Buying an ecommerce business might be a wise business decision for entrepreneurs who are not ready to set a business by themselves. Purchasing an online business is definitely easier, because the traffic, customers and suppliers are supposed to be there already.
But even when you decide to buy an ecommerce business, you still have to deal with some difficulties. Sometimes the seller might not be as honest as you would think, or sometimes you might discover that you made a deal that offers a percentage of your sales to the original owner.
In order to avoid all these possible outcomes, you should be as informed as possible. Today, we have put together some tips that should really help you stay safe when you decide to buy an online business. Let’s take a look at them.
Find the right platform
There are many ways to find businesses that are for sale, and you can do it with a broker or by talking directly with the owner of the website. Nevertheless, online marketplaces remain one of the best alternatives. Sites like Exchange by Shopify were created in order to make these transactions easier.
On these platforms you will be able to see all the websites that are for sale, as well as detailed data for all of them. The best thing is the fact that the information comes directly from the platform, so the seller cannot change it and you can be sure that the data about traffic or revenue is real.
Analyze the business carefully
Acquiring an online business is an important investment, and that is why you should take your time in analyzing it. Research the business as much as you can. Obviously, the seller will try to show you only the positive aspects, but you should not let yourself be fooled and you should take a look yourself.
There are many online tools that will provide you the analytics for any website. This way you can analyze how popular it is. Metrics such as Page Rank, Domain Authority, and Page Authority should be taken into consideration. In addition, consider the traffic and the Google ranking for some keywords. The design is also important, and you should make sure that it is attractive enough for the customers. Most important is how much is the site earning monthly, and the marketing tools and costs associated with it.
Do the math
Sometimes, the price of the website might not be the final cost for you. Before you make a bid for a website, you should think about how much more you would need to invest in that website. For example, if you will need to redesign the website, the cost of the hosting account, and the marketing expenses to promote it. This means that you will spend even more money in the future.
You have to take into account all the potential prices, since they will help you make a correct bid. You should also think about the supplies and check if you will need to add more in the future. Additionally, check if you will need to expand to new marketplaces or enhance the software. All these might cost you money in the future.