How Website Closers Sell eCommerce Brand – Website Closers

With a sea of sellers dominating Amazon and tons of online sellers vying for the top spot on Google, differentiating your eCommerce brand can feel daunting. If you’ve built a strong reputation and a devoted following, you might think to yourself, “It’s time to sell my eCommerce brand.” Yet, achieving high multiples during the company valuation process often remains a hurdle.

After you’ve made the decision and told yourself to “sell my eCommerce brand,” the next thing is to lock in a sale price that reflects your hard work, dedication, and the solid figures you’ve achieved. We’ll guide you through the process of how to sell an eCommerce brand using the proven Website Closers approach.

eCommerce Brand

A company approached Website Closers, a team of M&A brokers specializing in online businesses. They showed promising performance in the form of impressive growth and a high rate of returning customers. These are what made the sale attractive to acquirers:

• The owner, who has decided to execute an exit strategy for digital brands by finding the right buyer for the company’s eCommerce channels, thrived with a balanced presence on Amazon and its Magento platform, achieving a 60/40 split across sales channels, with just 30% of its traffic driven by paid advertising.
• The company also boasted solid KPIs, particularly in its social media brand presence, which had a huge impact on its organic traffic and conversion rates. The combination of loyal customers and a diversified sales strategy—spanning both Amazon and independent channels—was instrumental in justifying a premium asking price for the business.
• With earnings of approximately $800,000 over the trailing twelve months and a year-over-year growth rate of 30%, the company was primed for a competitive market multiple.

Reflecting a 5X multiple on its last twelve months’ earnings and nearing a 4X multiple on projected future earnings based on its current trajectory, the eCommerce business valuation proved compelling. This strong positioning led to three solid eCommerce potential buyers in just two weeks after being listed.

The Challenge Selling eCommerce Brand

For an eCommerce store like the one featured in this case study, which displays impressive performance, it’s only natural that the owner aims to maximize their payout after the sale. The real challenge lies in securing the highest possible eCommerce brand valuation and closing the deal at peak value.

An eCommerce owner might excel at online product sales and marketing, but when the moment arrives to sell the business itself, uncertainty often creeps in: “I want to sell my online brand, but where do I begin?” And another valid concern is “where to list my eCommerce brand for sale.”

To ensure the best outcome, owners should seek an eCommerce business broker with a track record of appraising similar companies. These experts understand the unique metrics that set digital stores apart, metrics that simply don’t apply to traditional brick-and-mortar valuations.

Without an adept eCommerce business broker, selling an online store can drag on. One of the biggest headaches is sifting through each flaky potential buyer. Platforms online often pull in idle browsers over committed bidders, exasperating owners crafting a retail exit plan. Worse, these sites might leave sellers vulnerable to cons, like buyers haggling finances unfairly or probing for deep business details without solid purchase intent.

“How much is my eCommerce business worth?” Sellers wrestling with this need assurance their eCommerce brand valuation holds up. Teaming with premier online business brokers, like the Website Closers team, who are versed in eCommerce transactions, often proves the best way to sell an eCommerce brand while nailing down the best price.

eCommerce Brand Buyer

The pool of potential buyers for this company was diverse. After the eCommerce sales process, the final purchaser emerged as a seasoned professional from the corporate world, eager to leave the confines of that life behind and step into the entrepreneurial realm—a classic tale of American ambition realized.

Typically, individual buyers, like the one who acquired the eCommerce brand in this case study, are drawn to purchasing a business to secure their financial future, often honing in on smaller, owner-managed enterprises. These individuals are usually looking to swap out their existing employment, prioritizing an online business plan that can reliably substitute their current earnings. As a result, they frequently gravitate toward transactions that allow bank loans to finance the purchase.

You can rest easy knowing this buyer intends to stay deeply engaged in running your business post-sale. Another category of business buyers includes private equity firms, which acquire full ownership of companies demonstrating growth potential, with their primary aim being to drive revenue.

Preparing to sell eCommerce Brand

“Sell my Amazon brand.” Deciding to exit an eCommerce business is considered a huge milestone and life-changing decision, especially for a company like the one showcased in this case study, where the owner has driven earnings to around $800,000 over the past twelve months, alongside a robust 30% year-over-year growth rate.

When preparing to sell your eCommerce business, certain questions naturally arise:

• • Is now the ideal moment to step away?

• How much is my online brand worth?

• How can I push for stronger multiples during the valuation process?
• What steps can I take to boost my business’s appeal to prospective eCommerce buyers before the sale?

At WebsiteClosers.com, we meticulously prepare your company to smooth out the transition to the new owner. Addressing critical aspects, including legal requirements, sharp negotiation tactics, and strategic deal structuring, is what we do leading to a successful deal.

We commence your exit plan by looking into your eCommerce company’s financial health and performance, revealing its genuine value and shaping a tailored exit strategy aligned with your goals—whether that’s a swift sale or a gradual shift while rolling equity.

The eCommerce mergers and acquisitions process then shifts to marketing, with a targeted listing designed to attract only the best buyers. They are carefully vetted to align with the vision you have for your company.

Selling Process

At this phase, the WebsiteClosers eCommerce brand brokers compiled an in-depth due diligence package, meticulously auditing and organizing financial statements, sales figures, supplier contracts, and operational data to ensure everything was transparent and readily available for the review of prospective buyers.

What creates confidence in the performance of a business is when the potential buyer can easily identify growth factors reflected in the financial figures.  Our eCommerce retail business advisor made the necessary preparations to optimize this verification process.

Buyers looked at the detailed evaluation and examined these fundamental aspects that reflect growth:

• Revenue patterns
• Profit margins
• Customer acquisition sources
• Inventory systems

They also considered the eCommerce brand’s potential vulnerabilities:

• Reliance on suppliers
• Competitive pressures
• Long-term viability of the company’s growth path

With its operations happening online, the buyers also had to rigorously analyze the logistics efficiency, platform regulations, and customer loyalty metrics.

Throughout the due diligence stage, we facilitated the communication between buyer and seller, swiftly addressing questions and maintaining clarity. Deal terms were fine-tuned on an as-needed basis and with transparency as issues surfaced.

With all vital components validated, the process advanced smoothly toward completing the sales contract. Broker fees are not paid during the sale process. Instead, they are calculated as a percentage of the final sale price applied upon successful closure.

The buyer collaborated with Website Closers’ lending partners to acquire this thriving business, structuring the purchase with a $400,000 cash down payment, a $600,000 seller promissory note, and a $3 million bank loan.

Our commitment extends beyond the deal’s conclusion. In other words, we are still involved in post-exit plans to make sure that your vision as the company’s owner will continue once it has transitioned to the acquirer.  Early in the consultation, we explore the seller’s post-sale aspirations. From there, we plan our strategies and follow through to align with those goals. Transition planning is part of the business transaction, equipping the new owner to take over operations effortlessly once the seller fully steps away.

Selling your eCommerce business with Website Closers means you gain access to experience and knowledge honed for decades. Buy or sell your business through our brokers by contacting us today!

Result for Buy-Side and Sell-Side

With annual payments hovering just below $400,000, the company’s robust growth, substantial inventory included in the sale, and a working capital loan from the lender enabled the buyer to recover their down payment in just nine months. That’s an impressive feat of 100% ROI in less than a year.

Leveraging a working capital line of credit from both Amazon and the lender, the buyer fueled further expansion and is now gearing up for an exit via Website Closers, aiming for a holding period of no more than five years.

If the business sustains its 30% year-over-year growth, pushing earnings near $2.5 million by the time it hits the market and sells at a conservative 5X multiple, the company could command a $12.5 million valuation. After settling the remaining loan balance from the original purchase and accounting for long-term capital gains taxes (post-expenses and basis), this venture—initially acquired with a $400,000 investment—not only repaid the buyer in nine months but also delivered steady cash flow for her family over five years. Upon sale, it’s projected to yield an estimated $8 million in net proceeds after taxes and fees, translating to a remarkable 20X return on her initial $400,000 outlay.

At Website Closers, we help buy and sell eCommerce brands like the company in this case study. If “sell my digital brand” is what you’re planning, call us for a consultation and see what we can do to sell your business at the best price possible.