Selling an eCommerce business can either be a great idea or a waste of time and potential depending on how you go about it. It is often not as simple as many people imagine, and if you don't really understand how to sell a website and what makes a website valuable, you're bound to make mistakes. This is why you need to do some real research before you go through with your decision and know exactly what you'll need to do to get the best deal possible. Here are some of the things you'll need to consider before selling an eCommerce business.
One of the very first things you should think about before selling an eCommerce website is how old the site is. Even if the site is getting some sales, people will be reluctant to buy it if it’s really new. If your site is under one year old, you might want to wait until it reaches that mark before you sell. This will show people that you have a sustainable business model and that it’s not just a fluke.
You should also think about diversifying your revenue streams and sources of traffic before you put your website up for sale. Increasing revenue streams will make your site look much more attractive to buyers and will boost your earnings. The easiest way to diversify your income is to release a new product. If you have always had an idea for a product that will fit within your brand, now would be a great time to launch one.
You should also consider setting up a newsletter if you don’t have one yet. If you want to get lots of subscribers fast, all you have to do is make people feel like they’re joining a special club and sweeten the deal up by offering an instant discount. A site with a subscribers list will be much more valuable than one without as prospective buyers will know that they can capitalize on that list whenever they want.
You should also see if you can ramp up your SEO efforts if possible. Releasing content on the right channels, increasing brand mentions, and improving on-page SEO are musts before you put your site up for sale. SEO is the most attractive form of traffic for buyers because of how long-lasting it is. So, do everything you can to rank better for important keywords and consider getting help from a reputable agency if it's worth it.
You cannot expect to sell an eCommerce business if you don't have standardized, clean, and understandable financial statements. You might want to use a tool like Xero and QuickBooks to produce income statements and balance sheets, but if you've been neglecting this part of the business, you might want to hire an accountant to get everything for you.
You also have to think of what route you’re going to take to sell your website. If you’re trying to sell a Shopify site or Amazon FBA site, then we strongly suggest that you think about hiring a broker. These websites can often be difficult to value, and if you are prepping for a quick sale, going with a broker is usually the best way to go. One of the biggest advantages a broker will have is that they will be able to instantly contact people in their network who they know have bought or are actively buying websites like yours. You could even choose a broker that specializes in your type of website and get an almost guaranteed sale if it has substantial value. You should speak to a few brokers today if you’ve never considered the idea and see what they could do for you.
Prospective buyers might get scared if they don’t get enough information on how your business operates. Standard operating procedures and practices should be written down before you even think of selling. Prospective buyers want to buy your website and hit the ground running to get an ROI as soon as possible. So, you'll have to disclose information on things like customer service, relationships with suppliers, and inventory management before you hand over your business. If you don't have that information down or it's not clear enough, then people will either recant their offers or ask for a bargain on your valuation.
These are all things you have to look at before you sell your eCommerce site. Everyone would like to get the most they can for their business. So, make sure that you follow our tips and take the time to build value if you feel that your site hasn't isn't at its peak yet.