× annual profit, which equates to about 18×–66× monthly profit.
BizBuySell research finds an average cash-flow multiple of 3.21× annual owner earnings. This translates to about a 26.8× multiple on monthly profit.
FE International sees multiples ranging from 3× up to 10× annual seller discretionary earnings (SDE), or roughly 36×–120× monthly profit.
Certain factors can affect the price of an e-commerce store.
For instance, stores with reliable suppliers may fetch higher prices as they’re proofed from supply chain disruption risk.
Stores with branded traffic and strong repeat customer rates can also command higher prices.
If a store is showing stable or rising profit trends, it is also likely to enjoy higher prices than one with flat or declining sales.
Niche competition and overall market size are additional factors that may affect the price of an e-commerce store.
How Long It Takes to Earn Your Money Back?
So, how fast can you earn back the money you spend on an e-commerce store?
GOOD NEWS: You can recover your investment within a year!
Data from Flippa shows that most e-commerce acquisitions recoup costs in about 3 to 12 months, with a median near 8 months.
And if you invest in high-margin stores with steady organic traffic, you can earn your money back in as few as 3 to 4 months.
For the lower-margin stores or those dependent on paid ads may stretch your payback toward the 12-month mark.
This is a sharp contrast to buying other types of websites…Some website buyers report much longer timelines.
For content sites or smaller stores, the payback periods can extend up to 2-4 years.
Keep in mind that seasonal businesses can speed or slow the recovery of your initial investment. A store tied to holiday demand might recoup quickly in Q4 but see slower results in off-peak months.
As a buyer, you can improve the payback period by cutting costs, diversifying traffic sources, and raising your average order value.
Carefully reviewing profit and loss statements, customer acquisition costs, and supplier terms can help you set realistic expectations and avoid surprises.
Why People Buy Instead of Starting An E-commerce Store From Scratch
Many entrepreneurs choose to buy an existing e-commerce store because it cuts the time to market.
It also helps save you the hard work of building everything from scratch.
Starting a new store means paying for a website, sourcing products, setting up payment systems, and running ads before you see any sales.
New stores often need six to eighteen months to break even, according to small business experts (source).
Nearly 20% of new businesses fail within their first two years, and 45% close within five years, per government data Source.
When you buy an existing business, you get a ready-made website with live traffic and an existing customer base, which delivers immediate cash flow.
As Harvard Business Review explains, you also inherit supplier relationships and operational processes, so you do not spend months testing vendors and fulfillment methods.
With an e-commerce acquisition, you can scale faster since you’re working with a proven store rather than starting from scratch.
Mind you, Flippa says that over 50% of e-commerce listings on major marketplaces find buyers within 30 days, highlighting strong demand for established ventures.
As an acquisition entrepreneur, you get to focus on growth strategies like improving marketing or adding products, instead of starting with a blank slate.
What Could Go Wrong When You Buy An E-commerce Business?
Buying an existing e-commerce store can be a smart move—but as we mentioned earlier, it’s NOT always 100% safe.
There are real risks involved, and it’s important to think through what could go wrong before you commit your money.
The most common issue is a drop in sales. A store might look great on paper, but after you take over, things can change.
The traffic may drop because the store relied on one big source, like Facebook ads, and those ads stopped working.
Or maybe the previous owner had personal connections with suppliers that you don’t.
Another risk is hidden problems in the numbers. Some sellers may show inflated profits by delaying expenses or pushing last-minute discounts to boost short-term revenue.
If you don’t check the profit and loss reports closely—or if you skip asking for verified data—you might overpay for a business that isn’t as strong as it looks.
Operational issues can also slow you down. You might run into problems with suppliers, shipping delays, or software that’s outdated or hard to manage.
If the store depends on the seller’s systems or team, losing them can hurt performance.
Customer trust is another factor. Buyers sometimes underestimate how loyal shoppers are to the original owner.
A store that had a personal brand or special voice might lose repeat business when someone new takes over.
Lastly, legal issues or account bans can pop up. If the store broke platform rules or had poor customer service, it might be at risk of being flagged by Shopify, Amazon, or payment processors like Stripe or PayPal.
That’s why doing your homework matters. Ask questions, get documents, and consider hiring someone with experience, e.g., an e-commerce broker, to help with due diligence.
A little work upfront can help you avoid big headaches later.
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.
What To Check Before You Buy An E-commerce Store
Before you buy an e-commerce business, you need to look under the hood.
A store might seem solid at first glance, but an in-depth review may tell a different story.
Here’s what smart buyers always check:
#1. Start with the financials
Ask for profit and loss statements from the past 12 to 24 months. Look for consistent monthly profits, not just a few good months.
Make sure expenses like ads, apps, software, and shipping are clearly listed.
If numbers don’t line up or seem too good to be true, Press the seller for more questions.
#2. Check where the traffic comes from
Stores that get most of their visitors from one place, like paid ads or Instagram, can be risky. If that source dries up, so does the income.
Look for a healthy mix of traffic, especially from search engines (SEO), email lists, or repeat customers.
#3. Look at the products and suppliers
Are the products trending or evergreen? Are they easy to ship? Talk to suppliers if you can.
Make sure you’ll be able to continue working with them and that prices won’t suddenly change after the sale.
#4. Test the website
Browse it like a customer. Is it fast? Easy to use? Do the checkout and mobile versions work smoothly?
A slow or clunky site can hurt sales, no matter how good the products are.
#5. Review customer feedback
Read through product reviews, site ratings, and comments on social media. Happy, returning customers are a great sign.
Too many complaints or refund requests should raise red flags.
#6. Also, ask about the seller’s involvement
How much time do they spend on the business each week? What tasks do they handle themselves?
If they’re doing a lot, you’ll need to either take over those tasks or hire help.
#7. Finally, ask why they’re selling
Not every sale is a red flag—people sell for lots of reasons.
But make sure the reason makes sense and matches what you see in the numbers.
Expert's Tip: Buying a store is like buying a car. You wouldn’t hand over money without checking the engine. The same idea applies here; do your research, ask for proof, and don’t rush.
The better you understand the business before you buy it, the better your chances of making it work.
What The Market Looks Like
Still not sure if now’s a good time to buy an e-commerce business?
Here’s something to think about:
Online shopping keeps growing. In 2023 alone, global e-commerce sales reached $5.8 trillion. And by 2025, they’re expected to hit $6.8 trillion. That’s a 17% jump in two years. (Source: Statista, 2023)
That’s a good sign!
It means more people are buying online. But it also means more people are selling online. So competition is quite high.
If you want to stand out, the store you buy needs to offer something better—whether that’s loyal customers, great products, or strong branding.
As a smart buyer, you should look for stores with real potential. This should be anything from solid reviews to repeat customers or untapped marketing channels.
After you buy, you should put in some work to make the store even better. You can achieve this by improving ads, cutting costs, or boosting conversions.
In other words, you don’t just buy and hope. You buy and build on what’s already working.
FAQs: Buying an E-commerce Business
Here are quick answers to some of the frequently asked questions about buying an e-commerce business:
Is an e-commerce business worth it?
Yes, an e-commerce business offers you flexibility, global reach, and lower startup costs than traditional retail. With online sales projected to exceed $8.1 trillion by 2027, it's a promising avenue for entrepreneurs.
What is the most successful e-commerce business?
Amazon leads globally, offering vast product selection and fast delivery. Other top performers include Alibaba, Shopify, and Etsy, each excelling in their niches through innovation and customer focus.
Is it hard to start an e-commerce business?
Starting an e-commerce business is easy with platforms like Shopify or Wix. However, building a profitable store requires time, effort, and strategic planning. Your success depends on product selection, marketing, and customer service.
Which e-commerce business is best?
The best e-commerce business depends on your interests and market demand. Niche markets, such as eco-friendly products or personalized items, often offer less competition and loyal customers.
Is an e-commerce business profitable?
Yes, an e-commerce business can be profitable with the right strategy. Profitability depends on factors like product margins, marketing efficiency, and customer retention. You can achieve significant profits by optimizing these areas.
So, Is It Worth It?
Buying an e-commerce business can be worth it if you buy the right one, at the right price, and with the right plan. It saves you time compared to starting from scratch. You get a working system and revenue from day one. If the store is stable, you can recover your cost in about a year. But the risk is real. Businesses can fail. Costs can rise. Customers can leave. You need to understand what you're buying. Treat it like any big investment. Do your homework. Ask questions. Run the numbers. And if it checks out, it might be a smart way to grow.
Ready to buy your first e-commerce store—or your next one? We can help you buy, manage, and grow your e-commerce business the smart way. Our team handles everything—from finding the right store to scaling it for a strong exit. You stay focused on your goals while we do the heavy lifting. Whether you’re new to this game or building your portfolio, we’ll help you get the best deals and set you up for real success. Reach out today and let’s find your next winning store—together.
A Done-For-You E-commerce Business
Discover how we Build, Launch, and Scale a 6-figure/month Business for You
Learn more
