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View Full Version : Selling an E-Commerce business or sites?


hpprod
07-15-2005, 07:31 AM
Hey Ya'll -

(Note: I previously posted this in the "lounge" a few days ago, but it was quickly lost in newer, totally "non-relevant" posts ... probably should have posted here to begin with ... so please pardon the double-post).

I have a few e-commerce retail (e-tailing) sites established with a good customer base and daily sales. Processing orders, payments, etc., has gotten to a point that I'm not sure I want to keep dealing with it ... and although it's profitable, it's not really profitable enough to justify hiring someone to run it (yet).

Where would I go to advertise a business like this "for sale" ... and how is something like this valued? I'm not 100% sure that I wish to sell, but would like some wisdom and direction on how to proceed, and would be open to it - you can PM me or post directly (don't have anything to hide, etc).

The main site sells video games, computer software, DVD's, etc. All of the fulfillment is done via reliable, reputable dropshippers so there is no out-of-pocket expense or inventory, shipping, etc.

Any advice?

Thanks in advance,
Fred

Sidorino
07-16-2005, 04:06 AM
There are lots of forums that have 'SELL' section, so you may post there, and if the business is really OK, you'll have no problems with selling it.

virgvv
07-16-2005, 06:18 AM
Two of the more active venues for selling and buying sites are on sitepoint.com (has a forum devoted to sites for sale) and buysellwebsite.com.

The value of an ecommerce site will, of course, derive mostly from sales and the size of the customer base. As a very rough guide, most web sites sell for 2x to 12x monthly revenue. Yes, that's quite a range.

Websitebroker.com has a decent article on valuation of websites, and if you google "web site valuation," you'll no doubt find others.

CybexHost
07-16-2005, 11:21 AM
Fred,
After you've evaluated your offerings and formulated a target price rang, I'd suggest making posts or placing ads in as many locations as possible.

You want to receive the most traffic to your advertisement as possible.

Best of luck.

Sidorino
07-17-2005, 02:53 PM
VirgVV is right, sitepoint is a very good place for selling a site..

JSellnau
07-18-2005, 04:11 AM
ARe you looking to sell the whole business in general or looking for someone to manage the site for you?

Tmonster
07-18-2005, 08:11 AM
http://www.bizbuysell.com - is the best place to find serious customers. But placing the ad costs some money.

hpprod
08-05-2005, 01:36 PM
I'm still working out the details on selling http://www.discountkidsgames.com ... this site sells video games, computer games, software, DVD's, etc. It's populated w/ 20,000+ products and generates income daily. The inventory is updated daily w/ automated feeds from an Inventory control company, and the products are shipped via (2) main Dropshippers ... so there is no out-of-pocket expense for inventory - customer orders at our price, then we purchase at discounted price from dropshipper and have it shipped directly to customer.

I am preparing to post the site for sale, but need some help on valuation. I've looked at many formulas, and the "10x monthly revenue" seems a bit unrealistic because although the gross sales are between $2500-3000/month, the actual net profit is much less - typically anywhere from 15-30%. As a result, a sell of a $50 game would only net about $5-10 profit, as all shipping is done via dropshippers.

How would you recommend valuation? Based on net revenue, or gross revenue, but at a lesser "x/monthly revenue" amount? The site receives approximately 70 unique visitors daily, and has approximately 161 pageviews daily - but it's not the type of site that you'd "surf" around on ... most of the incoming hits come directly to a specific product-detail page from Froogle, Yahoo, or BizRate's merchant referral shopping sites.

Thanks for your help,
Fred