We're looking at possibly buying an existing ecommerce site (sorry I can't give out the url). Apparently they've been netting $6k to $8k per month for several years now. This is after all bills have been paid. They've stated the net profit per month has been consistent over those several years. So what do you think a fair price to offer would be? How are ecommerce sites priced/valued? Thank you in advance for any advice you can provide, cheers
This will be around high $XX,XXX to $XXX,XXX since they have maintained the same income for years and you know how hard it is.
ecommerce is a great business to get into because it is true that their sales are typically fairly stable. They can be seasonal so make sure you look at a full years worth of sales if possible. Also, the website is worth probably at least 8x the monthly value. Although based on what I have seen, many websites are going for 10x - 12x the monthly value. In this case, that would be somewhere between 66K - 88K but I probably wouldn't pay that much unless I just absolutely wanted it. Be careful! Since you are spending this much, I would use an attorney to setup the contract and ensure that there is a proper trade. At minimum, use escrow.com.
Yes there is still market for ecommerce site but depend on what kind of product it sell. The fair price for monthly earning $7k/month is around $50k roughly 7x of monthly earning
I think the price is perhaps between $54K and $72K. You can judge a ecommerce's value via these elements including but perhaps not limited to: domain name(inculding how has it been registered...)ã€contentã€PR value〠Pageviewã€imcome of the webisteã€daily maintenance ã€the advantage and station in special field and etc...