Since its inception in 2006, Shopify has become an eCommerce platform of choice for over 500 Mn buyers annually. Reportedly over 5.5 Mn online businesses use this digital platform, across 175 countries. o sell their products and services amassing a combined order value in excess of 79 Bn last year. These impressive figures are clear evidence of the wide-scale popularity and global reach of Shopify. It is natural then for investors to be interested in well-established Shopify stores for sale. As they can get more assured returns than from some of the other, less proven avenues.
If you are a business owner who is contemplating listing their Shopify store for sale then this handy guide will serve you well. Let us examine some of the key factors that attract potential buyers towards Shopify stores for sale and ways you can sell your own, for a profit.
Factors That Make Shopify Stores An Attractive Acquisition Target
Before you go ahead with the motions of putting your Shopify store for sale you must first put on a buyer’s hat. And understand the key factors that are likely to be considered. Some of the prominent ones include:
Age of the business:
If you’re wondering why the age of the Shopify store for sale matters. hen let us tell you it is a combination of perception and performance. The perception is that businesses that have been active for longer durations are likely to have seen the ebbs and flows of the market. Since they are still standing, it is evidence of their sound structure and overall performance. While there is no rule or benchmark for this. Stores that have been operational for three years or more are likely to get more interest from buyers.
Surely, perception can’t be the sole buying decision. It needs to be backed by performance. Key Performance Indicators (KPIs) are tangible metrics that determine how your Shopify store for sale has been faring in the real world of eCommerce. Some of the metrics investors are usually interested in include your average revenue per customer, your inventory statistics, online traffic to your store, browsing numbers, cart-to-order ratio, etc. A lot of this information can easily be accessed using your Shopify account and going through your store’s statistics.
The old adage ‘it’s all about the money is not entirely untrue. After all, any buyer before putting up cash to buy your Shopify stores for sale will want to be thoroughly assured of getting healthy returns on their investment. Your business may be of the right age, and your operational metrics might be sound, but if your store is financially tottering, then this will be a big red flag for any investor. It is worthwhile to keep your finances organized and regularly assess them for areas of improvement. The important aspects to consider here include your annual sales, net profits, costs of goods unsold, salaries and taxes paid, outstanding debts, etc.
Ease of running the business:
Another important factor that is often ignored is – how easy it will be to continue running the business under the new ownership. Since you have set up your business from scratch, you are bound to know its intricacies thoroughly. But when a new owner takes it over, will it be that simple for them? Experts recommend having detailed documentation of each aspect of your enterprise to enhance the appeal of your Shopify store for sale. This includes creating standard operating procedures (SOP) for every function like sales, supply, order booking, logistics management, etc. Detailed onboarding guides and training manuals will make it easy for new employees. And owners to fully understand the nature and system of your operations thus giving them the confidence of being able to continue running it successfully in your absence.
Knowing the factors that make your Shopify stores for sale attractive to buyers gives you a window into their minds and thought processes. This is vital to find areas that can be fine-tuned in order to achieve a higher valuation. For example: if you find your business metrics are dwindling or that there is not enough current footfall toward your online store. hen you can consider running an online e-marketing campaign to create more online buzz and direct traffic to your store. These and several ideas are bound to occur once you carefully examine the current performance of your store.
You can even seek professional consultation in this regard. While it will come at a cost, it can end up getting you significantly higher returns from the eventual sale of the store.
Selling your Shopify store can be a roller coaster ride filled with contrasting emotions. There is a good deal of preparation that needs to go in. f you wish to reach your goal of maximizing your profits. Understanding the reasons why investors will be willing to buy your store is just the first step of many. If you wish to know the other steps to successfully put your Shopify store for sale. Then check out our detailed guide on the subject.