Buying an Online Business? Consider These Critical Steps

Last Updated October 2023

Buying an online business requires a substantial initial investment, but one that’s worth it. The allure of purchasing an established e-commerce business lies in its potential for immediate profitability, reduced start-up risks, and the opportunity to tap into existing customer bases.

Wondering if now is a good time to purchase one? With more and more consumers turning to online shopping, the e-commerce market is rapidly expanding. In fact, in the second quarter of 2023, retail e-commerce sales were estimated to have reached $277.6 billion. If you want to take advantage of this growing market, here are some essential steps to keep in mind.

Your Tools for Success When Buying an E-commerce Business

The first thing you will need to do is find a compelling e-commerce business for sale. You should pick a niche that fits your knowledge and skills well and that hones in on profitable business opportunities. A few key things you will want to look at in this stage are how the company is performing, its reputation, and its potential to grow.

Next, check to see if the company is making stable and consistent income. Ideally, the right business would be making a profit, but if not, consider if the improvements needed are ones you’re willing to take on.

Another important step is to check customer reviews. This will give you an idea of the strengths and weaknesses of the business. Finding room for improvement will help you develop a game plan for post-acquisition.

Dig a Little Deeper

After finding the right e-commerce website, it’s important to conduct thorough research, which may involve consulting the current business owner. First, ask about their current daily, weekly, and monthly processes to gain insight into how their business model and marketing strategies are performing. Take time to digest this and develop an improvement plan.

Next, analyze social media metrics, like engagement (comments, likes, shares), to identify lead-generation opportunities. Determine their following, audience, and customer base.

Finally, it’s essential to find out what platform the current business owner uses to host the online store. While you can likely switch to another hosting platform, you should focus on understanding why the business owner chose their current platform. What’s working? What isn’t? Make sure there is ample time for transferring the domain into your name.

Go the Extra Mile

Don’t settle after completing some of these more preliminary steps. Keep asking the seller detailed questions to get as much information as possible. As a new owner, you will want to make sure the company:

• Is growing – growth is vital if you want to increase your income.
• Has a variety of traffic sources – many platforms like Google Analytics determine metrics such as the rate at which visitors convert to customers, which provide touchpoints on how well the business is doing. Take a peek at the company’s track record as far as sales and profits to ensure you will have a steady income as you advance.
• Has multiple revenue streams – relying on one stream of revenue is risky in maintaining a sustainable income
• Adheres to PCI security standards – protecting your customers’ sensitive data is crucial to gaining customer trust and complying with e-commerce laws. Organizations like the FTC offer additional guidelines for security and consumer privacy.
• Has an effective marketing strategy in place.

Does the process of searching for a business for sale overwhelm you? Business brokers can make the search, selection, and research process go more smoothly and decrease stress. Reach out to a local Sunbelt Network business broker to help you buy an online business risk-free.