Hi guys, Looking to sell my online e-commerce business and I don't know how to calculate its value? Profitability for 2 years? For 3 years? (net profit ~ $3000/month). Flippa calculated the price around $90000. Can anyone please tell me what would be a reasonable price to ask? Appreciate any feedback from you guys!
Flippa's valuation seems reasonable since most e-commerce businesses are valued at 24-36x their monthly net profit. With $3000/month, $90K is on the higher end, likely factoring in growth potential or stability. To make your price more attractive, you could provide detailed performance metrics and trends for the past 2-3 years. Have you considered consulting a broker for a more tailored valuation?
I'd be adding in how much time is spent working in the business any specialist skills or education needed what are the prospects for the market - is the business about to be made obsolete or is the market growing overall?
how much time is spent working in the business - maybe half an hour a day/two days to respond to requests from potential buyers that come through the contact form any specialist skills or education needed - absolutely not what are the prospects for the market - is the business about to be made obsolete or is the market growing overall? - I think there is good potential for growth since there are not many competitors and this niche will always be relevant
This is an interesting one, if the buyer puts more time in it, can they increase the value of the business. Adding value is something many/most business buyers will be looking for This devalues the business as there's a lower barrier to entry, but increases the number of people who might buy it This needs to be one of your key selling points and will increase the sale price. Just remember that once upon a time Kodak thought that too.
While Flippa's estimate of $90,000 is a good starting point, consider factors like growth potential and market demand, which could influence the final price. Getting a professional appraisal might also help you find a reasonable asking price that reflects your hard work.