How Website Closers Sell eCommerce Retailer – Website Closers

With countless retailers selling on Amazon, standing out from the crowd isn’t easy. If you’ve built a solid reputation and a loyal customer base, selling your business and making an exit should feel straightforward. However, the truth is that selling it at the price you expect can still prove challenging.

“Sell my retail business.” You’ve reached this decision now. So, how do you secure a sale price that takes your efforts and investments into account? We show you how to sell a retail business the Website Closers way.

eCommerce Retailer

The retail store for sale was a fast-growing eCommerce retailer operating 35 consumer product brands across multiple categories, including health & beauty, personal wellness, and pet care. With a strong foothold on Amazon, the business has rapidly expanded since its inception, consistently achieving growth on a monthly basis. At the time of sale, the company had over 150 employees and was three years into operations.

Financially, the business demonstrated impressive profitability, with $8 million in realized earnings over the last twelve months (LTM) and projected earnings of $12 million for the upcoming year. Its strong performance positioned it among top-tier eCommerce businesses, commanding a retail business valuation multiple exceeding 10X LTM earnings when first listed for sale. However, due to its rapid growth, by the time the deal closed five months later, the LTM multiple had adjusted to 8X — still on the higher end of the typical 6-8X range seen in eCommerce businesses of similar size.

The Challenge Selling eCommerce Retailer

Selling a small but profitable eCommerce business is hard, especially if you haven’t gone through the process before and you’re not sure which professionals can help you. When you put it up for sale, you generally aim to do the following:

• Finding the right buyer for your online retail business
• Selling it at a maximum price

Many business owners look to transition into new ventures, but the process of selling their online store can be time-consuming without the professional help of an eCommerce retailer business broker.

One of the biggest concerns is dealing with unreliable buyers—those who lack the financial capability or serious intent to close a deal. Popular online marketplaces often attract individuals who inquire out of curiosity rather than genuine interest. For a business owner thinking of an exit strategy for a retail business, dealing with these individuals is a waste of time. Additionally, these platforms can expose sellers to fraudulent schemes, including buyers who attempt to manipulate financial negotiations or request excessive access to business data without a clear commitment to purchase.

“How much is my retail business worth?” This is yet another question faced by sellers who want to make sure that they’re getting accurate valuations. Many business owners find that working with the best broker for selling a retail store is the best way to help them arrive at the optimal sale price.

eCommerce Retailer Buyer

This very private sale was shown only on our VIP buyer list. The eCommerce retail company was eventually sold to a family office.

Traditionally, the most qualified buyers have been firms like private equity and venture capital groups. Over the past decade, however, family offices have also emerged as significant players in mergers and acquisitions in retail. Unlike the bigger firms, which adhere to strict mandates and are bound by restrictions during retail M&A deals, family offices offer flexibility — a benefit that the eCommerce retailer in this case study has enjoyed.

By default, bigger firms have to take over the majority of the stake and gain control over the company. On the other hand, family offices are flexible and may allow the seller to pursue their own eCommerce business plan, still make major decisions, and be part of the company’s further growth after the completion of the retail business sale process.

Preparing to sell eCommerce Retailer

Exiting your eCommerce business is a major decision. You can even consider it a huge turning point, particularly for a business like the one in this case study, where the owner, overseeing more than 150 employees, had projected earnings of $12 million for the next 12 months (as estimated before the sale process commenced).

In selling your eCommerce business, you’ll inevitably have these questions:

• Is this the right time to make an exit?
• How can I aim for higher multiples during the company valuation period?
• Is there anything more I can do to increase the value of my business in the eyes of eCommerce retail potential buyers before the sales process?

At WebsiteClosers.com, the process is fine-tuned to deliver a seamless and successful handover, tackling key elements like legal compliance, savvy deal-making, and smart transaction design.

It commences with an audit of your ecommerce company’s performance and financials. This step unlocks its true worth and crafts a custom exit plan that matches your ambitions—whether you’re aiming for a quick deal or a steady, phased transition that allows you to roll equity. Marketing then unfolds in the form of a listing, targeting top-tier buyers who are screened to sync perfectly with your vision.

Selling Process

When you sell your eCommerce business, you put it up for sale through a listing. However, at the request of the seller, we kept this confidential, and it was offered to buyers on our VIP list.

The retail business due diligence process didn’t take long, as the deal pushed through in less than 30 days after it went to market.

• During this stage, the WebsiteClosers retail business brokers prepared a comprehensive due diligence package, ensuring that all financial records, sales data, supplier agreements, and operational metrics were audited, organized, and easily accessible to potential buyers.
• Our retail eCommerce business advisors made the verification process smooth and provided buyers with confidence in the company’s performance.
• Buyers conducted a thorough review of key aspects such as revenue trends, profit margins, customer acquisition channels, and inventory management.
• They also assessed potential risks, including supplier dependencies, competition, and the sustainability of the company’s growth trajectory.
• Given the eCommerce nature of the business, factors like platform policies, fulfillment operations, and customer retention metrics were closely scrutinized.

Throughout due diligence, our team facilitated communication between the potential buyer and seller, addressing inquiries promptly and ensuring transparency. Any concerns raised were discussed openly, allowing for adjustments in deal terms where necessary. With all key elements reviewed and confirmed, the process moved efficiently toward finalizing the sales agreement. Broker fees were charged at the end of the successful deal. It is a percentage of the sale price.

Our support doesn’t end at the closing of the deal. We make it a point that the seller realizes the exit plan. At the beginning of the consultation, we ask the sellers what they intend to do after selling the company. Our strategies and post-exit implementation are centered around the specifics of what our client discussed. Transition planning is also part of the buy and sell retail businesses deal so that the new owner can smoothly run the operations once the seller has made the complete exit.

Result for Buy-Side and Sell-Side

The deal closed with a 75% acquisition of the company’s shares and a 25% equity rollover. Of the 75% purchased, the payment structure consisted of 60% cash, 10% promissory notes, and 5% allocated to a consulting agreement.

The transaction was finalized with the buyer, which provided the ownership with an exit strategy via a put clause. It allows them to sell 10% of their shares annually starting in the second year. Post-closing, all shareholders benefited from shared distributions.

A notable aspect of this buyer that appealed to the seller was their portfolio of non-Amazon brands, which they aimed to integrate into the Amazon ecosystem. A supplementary agreement was struck so the seller can assist the buyer with additional product lines beyond those initially sold in exchange for a profit-sharing arrangement. For the seller, this side opportunity surpassed the financial gains from the sale itself.

Your company could be part of our next successful eCommerce buy or sell deal. Contact WebsiteClosers.com today for a consultation.