If you’re looking to sell your Shopify store but feeling a bit intimidated, it’s natural.
But worry not. Many savvy entrepreneurs are looking to buy unique and high-performing e-commerce stores. Once you make your offer stand out, you’ll eventually attract the right buyer for your needs.
This blog post will show you how to sell a Shopify store for maximum value without doubting yourself.
Selling takes time and involves a process. Here’s a quick summary to set your expectations before we get into details. First, you must do your homework and clarify a few things for yourself and your potential sellers:
Once you go through this preparation stage, the actual steps are pretty straightforward:
Looking for the best M&A experts to maximize the sale? Exitwise is ready to guide you from the first contact. We specialize in helping you interview, hire, and manage skilled M&A professionals.
Selling your Shopify store is more than a business transaction. At Exitwise, we believe it’s a life-changing decision and an opportunity to transition on your terms. So, here are three big reasons to sell:
1. Get an immediate, significant profit: The financial gain is clear and immediate. You can save it, invest in another dream, or secure your family’s future.
2. Lift the burdens off your shoulders: Forget late-night customer emails, urgent supplier calls, inventory management, or keeping up with customer service.
3. Reclaim your freedom: Open up an incredible amount of personal freedom and flexibility. Once you sell your company, your schedule is yours to control.
Selling your Shopify business is like catching a wave — timing it right lets you ride it to the top. While pinpointing an exact “perfect time” is hard, some clear signals like the ones below show when it’s potentially the best time to sell:
High sales reflect success, stability, and profitability. When your Shopify store has peak sales, its valuation is higher and becomes more attractive to buyers looking for a sure bet.
A competitor or investor could make you an offer that surpasses your expectations. If so, you could profitably exit with potentially more favorable terms than when you initiate the sale.
Changes in consumer behavior, new regulations, or tech advancements could make running your Shopify store harder or less profitable. Monitor the market and strategically exit before these changes take effect.
Are you looking to start something new, change your career, or just take a break? When you really want the sale, the whole process feels better and more worthwhile.
The value of a Shopify store depends on its profits, popularity, uniqueness, smooth operations, market position, and legal status. Improving these aspects can:
Here’s what you should know about each aspect:
Buyers want to see more income and higher profits. Regular growth shows your business is stable and has room to expand, which is a big plus.
So, if your store makes and saves a lot of money, show it off and ask for a higher sale price.
Lots of visitors and repeat customers mean your store is popular and well-liked, which buyers find appealing. But where your visitors come from matters, too.
For example, organic traffic is often seen as more valuable because it's stable and costs less.
Good supplier ties mean consistent stock and fair pricing, which are essential for maintaining a competitive edge.
Buyers will be more interested if you get exclusive deals or favorable terms from your suppliers.
A well-established brand or unique intellectual property (such as custom designs, trademarks, or proprietary technology) can significantly enhance your Shopify store's valuation.
It's the difference that sets you apart in a crowded marketplace.
The systems and processes running your store, including logistics, customer service, and inventory management, affect valuation. If they’re efficient, they show your business can easily transition to new hands without missing a beat.
You face less competition when your store dominates a specific niche or has a strong position in a larger market. Also, commanding a specific niche often correlates with robust customer retention metrics and a clear competitive advantage.
This strategic positioning strengthens brand authority and offers potential buyers a sustainable revenue model. The latter is critical for those targeting long-term profitability and growth.
Discerning investors highly value a transparent financial history. So, clear records and no legal troubles make your business a safer and more attractive investment.
If you have a Shopify store for sale, this foundational integrity facilitates smoother due diligence and reassures potential buyers about your business’s stability and future profitability.
The valuation of your Shopify store reflects the strategic advantages and operational strengths we've discussed above. That’s why prices for Shopify stores can vary from a few thousand dollars for emerging ventures to millions for well-established brands with significant revenue.
Typically, a Shopify store may be valued between 2 to 6 times its annual profits. However, this multiple can be influenced by several critical factors:
To determine your Shopify store’s precise value, an expert appraiser should run a nuanced analysis of your annual revenue, profits, and these strategic factors. They will integrate your financials with market trends and competitive standing to provide a detailed appraisal.
Meanwhile, you can use our online valuation tool for a quick preliminary estimate. It will assess your revenue, profit margins, and traffic metrics and give you quick insights.
FURTHER READING:
Want to understand better how much your Shopify store could be worth? Read this guide on how to value an e-commerce business.
Understanding your Shopify store’s worth is just the beginning. Thorough preparation is essential to truly capitalize on its value and secure a higher sale price.
Here are the 10 most essential steps to take at this preparation stage:
TIP: No matter your Shopify store’s size, a checklist for selling your business will help you keep the sale process under control.
Done the prep work and are eager to cash in on your thriving Shopify store? There's an art to maximizing your profit.
First, you have to market your business to maximize its appeal. Once buyers start showing interest, you must negotiate like a pro to get the most out of your sale.
Here’s how to do all that, step by step:
Listing your Shopify store on the right platform can significantly increase its visibility to potential buyers.
TIP: Your choice should consider not just the platform's reach but also how its typical buyer aligns with your store's specific size and niche. So, think about the kind of buyer you’d like to take over your business and choose your platform accordingly.
A compelling listing is key to standing out and attracting buyers. Highlight your store’s strengths, unique selling points, and growth potential.
Use high-quality images and detailed descriptions, and be transparent about your operations and financials.
Want someone who offers a great price? Or are you more interested in someone with the skills and vision to grow your business further? Once you’ve decided on your priorities, you can start looking for a buyer that fits the bill.
Engaging with multiple potential buyers can give you leverage in negotiations and help you find the right match for your store.
Negotiation is where your deal could be made or broken. Be ready to discuss terms, including price, payment plans, and the transition period. Know your minimum acceptable price, but be open to creative deal structures that meet both parties' needs.
While some buyers may opt for a lump sum payment providing a clean, immediate conclusion to the transaction, others might prefer arrangements like:
Selling a business is complex, but having the right team can make all the difference. Rather than going at it alone, surround yourself with people who know the ins and outs of selling Shopify stores. Support from M&A teams, which include skilled investment bankers, attorneys, wealth advisors, and finance experts, can be invaluable.
At Exitwise, we excel at helping you interview, hire, and manage the best M&A team. Learn more about how Exitwise works to maximize your sale’s success and ensure a smooth transition.
When selling your Shopify store, it's easy to get caught up in the anxiety or excitement of the process. However, overlooking specific nuances can significantly impact the outcome.
Here are three not-so-obvious mistakes to avoid:
How you present your store and its potential to buyers can make or break a deal. Do not overlook the need for a professional, detailed listing that shows your store's unique value proposition and future growth potential.
Sellers often focus on getting the best price but pay little attention to the transition plan for the new owner. Do not miss out on the chance to increase buyer confidence and sale price with a great transition plan involving employees and vendors. This way, you’ll smooth the changeover and preserve the business's operational stability.
Intangible assets like customer loyalty, brand reputation, and social media presence are often undervalued. Don’t fail to quantify how much these assets are worth so as not to leave money on the table.
Ready to sell your Shopify store? Here are some frequently asked questions to take into account:
Online marketplaces are common choices. For your Shopify store, Shopify’s Exchange Marketplace is one of the best places to begin with. However, this is where most sellers go.
Direct sales through your network/industry contacts, business brokers, or M&A advisors might help you get a better deal. Exitwise enables you to connect with experienced M&A advisors who will guide you in the best direction and help you sell successfully.
Selling platforms are online marketplaces where store sellers and buyers flock. Alternatives to Shopify’s Exchange Marketplace include Flippa, with a broader audience of tech and digital entrepreneurs, and BizBuySell, where both e-commerce and traditional buyers hang out.
You’ll need detailed financial records, traffic and sales data, supplier contracts, legal documents, and operational manuals to sell your Shopify store.
These documents prove your store's value and ease the due diligence process.
Yes. You can sell a Shopify store with outstanding loans or debts, but these must be fully disclosed to potential buyers. The sale proceeds are often used to clear these obligations, or the buyer agrees to assume them.
Transferring your Shopify store’s ownership involves settling any outstanding balances, removing personal information, and transferring the store through Shopify’s platform. It is also important to hand over associated accounts, like social media and email, to the new owner.
Selling your Shopify store opens the door to endless possibilities, whether you're seeking financial prosperity, stress relief, or a new adventure. By marketing your store effectively on the right platform, negotiating wisely with the right buyer, and getting expert help along the way, you can navigate the sale process with confidence and ease.
Our team at Exitwise is here to guide you. Reach out to us, and we’ll help you hire experts to find the right buyer and get the exit you long for.
Let Exitwise introduce, hire and manage the best, industry specialized, investment bankers, M&A attorneys, tax accountants and other M&A advisors to help you maximize the sale of your business.
