You’re thinking about selling. Or maybe you’re just planning for the future.
Either way, you need to know what your ecommerce business is worth—and why.
Here are 15 FAQs that break it down.
Quick Answers (Top 5 Most Common Questions)
1. How much can I sell my store for?
Most stores sell for 2.5x to 3.5x annual SDE. Example: $100K SDE = $250K-$350K sale price.
2. What’s the #1 thing buyers look for?
Predictable revenue. Repeat customers, diversified traffic, and stable margins. Predictability commands premium multiples.
3. How do I calculate my SDE?
Net profit + owner salary + one-time expenses + personal perks. It’s the total cash the business generates for its owner.
4. What hurts my valuation most?
Single-channel dependence, low LTV, owner dependence, declining revenue, and messy books. These are the big five.
5. How do I get a free estimate?
Get your free valuation here. It’s the fastest way to get a realistic number.
Advanced Valuation Questions
6. How does LTV change my price?
LTV is the biggest lever. High LTV (repeat customers) can push your multiple from 2.5x to 4.0x. Low LTV can drop it below 2.0x.
7. What’s the ideal LTV:CAC ratio?
3:1 or better. For every $1 spent acquiring a customer, they generate $3 in lifetime value. Below 2:1 is dangerous.
8. Does my traffic source matter?
Yes. Organic and email traffic are more valuable than paid traffic because they’re more sustainable. Buyers pay premiums for owned traffic.
9. How do I value my brand?
Brand value is intangible but real. A recognizable brand with loyal customers is worth more than a generic store. Think of it as your moat.
10. What if I have no team?
Expect a lower multiple. A business that depends on you is a job. Buyers want assets that run themselves.
Timing & Process Questions
11. How long does the full process take?
Plan for 3-6 months from preparation to close. This includes cleaning books, boosting LTV, listing, due diligence, and transfer.
12. What’s the hardest part of selling?
Due diligence. Buyers scrutinize everything. If your books are messy or your claims don’t hold up, the deal falls apart.
13. Should I sell now or wait?
If revenue is growing and LTV is improving, wait. If revenue is declining or your niche is saturated, sell sooner.
Risk & Red Flags
14. What are the top deal-breakers?
- Financial mismatches: P&L doesn’t match bank statements.
- Hidden liabilities: Undisclosed debt or legal issues.
- Platform violations: Amazon flags or ad bans.
- Traffic fraud: Bot traffic or inflated numbers.
- Key person risk: Business depends entirely on the owner.
15. How do I avoid deal-breakers?
Be proactive. Fix platform issues. Clean your books. Document everything. Be transparent about problems. Buyers respect honesty and pay more for clean businesses.
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