E-commerce Business for Sale: The Benefits
Whether you’re looking into buying an e-commerce business for sale because you’re passionate about building up a brand or whether you’re in it for the money, it’s still a good investment. Buying an online e-commerce business is a shortcut to entrepreneurial success compared to building your own business from the ground up. This article will discuss why buying an e-commerce business is better than building one and how much an e-commerce business will cost potential buyers.
28 March 2022
Whether you’re looking into buying an e-commerce business for sale because you’re passionate about building up a brand or whether you’re in it for the money, it’s still a good investment. Buying an online e-commerce business is a shortcut to entrepreneurial success compared to building your own business from the ground up.
This article will discuss why buying an e-commerce business is better than building one and how much an e-commerce business will cost potential buyers.
Why Buying is Better Than Building an E-Commerce Business
Besides the fact that buying an already up and running business is much easier than building one, there are 3 other reasons why buying is always better than a building:
Skip the Startup Period
The best part about buying an e-commerce business is the fact that you are already 10 steps ahead and past go! When building a brand-new business from scratch there is a much bigger chance of failure. Buying a business that’s already struggled through the startup phase, is more likely to succeed.
Access to Immediate Profits
Acquiring a company that is already up and running and making sales, gives you access to those sales when you take over. This means from the first day of your purchase, you already get a return on your investment.
Purchasing an already existing business means that you have access to a team filled with already clued-up employees. This means you’re buying into a more hands-off business and a passive income.
How Much Does an E-Commerce Business Sell For?
The price of an e-commerce business will depend on a business's valuation. A business valuation is a process of determining a company's economic value in order to give owners an unbiased appraisal of its worth. The most common business valuation method begins with taking a business's yearly sales or earnings, which are then multiplied by an industry multiple.
Let’s dive into two of the most critical drivers for valuing an e-commerce business:
- Age of the Business: Before buying an e-commerce business consider looking at how long the business has been up and running. It's not advised to purchase a business that is less than a year old. You want to make sure your business has shown steady growth.
- Returns and Refunds: Refunds and returns are a reality for every e-commerce business. Returns and refunds are approximately 10% higher for e-commerce stores when compared to brick-and-mortar shops. As a consumer, the opportunity to return a product after not being completely happy is excellent news but for an e-commerce owner, this can eat into your profit. Before buying an e-commerce business take a closer look at the store's past returns and refunds.
Online Stores for Sale
If you’re looking to buy an e-commerce business, or even list your business for sale, visit the Business for Sale website! Business for Sale is the perfect platform to ensure that you’re browsing properly valuated business within the sector you’re interested in.
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Franchising isn’t always the cheapest way to start a business, but luckily there is a growing number of franchising options in South Africa that don’t break the bank. Franchising is easily one of the safest ways to start a business as you already start with a reputable brand name and access to loyal customers.
Finding affordable franchises in South Africa can be very easy, thanks to Business for Sale. We already know what the benefits of owning a franchise are, and so naturally, the next best step is to find a franchise that suits your budget. Cheap food franchises in South Africa can be a little tougher to come across, as food franchises tend to be pricier. However, there are other franchises that can be bought into! Most Affordable Franchises in South Africa There are different categories that make for brilliant, affordable franchise options.
Independent grocery stores may find it a challenge to make a profit. Grocery stores make their profit based on volumes of customers. The Covid-19 pandemic put some pressure on supermarkets when everyone panicked about necessities like toilet paper. Supermarkets had to keep up with the demand, but also struggled under the regulations that prevented the sale of other regular items. Luckily, South Africa’s strictest lockdown levels have abated, giving most South African businesses the opportunity to pick up from where they left off.
Unlike many other products for sale, alcohol is one that is not seasonal. People consume alcohol all year round, and liquor sales have yet to drop due to external factors that would typically affect other industries. This makes it a reasonably safe bet to invest in, and become a part of.
Being an entrepreneur allows women to freely manage their own time and create a balance between family and work. ActionCOACH South Africa is offering women the amazing opportunity of running their own profitable and scalable Business Coaching practice. If you have a passion for business and for helping others, a track record of success and are looking for a way to utilize your skill set through a renewed breath of life, then business coaching might be for you! We offer the template into the market, resources, tools, support and professional training you need to succeed in business. Read our blog to find out Why Women Are Better Business Coaches.
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Choosing an existing business for sale is the easy part; by the time you’re considering buying a business, you already have an idea of which industry it will be in, its size, type, and all of the other particulars. The more complicated part is when it comes to applying for finance to buy a business. Very few people have the capital to use cash to buy the business, so it’s important to understand the ways and means of borrowing money and still making those dreams come true!
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