Selling your web shop… sometimes after much deliberation you are just ready for it. You put your heart and soul into your company for years on end, hours spent researching things, compiling collections and sending orders. And now the cake is just finished. Time for a new phase, for a new challenge, a new plan or simply: rest.
The first question that may haunt your mind is: "What is my webshop worth?". Unfortunately, that answer is not easy to give and it depends on many factors. Moreover, you can determine the value of a webshop in many different ways. Below you will find more information.
Do you want to buy a webshop?
Then you are in the right place. Are you looking for a great company that you can step into right away, a well-thought-out concept with potential or a fresh webshop that you can use in all directions? We are often the first to know about webshop owners about their sales plans. Check out our blog or just contact us. Who knows!
Do you want to sell a webshop?
What should you take into account when you start selling? In order to determine a fair value, you must take into account the following:
- number of unique visitors per month
- number of active customers
- average number of orders per month
- average spend per order
- annual turnover (average over 3 years)
- profit before tax (average over 3 years)
- any available stock
- registered domain names
- registered (image) brands such as the logo
- the webshop software used
- investments that have been made
- social media reach (followers)
- social media vanity urls
- newsletter file
- branding/house style
Webshop valuation and a formula
It is often advised to use 2 to 3 x the annual profit (average of the last 3 years) as a guideline. That is possible for a first rough estimate, but it is a bit short-sighted.
This is one of the many formulas to roughly calculate the value of your webshop:
2 x profit (average of 3 years)
0.8/1.2 times turnover (average of 3 years)
= subtotal : 2 = result
There are more factors to consider. For example, a good image and a strong domain name have 'brand added value' that you can put a price on. How about these variables:
- what does it even cost to build a new shop from scratch?
- ranking (what does it cost to get close to that?)
- is there a Google Adwords campaign behind what does it cost to build with the same 'history'?
- reputation, that is the most important!
To give a slightly more concrete answer: roughly speaking, it makes sense to keep 2 to 3 times the annual profit (of the average of the past 3 years) as a guideline. After all, profit is what it's all about when running a business.
Ready to sell?
If you are going to sell your webshop, SYSO makes a nice network available for that. In our own search to find a party to sell our own webshop Applepiepieces (in 2018) we did not find what we were looking for. Often it came down to a scant and anonymous entry where you disappear as a number in an unclear anonymous list or companies that charge between € 5,000 to € 10,000 + a percentage of the sales price for their services.
Selling your webshop: get started!
Would you like to save some money? Then do a Powershot coaching hour .