Selling a store on Shopify is not as easy as it seems! You have to succeed in finding a buyer , define the right price and of course think about transferring all the data related to the store such as the facebook page and the advertisements to the new buyer! Here is a complete guide to help you sell your Shopify store on the different platforms with the mistakes not to make! This article will also help you determine the criteria to buy a Shopify store or not!
Why sell a shopify store?
Several reasons can motivate the sale of a Shopify store.
Let’s start with the good ones:
- You want to make a superb added value on your shop and offer yourself a house, an apartment, a vacation…
- You want to change your project and embark on another field because you have smelled an excellent opportunity.
Generally, buyers are suspicious and ask themselves “why is this person selling such a successful business? This shop is awesome! There must be eel under rock “. However, our days are only 24 hours long and an entrepreneur is motivated by challenge and opportunity. This is why there can be very good opportunities to buy on the internet because the creator of the store simply wants to do something else and knows full well that he has the potential to make even more money. However, this scenario does not even represent 10% of sales.
The rest of the sales are made for the wrong reasons:
- The shop is not working and we try not to sink with the ship by saving what can be saved.
- The entrepreneur sensed that the shop wouldn’t work, but wanted to earn some money from the time he spent on the shop.
- The mounted shop is simply a nice scam with bogus or doctored information and the seller disappears into thin air (a very rare case on platforms certified by Shopify).
- The seller has made a big mistake and is leaving you with bad debts, unsatisfied customers and refunds. 💎
Never forget that the store is sold by marketing professionals or almost. The offer thus seems very attractive even if the content is not necessarily so. Also, never buy a shop if you’ve never made a shop before. It’s essential to understand how you can create a shopify dropshipping or ecommerce store by putting your hands in the dough!
Selling a shopify store is selling a set
Many sellers and buyers forget it, but selling an online Shopify store is selling a set of data.
The seller agrees in most cases to provide with the sale:
- The facebook page that is linked, the instagram account, the pinterest account … In short, all accounts on social networks!
- A marketing analysis , a report on what works and what does not work at the advertising level.
- A history of transactions made, emails exchanged with customers.
- Advertising accounts on Facebook, adwords… The mailbox…
- Advertising templates, visuals, logos, contracts with partners.
In short, you have to imagine that all this information must be transmitted. You have to change all the passwords and manage to find your way around, understand if there have been automations in place, email loops… The seller must create a precise document indicating all the links, networks with all the identifiers and passwords! This is why I advise you to always create a unique password that is different from your personal password when you create a store. You will save a lot of time when selling!
Selling a shopify store is therefore not simply putting a link on an exchange platform. It’s a lot of documentation and adaptation work if you really want to do things right (and few people will buy without this information).
Where and how to sell a shopify store?
Exit the idea of selling your shopify store directly in a facebook group with a dubious link, unless a contract is made! There are many platforms that allow you to sell your dropshipping store . Of course, the platform will take a commission on the transaction, but that makes it possible to secure the buyer and the seller!
The process is simple, you need:
- Register on the platform or marketplace.
- Fill in the information on the shop, the turnover etc.
- Provide a price that we will calculate together and of course, provide proof of the figure achieved, the strategy and everything listed in the description.
After analysis by the platform, the store is put up for sale. Some online shopify store sales platforms do not go through the verification process . To submit your dropshipping store for sale, here are some sites:
- The most well-known online store marketplace is Shopify Exchange .
- You can also search on Flippa .
- Directly on facebook dropshipping groups in the event that a contract is clearly defined!
Everything then starts with a contact, presentation of evidence and potentially a sale! Beware of the curious who simply come to look at the winners of the shop and try to recover your advertising strategy…
How to estimate the price of a shopify store?
This is the big question that has been on your mind from the start! How to calculate the resale price of a Shopify store? There are so many things to consider. If only the time invested, the turnover achieved or the time spent increasing the perceived value of the products, the creation of the logo… In short, when you sell a Shopify store, you have to value everything that has been done!
We thus separate the work invested in the shop into 3 main parts to make its calculation:
- The turnover achieved and the profits as well as the recurrence of payments, the growth of the turnover… (to know if the market is stable, punctual, recurring).
- The time invested (which we will neglect otherwise the price will explode).
- Investments/amortizations such as the creation of a graphic charter , a visual identity, a logo or even packaging!
We will thus obtain a formula of the type: Turnover X months of visibility + time invested in € + investments = sale price.
To calculate the selling price via the turnover , it is certain that a shop which has a lot of visibility (and seniority) will be able to increase the “month of visibility” factor. A store that is too young cannot increase this factor.
Example: your shop was created 3 months ago, it generates 1000€ in total over 3 months. Your shop can potentially have an additional 3 months of visibility. You generate €333 per month on average (1000/3 = 333).
- So we have 3 months of liabilities + 3 months of visibility multiplied by 333. So 6 X 333 = €1998 for a high price.
- Except that there is the profitability factor! If your store is currently not profitable, the price of 1998€ will be too high. If the shop has a profitability thanks to a margin of 30%, the shop becomes interesting for the buyer but still a little too high!
- So we take 30% X 1998€ = 599€.
A standard resale price would be 599€. We could add on top of the time invested and charge it but you can imagine that we can’t afford it on a small shop. Similarly, we could add the purchase of the logo , the graphic charter, but at this stage, it is absolutely unimaginable. On the other hand, we can enhance all this to raise the price a little if the shop is pretty, well designed, etc. The more turnkey the solution, the more you can increase the base price.
Once you have obtained this price, I invite you to increase by 30% (599€ thus becomes 779€) thus allowing you to have a margin of negotiation and to be able to lower the price at your convenience 🙂 Because everything is negotiated and your buyer knows it very well!
Other factors may come into play such as market growth, etc. In the world of start-ups, we are used to making forecasts over 3 to 5 years to show the potential of a project. The calculation formula I just showed you is simple but effective! But there are dozens of others, no one is really in agreement with one or the other method. For the sale of a larger store, we can trust the exchange experts or make a real forecast while managing the growth and market potential. On large projects that generate several tens of thousands of euros or hundreds per month, we will entrust the sale and the estimate to an expert. For stores with several thousand euros in turnover, the method of calculating the price of the store is perfectly valid 🙂 good luck to you!
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