If you own an Ecommerce business, chances are you have asked yourself: “I wonder what my Ecommerce business is worth?”
Your not alone and good news is that their is a growing business for sale market for buying and selling e-commerce businesses. You may not be ready now, but at some stage you are going to want to sell your website. Our friends over at Digital Exits have an excellent broker service where you can get a free valuation and they will let you know what your business is worth. They also just wrote a cool article on what makes a million dollar ecommerce business here and choosing a website broker.
If you aren’t ready for a formal business valuation, check out the awesome infographic they created showing you what e-commerce businesses are selling for. Just a note. The term multiple means the multiple of earnings that you ecommerce business will sell for. For example let’s take our friends over a Beard brand that is into this beard oil product and might make $100,000 profit per year (this is just a guess). Their business is going to sell for a multiple of 2-3 times. Which means the sale price is going to be around $200,000 to $300,000.This will help you decipher the infographic below: