In a previous article I already discussed how you can start quickly by buying an online store. Today’s article will discuss a few things you should pay attention to when you decide to acquire an online store.
1. Take your time during both the search and the purchase
Perhaps the most important tip. When you decide today to dare the search quest take a month for it. You don’t have to buy the first online store available. Don’t forget: you can only spend your money once!
2. Check the age and the statistics
How old is the online store? Many online stores that are offered online are made purely for the sale. They are often just a few months old.
An online store that has been active for a number of years has of course much more value (also when the turnover is similar) than an online store that is a few months old.
A fraudulent seller can relatively simply add extra sales or accounts to the online store. Ask therefore always access to the Google Analytics account. This will give you an insight into where the visitors come from.
When 80% of traffic originates from one site you should ask yourself whether that is correct. Imagine that you take over the online store and you directly loose your biggest source of visitors…
3. How high does the online store rank in Google?
Every online store can relatively simply buy traffic or even get it from friendly website. You will not score a high position in Google by dealing with friends – this can be achieved by hard work alone.
The positions in Google therefore reflect in nine out of 10 cases whether an online store is successful or not.
Often the seller writes that s/he didn’t do anything in terms of Seach engine optimization yet and that with a little effort you will get your site in the first position. Well… That’s not the case!
And don’t forget: a website on the second page in Google is just as valuable as an ad in the newsletter of the local eldery home!
4. What is the size of the customer base?
Always check the customer base. How did these customers get into the file? Did they all buy something or are there also “customers” who just registerd an account.
Don’t forget to check whether you may mail these customers. A high amount of customers is great but when you don’t have a valid opt-in for the newsletter you can’t do much with those customer data 😉
5. Pay 10 times the monthly profit
The hardest part of every sale for both the seller and the buyer is defining the value of the online store.
A rule of thumb you may use to determine the height of your bid is Max 10 times the monthly profit for a relatively young online store.
In ten months time you can often build up an online store of a similar value yourself.
Pay attention: It is only a rule to give a possible indication of the price!!!
An online store selling products related to a national football team has outside of world and regional cups a much smaller real value. But it can sometimes be interesting to pay extra for a cool domain name. An online store could also be worth a lot more in your hands than in the hands of the seller…
When I would for example buy an online store selling parasols than I could of course use my customer file from the hammock store to direct further traffic to the parasols store and vice versa 😉
6. Never name your price first
Doesn’t the topic/ad name how much the online store will cost? In that case ask the seller first what price s/he thinks of. Don’t put your cards on the table first.
Maybe s/he wants to ask 5.000 and you were going to offer 7.000. That would be a waste of money!
7. Offer 50% of the selling price
Of course you don’t want to pay too much during the online store acquisition. Therefore offer 50% of the price asked. You will find out soon enough whether there is space for negotiations. By starting with a price that is (too) low you will have leeway to place a higher bid if necessary.
When your first bid is rejected, then ask the seller why s/he rejected the offer and what price they were thinking of themselves. Often s/he comes with a lower price already!
Do you have good tips one should pay attention to while buying an online store? Leave your reaction here!