Ecommerce business brokers: choosing between the platforms

Ecommerce brokerage is the rare corner of this market where fees are published, which turns the question from what will this cost into how much of the work do I want done for me. The platforms differ far more in service level than in price.

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Self service against full service

A listing platform charges a small fee and leaves screening, negotiation and diligence coordination to you. A full service brokerage verifies your numbers, writes the presentation, screens buyers, negotiates and manages the migration. The published rate difference reflects that gap, and comparing the rates without comparing the work compares nothing.

What the published bands look like

Of the US firms read at their own pages for this site's record, the online platforms are the ones that print rates. Flippa's success fees start from 5%. Acquire.com prints three bands: 8% below a $250,000 asking price, 7% to $1m and 6% above. Empire Flippers prints a ladder starting at 15% up to $700,000 and falling above that.

Choosing

A clean business with diversified traffic and simple supply can carry a self service listing. A complicated supply chain, an untransferable platform account or a story that needs telling is better served by a firm that will tell it, and the difference in outcome usually exceeds the difference in fee.

Questions people ask about ecommerce business brokers

Do these platforms verify my numbers?

Most verify revenue and profit against source data before listing, which is a benefit if your records are clean and a delay if they are not.

Do they reach strategic buyers?

Partly. They concentrate individual and small fund buyers; strategic acquirers usually have to be approached directly.

Is inventory included in the fee calculation?

Ask. Whether the fee applies to the inventory element as well as the business price is a real difference between proposals.

Sources

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