Buying an online business

So some businesses are retailers and/or wholesale and also have an online presence, others are online with their own stock in storage and then there is the 'direct fulfillment' category.

The thing with the online only is I guess you are really buying their efforts in setting it all up plus any goodwill of repeat business and reputation (eg eBay feedback score)

One important aspect would be the contacts for supply because they may not be easily found or established.

Having said that, what is an online business worth? It could all disappear as easy as it started. I see some listed at 2-3x nett profit.

Also what are you getting for your money?
Website, eBay account, supply terms from manufacturers...??

 

Also what sort of due diligence and handover would you get in this situation? If the vendor was running from home are you going to be visiting him for a while?

@Ace in the Hole has experience here I believe?

 

I would be asking what value can you add to the business? How can you grow it beyond what it is now? What’s your vision?

What you can give a business is more important than what you get because no business is automatic, they all take work, effort and visibility

I would be looking of basic setup vs time/cost in setting it up and existng client base

Also how much can it take in growth? Can the systems handle double the size?
10x?
Do you have the experience to alter the systems to suit?