As the world continues to explore the depths of the internet, more eCommerce businesses arise. Ecommerce is growing daily. By 2023, it’s expected that eCommerce will account for more than 6.5 trillion in sales globally, making up 22% of global retail sales as a whole. With that much money being made in the eCommerce business sector, it’s understandable why people would be interested in getting involved.
Rather than start your eCommerce business from scratch, researchers recommend looking into purchasing an existing eCommerce business. There are quite a few benefits to purchasing an existing eCommerce business. You’ll be stepping into a functioning business rather than starting from scratch.
To purchase an eCommerce business, you can work through a domain brokerage, a consultation service that can help you find the perfect domain name and execute a point of purchase for it. Some websites list eCommerce businesses for sale. But what makes an eCommerce business worth purchasing? You’ll want to know what you’re looking for during your search.
Follow These Tips When Buying An Existing eCommerce Business
Look Into Traffic
The traffic to your eCommerce business has a strong connection with the profit of that particular website. Before purchasing an eCommerce business it’s pertinent to check the traffic garnered on the site. Checking traffic levels before purchasing an eCommerce business can help ensure you know how much work you are getting yourself into when it comes to building the business out.
Look into where the locations of where online traffic is coming from, the different age groups the eCommerce business has been appealing to, and from when the site’s traffic has been on either a downward or upward trend. Looking into the traffic numbers before purchasing can help you in forecasting your profits. You can use the information to inform yourself on how to expand upon the traffic the eCommerce business is getting.
Speak With Suppliers
Before taking over an eCommerce business you’ll want to speak with the current suppliers. Even if you’re thinking of seeking out different suppliers, you’ll want to ensure you can continue a relationship with the current suppliers so there are no product delivery issues.
Make sure they’re keeping the same rates as they had with the previous owners of the eCommerce business you’re buying, as some suppliers may try to raise your prices to increase their revenue.
The thought process behind this is that since you’ve not worked with them before you won’t know the baseline for their product pricing, another important reason to speak with the suppliers before purchasing the eCommerce business is so you can ensure they’re educated in the field.
Find A Way To Value The Business
Knowing the worth of your eCommerce domain is pivotal before buying as it is essential to turning a profit with your investment. However, determining a fair price for your eCommerce business can be confusing, especially if it’s your first time breaking into the market.
Websites such as GoDaddy Auctions and Afternic can help you assess current market prices for domain names of established eCommerce businesses. Namebio.com allows you to compare domain names of eCommerce businesses, showing you the difference in price between them. Doing this research is the only way to ensure you’re not overpaying for an eCommerce business.
Ask Why It’s Being Sold
Before purchasing an eCommerce business ask why it’s being sold. Trust that you may not get the full truth from the person selling the eCommerce business, so rely on doing your due diligence on its history. Look to see how long the site has been online, and how active it’s been in the last year. It’s best to purchase an eCommerce business that has had a positive or relatively positive reputation throughout its time online.
Ecommerce businesses that have been running for longer periods are typically more stable, but they also may have a diluted consumer base. A diluted consumer base spells trouble for your future with the eCommerce business, however, making changes and rejuvenating the eCommerce business on your own can help expand and re-ignite the excitement within consumers.
Identify How You Can Improve The Ecommerce Business
Before purchasing an existing eCommerce business, brainstorm about what you would be adding to the eCommerce business that it’s missing to help it flourish. Whether it’s a new brand, breaking into an even more niche market, or completely revamping the eCommerce business, knowing how you want to improve the business before purchasing will set you up for a successful first year. You can implement a strategy that covers all of your improvements and work from there.
