If you’re thinking about buying an ecommerce business, there are a number of important questions you should ask before you commit. Just like any financial investment, purchasing an online business requires careful consideration, investigation, and planning. Before you pull the trigger, you need to figure out if the business you’re looking at is a legitimate moneymaker or an unprofitable, debt-ridden trap.
Establishing the value of a business becomes easier the longer it’s been around. When considering an ecommerce business, be wary of any that have been around for less than a year. In the online space, this just isn’t enough time to determine whether or not the business is stable and positioned for long-term growth.
Ideally, you’ll want to look at companies that have been around for three or more years. At the three-year mark, it becomes much easier to complete a valuation of a business to ensure that you’re making a sound investment.
When buying any business, it’s always best to buy one that’s growing. But, there are a lot of reasons that businesses become stagnant. Maybe the owner has decided to retire and their interest has waned. Perhaps they struck gold with another business and need to focus their efforts. It could be anything.
If you’re considering buying an ecommerce business that isn’t experiencing yearly growth, work out why it’s not growing. Could your expertise help it turn a corner? Are there marketing efforts you could initiate to jumpstart its revenue? What steps are necessary to put it back on track and are they worth it?
More than any other type of business, online businesses require tracking, monitoring, and analytics. These tools are necessary to gauge the effectiveness of the business’ marketing efforts and, more importantly, to iterate on and improve those efforts.
As a first step, you should request direct access to the business’ Google Analytics. The data Google provides will give you insight into the business’ traffic, conversion rates, and user behavior. Beyond that, you should also request analytics for every platform that they sell on, such as Amazon, Etsy, Facebook, and Wal-Mart.
If you’re not able to get direct access to a business’ data, be wary. You can’t get a clear picture of the value of an online business without full access to its data. It’s fine to use screenshots to gauge your initial interest but don’t make a decision without exploring the data yourself.
It’s impossible to understate how important reputation – and reviews – are for ecommerce businesses. Before committing, check the business’ reviews on all of the platforms that it sells on. Whether their products are listed on Google, Etsy, Amazon, or eBay, you should be able to get a good idea of their reputation by reading customer reviews.
Beyond the company’s sales platforms, make sure you’re not on the hook for any ongoing lawsuits, recalls, or product returns. These factors can be costly and, unfortunately, can contribute to a business’ failure before a new buyer ever gets a chance to repair them.
It’s unwise to assume that someone is selling their business because it’s failing. In fact, owners sell their businesses for a number of reasons. They could be looking to retire. They could be experiencing health problems. Or, they could just be losing interest in the business’ day-to-day operations.
If you’ve done your research, you may already know the real reason the owner is selling. But, if you don’t, put in some work to find out. The last thing you want is to be saddled with an unprofitable business because you didn’t work out a proper valuation. Of course, Advanced Business Brokers specializes in brokering privately owned businesses and is more than happy to assist if you get stuck.
With our worry-free process and team of experts, you can be confident that you’ll receive all the information necessary to make a sound decision. Whether you’re looking at buying an ecommerce business, a manufacturing company, a distribution center, or any number of other businesses, you can count on our team to provide the informed, expert guidance you need.
If you’re thinking about selling your business and don’t know where to start, consider speaking with our team here at Advanced Business Brokers. We specialize in brokering and advising exit plan strategies for various sizes/sectors of businesses.
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With over 25 years of dedicated experience, Bob empowers small business owners in the Indianapolis metro area to achieve their entrepreneurial visions, whether by building scalable operations or crafting highly sellable entities. For three decades, he’s cultivated a robust network of owners, buyers, and strategic partners, a resource he fully leverages to help clients meet their unique objectives.
Bob’s expertise spans a diverse range of industries, including trade-based businesses like construction, HVAC, skilled trades, and manufacturing, as well as white-collar professional service firms such as law, finance, marketing, and technical services. Beyond his client work, Bob actively contributes to his community, serving as Treasurer for the Boone County Chamber Board and as well as a board member for both the Central Indiana Police Foundation (CIPF) and Fiscal Sponsorship Allies (FSA).
Bob holds a degree in Mechanical Engineering Technology from Purdue University in West Lafayette, Indiana, and teaches there as well in the Certificate in Entrepreneurship and Innovation Program, which is ranked among the Top 50 programs in the U.S.
He lives with his wife Lori in Zionsville, just outside Indianapolis, and in his free time, he enjoys working on his home, playing golf, and traveling.
With a degree in psychology and a professional background in social work, Marissa
brings a people-centered lens to every project. Her experience includes being a Project
Planning Specialist at GE Aerospace, creating efficient processes and structures that
help teams work smarter and stay aligned. Marissa joins the Main Street Market Maker
team with Advanced Business Brokers to dedicate time and attention to smaller
business opportunities and provide excellent and supportive customer service.
Outside of work, she is a mom of three young men who finds joy in the everyday chaos
of family life. She loves strong coffee, warm beaches, and any excuse to spend time in
the sunshine. Hot yoga and hammocking are some of her favorite ways to reset and
stay grounded and help her show up with more presence both at home and in my
professional life.
Steve brings more than 20 years of experience as a legal and financial professional to
his work with business owners preparing for transition and sale. He advises owners and
their families through every stage of the exit planning and transaction process, with a
focus on thoughtful assessment, risk management, and strategic value enhancement.
Steve is a Certified Exit Planning Advisor (CEPA®) and an active member of the Exit
Planning Institute. He previously served as Director of the Small Business Development
Center in Toledo, Ohio, where he worked closely with entrepreneurs across a wide
range of industries on growth, financing, and succession planning initiatives.
Earlier in his career, Steve practiced law with a nationally recognized Chicago-based
law firm and held roles in capital markets and commercial banking with leading financial
institutions. This multidisciplinary background allows him to approach business
transactions with a practical understanding of legal, financial, and operational
considerations.
As a business broker, Steve specializes in industrial and manufacturing companies,
skilled trades, and professional service firms, including marketing, staffing, and financial
services businesses. Steve earned his Juris Doctor from Loyola University Chicago
School of Law and a bachelor’s degree in economics from the University of Notre
Dame. He lives in the Toledo area with his wife and two daughters. Outside of work, he
enjoys traveling, cooking, and spending time at his family’s lake house.
A lifelong resident of Fort Wayne, Indiana, Dr. Mark Hagar brings decades of hands-on experience in small business ownership, acquisitions, and turnarounds to his role as a business broker. Over his distinguished career, he has acquired and operated more than 20 companies and engineered over 50 successful turnarounds, giving him a uniquely practical understanding of what makes businesses succeed, and sell. His portfolio spans manufacturing, distribution, and service firms in industries including printing, education, military contracting, aerospace, and orthopedics. This diverse background enables him to identify value, anticipate buyer needs, and structure complex deals with confidence and precision.
Mark holds a Doctorate in Business Administration (DBA) from Cranfield University’s School of Management in Bedford, England—one of Europe’s leading business schools. His research on small business resilience and operational excellence has been recognized by the Small Business Institute (SBI), the United States Association for Small Business and Entrepreneurship (USASBE), and the International Council for Small Business (ICSB).
In addition to his business career, Dr. Hagar has served as a member of faculty at several institutions of higher education, including Holy Cross College (Notre Dame), Trine University, and the University of Saint Francis. He also hosted Your Business Matters, a small business–focused radio show and podcast for more than a decade and is the author of Small Fortunes – the Acquisition Entrepreneur’s Guide to Buying a Profitable Small Business.
A passionate advocate for entrepreneurs, Mark previously chaired the Indiana Leadership Council for the National Federation of Independent Business (NFIB), representing small business owners before state and federal legislators. He currently serves as President of the Allen County, Indiana Economic Development
Commission.
As a broker, Mark specializes in industrial, manufacturing, and distribution firms, with particular expertise in special situations, distressed assets, and complex transitions where experience, creativity and discretion are central to success.