Table Of Contents
Step 1. Defining Your Acquisition Goal: The Foundation of Any E-Commerce Deal
Before jumping into more intimate details of the acquisition process, we ALWAYS advise you to start by defining your acquisition goals.
Having this clarity from the word go is crucial as it will dictate the type of business you pursue and the amount you’re willing to invest.
That said, there are THREE main paths to follow here:
Path 1: The Stability Path / Conventional Acquisition Path:
Is your goal to acquire an online business with consistent and steady performance in terms of revenue and profit?
If yes, then we advise you to go for businesses that have demonstrated stable earnings over a period of 3–5 years.
These businesses often come with lower risks, established customer bases, customer acquisition strategies fully optimized, and operational systems already in place.
A perfect example of this type of business is GainBox, a brand that has been operational for over 11 years and consistently generates USD $549,529 in annual revenue with a 40% profit margin.
Businesses like this tend to focus on evergreen products like health supplements or baby products, ensuring they perform regardless of market fluctuations or seasonality.
Path 2: The Trend-Driven Path:
The trend-driven path is the exact opposite of the conventional path.
Here, you are targeting businesses that are riding on the coattails of a trend—such as a viral fitness gadget or a popular supplement.
These businesses often experience explosive revenue growth, but once the trend dies down, they may suffer losses.
While this path offers you the potential for higher rewards and scalability, it has a major downside—it carries higher risks.
In other words, trends fade. The audience may get bored once the trend is over and marketing and operations may not be optimized.
A good example of this type of business is a brand like FunPunch, which generated nearly $1 million in 12 months with 80% of its revenue stemming from viral content.
HOWEVER, despite the explosive revenue, this trend-driven business has recently seen a decline in sales, which presents both a risk and an opportunity for a savvy buyer to capitalize on.
Path 3: The Hybrid Approach:
What if you could combine both paths above? Well, the product would be the Hybrid Approach—which is no doubt the best path of all.
Here’s why:
A hybrid approach gives you a mix of both stability and potential for explosive growth, making it the most ideal.
In this case, you want to look for businesses that are experiencing upward revenue trends but have solid foundational elements like a repeat customer base, effective marketing strategies, and an engaged audience.
The businesses balance risk and reward and can offer more predictability in growth.
Overall, defining your goals upfront is a SECRET that will save you time, energy, and give you a more focused approach in your search for acquisitions.
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.
Step 2. Sourcing Deals: Where To Find E-Commerce Businesses for Sale
Once you've defined your goals, the next step is sourcing deals. So, where do you find established online stores for sale?
Online Marketplaces
Here are some of the most common online marketplaces where you can find e-commerce stores for sale:
Flippa: Perfect for smaller e-commerce businesses and startups. However, some listings on Flippa may be pump-and-dump stores with inflated metrics. Always look for businesses with at least 12 months of performance data.
Empire Flippers: Known for thorough vetting, Empire Flippers provides more reliable listings, though competition is higher. You’ll need to act fast as businesses often sell quickly.
Brokers: Working with a broker can help streamline your search by curating businesses based on your criteria. Keep in mind that brokers charge fees, which can eat into your budget, so ensure they specialize in e-commerce and have a good reputation.
Specialized Platforms
Besides the online marketplaces above, you may also consider these specialized platforms:
Trend Hijacking: You can check our section of online businesses for sale, including carefully vetted, profitable e-commerce stores for sale.
FE International: Focuses on larger, more established e-commerce businesses with a strong vetting process.
Acquire.com: Best for smaller SaaS and e-commerce businesses, with a focus on direct deals.
Website Closers: Specializes in larger e-commerce businesses and Amazon FBA brands.
BusinessExits: Premium brokerage focusing on e-commerce and tech businesses.
BizBuySell: General business marketplace, but includes e-commerce businesses.
Alternative Options:
You may also consider these alternative options for finding online stores on sale:
LinkedIn & Facebook Groups: Join groups like E-commerce Entrepreneurs” and “Shopify Exchange” to find off-market deals.
Reddit: Subreddits like r/Entrepreneur and r/Flippa often feature e-commerce opportunities.
Direct Outreach: Reach out to business owners directly in niches you're interested in—many sellers don’t list publicly.
DON’T forget you can also get off-market deals! You simply subscribe to premium services or build relationships with sellers directly.
Here, you may come across hidden gems that never hit the public market.
Step 3. Red Flags to Watch Out For: Avoiding “Pump-and-Dump Stores”
Not all e-commerce businesses are created equal. Many sellers attempt to inflate their metrics, and some businesses are simply unsustainable.
Be on the lookout for these red flags:
Heavy Ad dependence: If 90% of a business’s traffic is driven by paid ads, ask yourself: What happens if ad costs rise or ads stop working?
Dropshipping models: While not inherently bad, dropshipping businesses with poor customer service, long shipping times, and low margins often struggle to retain customers. Avoid businesses with a bad reputation and weak branding.
Revenue spikes: If a business has one or two months of unusually high revenue, dig deeper. Did this spike come from a seasonal trend, a viral marketing campaign, or other unsustainable sources?
A suitable, sustainable online business should have diversified traffic sources, repeat customers, and well-established operational systems.
Don’t be swayed by a flashy revenue chart without verifying the business’s foundation.
Step 4. Due Diligence: Protecting Your Investment
This is where most first-time buyers falter. Thorough due diligence is vital to ensure you’re not getting scammed or overpaying for an underperforming business.
Here’s what you should review:
Financials: Examine profit margins, customer acquisition costs, ad spend, and operational expenses. Consistent growth over time is key; avoid businesses with fluctuating revenues unless you understand why.
Traffic sources: Access traffic analytics (e.g., Google Analytics or Shopify dashboard). Organic traffic is a positive sign, while reliance on paid ads or viral spikes is a red flag.
Supplier relationships: Check the reliability of suppliers. Are they dependable, and do you have contracts or agreements in place?
Customer reviews: Read customer reviews on multiple platforms. Negative feedback, product quality issues, or customer service complaints should not be overlooked.
Conducting thorough due diligence not only helps you protect yourself but also gives you leverage during negotiations.
If you uncover issues like weak supplier relationships or poor customer feedback, you can use this information to negotiate a lower price.
Step 5. Negotiation Strategies: Closing the Deal on Your Terms
Once due diligence is complete, it's now time to negotiate. Be sure to arm yourself with these three key tactics to help secure a favorable deal:
1. Highlight Weaknesses
Use the information you gathered during due diligence to justify a lower offer. For example, if you discover weak traffic sources or customer service issues, bring them up as negotiating points.
2. Stay Patient
Don’t rush into a deal. Sellers often lower their prices if a listing sits on the market for a while. Playing the game of patience can lead to significant savings.
3. Consider Earn-Outs
Rather than paying the full price upfront, negotiate an earn-out structure, where part of the payment is based on the business’s future performance. This reduces your risk and ensures you’re not overpaying.
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.
Step 6. Transition and Scaling: Setting the Stage for Success
Acquiring a business is just the first step. The real work begins during the transition and scaling phases of your new acquisition.
Here's how to approach it:
Hire or Outsource Key Roles: If the business doesn’t come with a team, be prepared to hire or outsource critical functions like customer support, marketing, and operations.
Step 7. Planning Your Exit: The Endgame
Always keep your exit strategy in mind. A business that has been operational for a while with consistent growth and solid brand equity will attract higher multiples when you sell it.
A well-executed acquisition can result in an excellent return on investment.
For example, one of TrendHijacking’s recent acquisitions generated $1.7 million in revenue in less than a year with a 19% profit margin, ultimately selling for $367,000.
By focusing on steady growth and building brand equity, you can make your business more attractive to future buyers.
Check out this video for an in-depth visual guide on how to acquire an e-commerce business for sale:
Conclusion: Acquiring E-Commerce Businesses with Confidence
Acquiring an e-commerce business can be life-changing, but only if you approach it strategically.
Define your acquisition goals, source the right deals, conduct thorough due diligence, and negotiate smartly. These crucial steps will help increase your chances of acquiring a business that will deliver both short-term rewards and long-term success.
NOW…if you’re ready to dive deeper into e-commerce acquisitions, TrendHijacking.com offers you expert services to guide you through every step of the acquisition process—ensuring you acquire businesses with confidence.
Act now—check out our acquisition services for more in-depth details on how we can get you started on acquiring a profitable acquisition today
A Done-For-You E-commerce Business
Discover how we Build, Launch, and Scale a 6-figure/month Business for You
Learn more
