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Looking to buy an Ecommerce site, any tips from people who have done it? (13)


07-09-2016 06:37 PM #1 affilimate (Member)
Looking to buy an Ecommerce site, any tips from people who have done it?

Hi guys,

I'm currently looking at buying an Ecommerce site and have a relatively low budget $5-10k to do so.

From my research most websites are sold at a multiple and are generally a low monthly profit based on their multiple. I completely expect this lower revenue but the site I'm buying needs to have growth potential. The reason I'm looking to buy is so the site is set up, has history, product sourcing, costs of marketing, fulfilment etc have been worked out by the previous owner rather than starting from scratch.

Has anyone had experience of buying an Ecommerce website? What kind of price range did you pay for the business? What's costs did you allocate for the marketing after sale had been completed?

Any help or advice would be much appreciated!

Please reply on thread rather than pm me as I want anyone else in a similar position to hopefully learn something here too!


07-09-2016 08:40 PM #2 matuloo (Legendary Moderator)

Generally speaking : healthy sites, generating solid revenue with growth potential are not sold, or are sold for a lot of money = XX times monthly revenue. When the price is "low", it means the site is already on the decline and you need to be able to either make it grow again or asses the risk and get your investment back (+ profit) before it dies completely.

You can also get sites for relatively cheap, in case they are built around a high risk subject or they rely on high risk sources for traffic generation. So adult, gambling etc sites that rely a lot on google for example.

So you need to decide what you are after - a quick risky buy that has a potential to turn some profit before the sites dies or a solid and stable business that you will have to pay PREMIUM price for


07-09-2016 08:41 PM #3 johnaff (AMC Alumnus)

i know people who do this through 2 means, flippa.com and also just directly reaching out to site owners.

I would also hitup my friend Jock Purtle, hes a website broker and should be able to help you out --> http://www.digitalexits.com/

Check out his blog and podcast too, he goes over some info about buying/selling websites that would probably be pretty helpful.

I would be extremely cautious though. I hear theres a lot of swindling going on in that area


07-09-2016 11:02 PM #4 izzy (Member)

I'm surprised how low the multiplayer is. Thought it would be at least 4+ for online..

http://www.digitalexits.com/whats-yo...usiness-worth/


07-10-2016 12:43 PM #5 affilimate (Member)

Thanks for all your responses. Pretty much confirmed what I thought that anything making decent money isn't going to be cheap. Flippa.com has a lot of sites that are on the decline from what I've seen.


07-10-2016 01:39 PM #6 matuloo (Legendary Moderator)

Quote Originally Posted by affilimate View Post
Thanks for all your responses. Pretty much confirmed what I thought that anything making decent money isn't going to be cheap. Flippa.com has a lot of sites that are on the decline from what I've seen.
It can still be a great buy if you learn how to identify the signals. My best buy ever was an adult site on a decline, it was down to about $2500 profit per month, I bought it anyways and it continued to make $2500 per month for the next 3 years The seller was in a hurry so he let it go for 2.5x $2500 ... how's that for ROI?


07-10-2016 11:21 PM #7 panicore (Member)

@matuloo

Similar story here. Altough not on a decline but bad monetization.
A lot of the SEO guys are lacking a bit in the monetization part.


07-11-2016 11:58 AM #8 matuloo (Legendary Moderator)

Quote Originally Posted by panicore View Post
@matuloo

Similar story here. Altough not on a decline but bad monetization.
A lot of the SEO guys are lacking a bit in the monetization part.
Very true, some people are good at building traffic, others are good at monetizing it And I'm glad it's that way, otherwise there wouldn't be so many traffic networks to buy traffic from


07-11-2016 01:10 PM #9 affiliaxeguy (Member)

Hi "affilimate" why dont you build it on your own?
with this budget you can still get someone to build it for you and with the rest of the budget you can start pushing traffic to it.

you can also check WIX and play with its free version.
so you can start build the site on your own very easily, once the site is live you can see how it performs, if the results are good enough you can upgrade the package and build a monster site.

also when saying ecommerce its a bit too general as it can contain a lot of different products and verticals,
selling health related products, selling gadgets, fashion, flash lights and other military equipment,

once you figure what exactly is your site is about in sense of Focus, you will be able to move forward,


07-12-2016 02:07 PM #10 cmdeal (Veteran Member)

Quote Originally Posted by matuloo View Post
It can still be a great buy if you learn how to identify the signals. My best buy ever was an adult site on a decline, it was down to about $2500 profit per month, I bought it anyways and it continued to make $2500 per month for the next 3 years The seller was in a hurry so he let it go for 2.5x $2500 ... how's that for ROI?
NIce deal!


07-30-2016 04:35 PM #11 maxzhongguotong (Member)

i don't know if i can tell it ( in case please admins feel free to delete the message ) but i have an e-commerce and i was thinking of selling it because at the time i have no time to manage it. The offer is sweet if you're from the US


07-30-2016 11:18 PM #12 that_brown_guy (Member)

there are many websites on flippa which needs double check and the best sites as said by @mutaloo are for a very premium price, these guys (http://feinternational.com) have a very good portfolio and are well known but most of their portfolio consists of premium websites.

https://www.quicksprout.com/2013/03/...selling-sites/ - this can also be a good point to start.


08-11-2016 05:49 AM #13 pandabear (Member)

Quote Originally Posted by izzy View Post
I'm surprised how low the multiplayer is. Thought it would be at least 4+ for online..

http://www.digitalexits.com/whats-yo...usiness-worth/
I wonder what type of multiple the average affiliate business (with focus on running camps in-house) would get. Probably a bit higher than e-commerce assuming it's usually diversified and big companies are unlikely to take over an entire market?


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