Ecommerce sells on a multiple of earnings with the multiple set by how durable those earnings look. Buyers verify traffic sources, supplier relationships and account health before they believe the profit, because all three can vanish faster than in a physical business.
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Traffic and its concentration
A store whose customers arrive through one paid channel is priced differently from one with organic search, an email list and repeat purchase behavior. Buyers will ask for analytics access, not screenshots, and will look at the trend by channel over years rather than months. Diversifying the traffic before a sale changes the multiple, not just the revenue.
Suppliers and inventory
Whether your supplier agreement transfers, whether you are one of many customers or a favoured one, and how much stock is included and at what value. Inventory is usually a separate negotiation from the business price, and obsolete stock is written down. Manufacturing exclusivity, where it exists, is one of the most valuable things you can evidence.
Account and platform health
Marketplace account standing, suspension history, policy warnings and whether the account itself can transfer at all. On some platforms the account is not transferable and the buyer is buying the brand and the supply chain, which changes the structure of the sale. Establish this before marketing rather than during diligence.
Other questions people ask
What multiple does ecommerce sell for?
It depends on size, growth and traffic quality, and any single figure would mislead. Durability of the traffic moves the multiple more than the size of the profit.
Do I sell the inventory too?
Usually, valued separately at cost for saleable stock. Agree the valuation method in the letter of intent so the count at closing is arithmetic rather than argument.
Who buys these businesses?
Individual operators and small funds through the online marketplaces, aggregators where the brand fits their portfolio, and occasionally a strategic buyer in the same category.