How to Buy a Shopify Business for Sale
Buying a Shopify business for sale is not different from investing in an online-based real estate business. When you buy an online business for sale, it creates a passive income stream that you can own, manage, and grow significantly, which is far better than starting a business from scratch.
From early businesses to successful eCommerce sites ranging between growing entrepreneurs and experienced veterans, Shopify is laden with thousands of eCommerce stores.
Why Buy an Online Business for Sale from Shopify or a Broker?
Shopify’s marketplace is great. With more than 10,000 listed online stores for sale, Shopify towers as the largest marketplace for online businesses’ buying and selling.
Trustworthy & Transparent
Besides having a huge marketplace, Shopify business for sale is only created and listed by Shopify merchants. Third-parties are not allowed to sell on the platform. Information like revenue and traffic data comes directly from Shopify. Sellers are not permitted to edit their business/store data. This creates a sense of security and trust among interested buyers, knowing that they will get exactly what they see.
Business for all
Stores for sale at Shopify range from a starter ready-to-go stores to establish and successful online businesses. Also, prices vary—from $50 starter stores to six-figures and established stores that may sell more than $1 million.
A Step-by-Step Guide to Buying a Shopify Business for Sale
Are you looking for the best tips to buy a Shopify business for sale? Below, we have put together the best practices for buying a Shopify eCommerce store for sale.
Define your requirements and narrow down your search
Thousands of businesses are listed for sale on the Shopify eCommerce brokerage platform. So, it makes sense to narrow down on your search by defining your requirements.
Know the type of store you are interested in buying and how much you’re willing to commit to it. Draw up a budget and define the amount it will cost to realize your aim.
There are many fully functional sites that are available for sale in the price range of $50 because such sites are yet to generate any profit. Established stores listed for sale can cost up to hundreds of thousands and even to millions of dollars because such sites are generating thousands of dollars monthly. In other words, the bigger the income generated by the business, the higher the price you will pay to buy it.
In addition, you must define your product niche and see whether the Shopify business for sale you want to buy meet the requirement it takes to sell your product within that niche. Once you’re done, hit Shopify properly and visit the listing page.
Use Shopify Listings to your advantage.
You can find the exact or ideal store to buy at Shopify using four different methods.
New Listing: Look at the top of your Shopify’s eCommerce brokers’ homepage, and you’ll find a tab with the name “New Listings.” Click on the tab, and it will display about 24 new and recent listings of sites available for sale. You can select this method to purchase the latest eCommerce business for sale at Shopify.
Categories: clicking the category tab allows you to navigate easily to your business niche. For example, suppose you’re searching for a dropshipping business listed for sale, click on the tab bearing the name “dropflipping businesses for sale,” and it will direct you to the listings you want.
Search Function: just like when you type a keyword on Google search, the same process is required here. If you already have in mind what you want, type the keyword on the search function, and it will reveal a number of results that support your ideal. From there, you can select the best that satisfies your interest.
Sorting Parameters: when buying a Shopify business for sale, you can use the sorting parameters feature to filter your search based on age, price, type of business, and more.
Be conscious of every listing.
Every business for sale listing at Shopify comes with a description of what to expect, the range of traffic, and the amount of revenue generated from the previous year, as well as the asking price. You can negotiate the price with the seller by using the contact form to send a message to them.
Usually, a listing will also reveal to you what you stand to get from the seller based on the price stated, and these include;
- Supplier lists
- Email lists
- Physical inventory
- Social media info/accounts
- Logo/branding assets
- Product photos
- And such other important things you can bargain with the seller to add to the closing deal.
Don’t forget that some sites might record a drop in revenue, and this may be due to the fact that some sellers quit promoting their business from the moment they put it up for sale (find out from the seller).
Vet the store before buying
The Shopify’s business buying and selling platform don’t ultimately verify profit margins. As such, make sure that you;
- Understand and verify all traffic sources associated with the site you’re buying. Where is the traffic coming from? Can I replicate it after buying the business?
- Verify all financial data. What exactly is the site spending to get the results they’re getting currently? Look into the site’s inventory and marketing drive.
- Vet the site’s social media accounts. Don’t be carried away by the huge following; verify if the engagement rate is real.
- Why are they selling the business? Most times, some sellers include the reason for selling on their listings.
Once you’re through with vetting the business, you can proceed to make an offer.
Initiate a safe transaction
Once you have agreed on a price with the seller, both of you can start the transfer process BUT make sure you transact through Escrow. Shopify is in partnership with Escrow, a third-party payment service that ensures the protection of money until both the seller and buyer agree that all conditions pertaining to the deal have been met. Never allow the seller to convince you to do a transaction or any part of the transaction outside of Shopify.
Transfer and secure ownership
When buying a Shopify business for sale, bear in mind that the transfer process normally takes up to three business working days. During that time, the Shopify platform is preparing to simplify the transfer process for both of you. Create a checklist that includes all the items in the deal, such as what accounts and assets require a transfer. Check them one after the other.
The Shopify platform will help you with answers to any questions you might have relating to transferring social media accounts, domain names, or any other thing.
While in the course of transferring ownership, try to do the followings before the time agreed for the transfer elapses;
- Check whether the suppliers are responsive and still of quality.
- Change all the passwords for each of the accounts you have been given access to. Remove the right of access of the original seller to such accounts.
- Incorporate whatsoever support that’s been provided by the previous seller so you can know how to implement their results after you assume ownership. Ask every relevant question while you can.
The moment the Escrow appointed time elapses and the transaction is complete, you’ll become the business new owner, and from there, you can steer it any direction you want.
If you are still wondering about how to buy a Shopify business for sale, Ecommerce Brokers is always here to help you purchase a business with our Buyer Agent Services.