Meta Description: this article aims to educate the user on some popular and prevalent ways of successfully selling a Shopify store
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While the reasons might differ, most entrepreneurs and business owners will concur, that selling their Shopify store online was one of the hardest decisions of their lives. They will also agree that it can, at times, be a confusing and overwhelming decision, especially due to the plethora of options available. It can be a daunting task to find the right medium and the right buyer while selling a Shopify store. One of the big desires for any entrepreneur is to make the sale a smooth, hassle-free and rewarding experience. It is extremely important to identify the reasons for selling and future aspirations with the capital gains that you will receive. These factors, alongwith the scale and size of operations, business worth, revenue, ownership structure, creditors, suppliers and sourcing network also play an integral part in identifying the right channel to engage for making the sale
Let us explore some of the different ways to go about doing this while ensuring a profitable exit from your Shopify business.
Marketplaces
Online Marketplaces are quick stop avenues which list businesses for sale. Consider this as an online classifieds directory. This may be the right option for solopreneurs with smaller businesses and easily transferable inventory who are willing to put in the effort themselves and avoid paying commission costs. Purchasing a Shopify business is a great opportunity for the buyer to acquire an existing successful business and leverage the established customer base and supplier network.
Brokers
A broker may be an individual or company assisting you through the course of selling your Shopify store. This method is usually apt for first time business owners or those who may not be well versed with the selling process. Small and medium sized businesses are ideal candidates for using this mode of sale. Another advantage of brokers is that they may provide the option of financial security via Escrow services thereby making the transfer of the business smoother with lesser risk.
Acquirers
These are niche companies with vast experience, that offer a gamut of services for the entire process to sell your Shopify store. Right from brand valuation to the completion of sale, transfer of inventory and all the legal and contractual aspects in between are duly taken care of in a streamlined manner. These acquirers may further go ahead and integrate your business into their omni/multi channel platforms as well. They offer several collaborative and innovative ways of completion of the sale and usually invest heavily in technology based platforms. Hence, their operations are mostly standard and optimized with a seamless transition.
Investment banks and Equity Firms
This is ideally suited for large businesses with bigger profits, high scale of operations and ROI. They can approach VCs, Private Equity Firms or Investment Banks to pitch for the sale of their Shopify store. Their normal operating procedure is to make the purchase with the amount raised from the investment community and other saleable commodities.
Regardless of the option which fits you the best, there are some common yet critical points which you must consider and prepare for before selling your Shopify store. Remember, you will get superior offers when the buyer perceives less risk and uncertainty in your business with an expectancy of higher returns on their investment. This is a quick ‘readiness checklist’ to help you achieve the most out of your sale.
- Reasons for selling
- Proper valuation of your business and brand including a detailed risk profile
- Setting a Minimum Price Threshold
- Key financial statements
- Shopify performance details like review scores, returning customers, revenue & traffic information, order value, traffic diversity, etc
- Ease of transferability of your business
- Optimization and consolidation of operations and inventory can bring a positive impact to your business worth
- Social media traction is another low hanging fruit to achieve higher brand recognition and increase digital reach before selling
In Summation
Selling your Shopify store can be both unnerving and exciting. Not just for the seller, but also for the buyer. It is your hard work and toil. The seeds you had sown are ready to be harvested now. The prerequisites of reaping this bounty are to find the right buyer, for which you need to find the right medium of sale. We hope this article provides you a handy insight into the most common ways to go about doing so. It is imperative to absorb and reflect on your specific needs and reasons to be able to choose the perfect fit for you in this journey. The ‘readiness checklist’ is also here to serve you as a reminder of some of the crucial aspects which will make the process more rewarding for you.
