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Selling ECommerce Businesses: Tips For Online Website Business Owners

Selling eCommerce Businesses: Tips For Online Website Business Owners

Selling An Online eCommerce Business

In an advanced, technologically savvy era, virtually anything can be done, purchased or explored via cyberspace. From paying bills, to buying clothing and groceries and having them delivered straight to the front door, large corporations and small businesses alike have made lives easier by going digital and allowing people to run errands and accomplish their daily tasks without leaving their homes.

The industry of eCommerce businesses is booming, with the market more than doubling from 2014 to 2015. With a hot market, owners can look forward to enjoying a price in the range of 4 to 6 times their adjusted net income, understanding that the more money the business makes, the higher the multiple will be. When preparing to sell an e-commerce business, an owner must take the time, approximately 3 or so months, to prepare their eCommerce online portal for sale.

During this period of time, a seller should compile all financial records, including their profit and loss income statement from the previous 3 years, (4 or more years for larger e-commerce businesses), and a document that details everything from the market that they serve, to staffing, industry trends, customer base, and the products/services that the business sells/provides online.

The more information that is gathered and included in this will not only attract potential eCommerce website buyers, but also give them a clear picture of what to expect when acquiring the business, therefore speeding up the selling and training processes with the buyer.

Potential business buyers who are interested in viewing this information and are seriously inquiring about an e-commerce business should first sign a non-disclosure agreement to learn more about the business.

As a seller, it is highly encouraged to obtain representation by an eCommerce business broker professional to help you compile all necessary documents that will help you sell your eCommerce company. By having a business broker intermediary represent you, this will drastically decrease the amount of time it will take you to be prepared to sell your online business and will save you a lot of time and stress along the way.

An eCommerce broker specialist will typically charge between 10-12 percent of the selling price of your company, but that shouldn't discourage you from using one because they will help you secure a higher selling price and save you months of time and effort.

Over 50 percent of all eCommerce businesses sell within the first 90 days of being posted, and that is most achievable by using a team of business professionals to help you every step of the way.

More Information About Buying & Selling eCommerce Online Businesses:

View All eCommerce Businesses For Sale & Wanted To Buy Postings

eCommerce Business Brokers & Intermediaries To Assist You

Financing Assistance Advisors To Help You Buy eCommerce Companies

Articles, Blog Posts, Events Concerning eCommerce Businesses - Buying & Selling

About This Author: Peter Siegel, MBA (Business Purchase Financing Expert, ProBuy & ProSell Program Advisor) at BizBen (started in 1994, 8000+ California businesses for sale, 500 new & refreshed postings/posts daily) working with business buyers, business owners/sellers, brokers, agents, investors, & advisors). Phone him at 925-785-3118 to discuss strategies regarding buying, selling, (or financing a puchase of) California small to mid-sized businesses.

Categories: BizBen Blog Contributor, How To Sell A Business, Selling A Business

Comments Regarding This Blog Post

Contributor: Timothy Cunha JD: Business Broker, SF Bay Area

Peter's article is all great advice. We have several eCommerce business opportunities available and more on the horizon. People considering selling through our brokerage have found my 5-page white paper, "Selling the Software or Technology Business", very helpful in planning, pricing, and executing the sale of their business. I cover special aspects of setting a value for such a business, 12 things NOT to do in such a sale, and specifics about intellectual property, legal representation, and finding the right buyer. I'm happy to share that report with anyone with no obligation.... just ask.

Helpful Resources To Assist In Selling And Buying California Businesses

AJ Rana - Business Broker, San Francisco Bay Area

Professionals who understand the importance of world class business brokerage service and the value it can create. Specializing in assisting sellers and buyers with retail stores, restaurants, hospitality & lodging, manufacturing operations, distribution companies, e-commerce and service businesses.

Helen Yoo, New Century Escrow - Escrow Services In Southern California

New Century Escrow, Inc. is a fully licensed & bonded independent escrow company. Over 20 years combined experience in handling bulk escrow transactions. Multi-lingual staff that speaks your language, including Korean, Chinese, Vietnamese. Call Helen Yoo direct at 626-890-1151.

Rick Carlson, Business Broker - Southern California

You Will Never Feel Lost In The Shuffle. Many Brokers Simply Send Out An NDA And That's The End Of Communication. All Buyers Receive A Personal Meeting With An Ace Acquisition Specialist So They Can Recommend The Perfect Business For You. Phone Rick direct at 800-985-4939.

Janet Carrera: Escrow & Bulk Sale Service - SF Bay Area

Redwood Escrow Services, Inc. is a full service, licensed independent escrow company. We are EAFC Fidelity bonded, fully insured & licensed with the Department of Corporations. Committed to offering our clients the most comprehensive variety of escrow services available. Phone Janet at 510-247-0741.

Ryan Clark, Business Broker: Southern California

The Veld Group provides a refreshing approach to Business Brokerage, Mergers & Acquisitions and Business Consulting and Valuations. From Your Street to Wall Street, we cater to Main Street Businesses as well as more complex Strategic Firms and Start-Ups. Phone Ryan, Business Broker at 310-652-8353.

Christina Lazuric CBI CBB, Business Broker: Orange County

Premier Brokerage for selling Orange County Service based businesses since 2005! CBB provides a step by step approach to Business Brokerage, M&A Services, Business Consulting & Valuations. Contact me about selling or buying service based businesses: 949-257-7823 Cell.

Michael Floorman, Business Brokerage, BTI, San Francisco Bay Area

Business Team, San Jose (Campbell) located in the Pruneyard Towers at Bascom and Hamilton. Established in 1981 Business Team with over 6600 sales to date has 1000 business listings to choose from, paid Google advertising. We offer highly trained and experienced professionals.

Lee Petsas, Business Broker - Southern California Area

Lee Petsas has been selling businesses with UBI Business Brokers in Southern CA since 1981. In 1999 he became the Owner and Broker for UBI. He has been approved multiple times by Courts as an Expert Witness in the area of Business Valuations.

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