Can I Buy An E-commerce Business? What You Need To Know:

In one of our recent posts, we discussed how investing in an e-commerce business is one of the best decisions you can make today.

NOW…what if you didn’t have to build an e-commerce business from the ground up? That thought makes you wonder:

Can I buy an e-commerce business?

The short answer is YES, you can buy an e-commerce business and skip the slow start of building a store from zero. You inherit a business that already has products, customers, and sales, and you take over running it. The price usually depends on the profit it makes, and you MUST check essentials like its finances, suppliers, and traffic to make sure it’s worth the cost.

In this article, we’ll take a look at investing in an already established business based on our 3+ years of experience, how much it costs you, whether it’s a smart move, and more.

What Does Buying An E-commerce Business Mean?

Buying an e-commerce business means you purchase a shop that already sells online. It could be a brand, a website, or an account on a marketplace like Amazon or Shopify.

When you buy the business, you simply take over its orders, its customers, and its systems. This way, you skip the steps of building a shop from zero.

The cost you pay for the e-commerce business is based on the earnings it makes, its traffic, and its stock.

However, keep in mind that buying an online store also means taking on any risks it has. So you should take your time to check every part of the business to ensure you don’t inherit any existing problems.

Why Do People Buy E-commerce Businesses?

People buy e-commerce shops to skip the lengthy and daunting start-up phase. They do not want to go through the headaches of building traffic or testing products.

And most importantly, they want to reduce the risk of failure.

A recent study by Marketing Signals, Forbes, and The Huffington Post shows that 80 to 90% of new ecommerce stores die within the first few months or first year.

Thus, the SUREST way to escape this hard reality is to buy an already established business.

People buy an online shop that already earns money. A bigger site can bring in thousands of dollars each month in profit.

People also buy established stores to enable them to grow faster. This is true given that growth can take years if you’re starting from scratch.

Overall, many investors see buying a ready-to-run business as a way to move quickly. It still takes work, but you start with a base.

Related: E-Commerce Passive Income: Your Ticket To Freedom?

How Much Does It Cost To Buy an E-commerce Business?

The cost of an e-commerce business usually depends on how much profit it makes each year.

A common industry guideline is to pay 2-3x the annual net profit.

For example, a profitable online store that earns $50,000 a year after expenses might be worth between $100,000 and $150,000.

Some slower-growth stores might sell for just one year’s profit, while fast-growing or highly desirable niche stores can sell for four to five times profit.

This “multiple of profit” rule is only a starting point.

BEFORE you settle on a price for an e-commerce business on sale, you should still check the actual numbers closely.

This is exactly what to look for:

• Ask for verified bank statements, detailed sales reports, and ad performance data.

• Review traffic sources to see if customers come from stable channels.

• Check supplier contracts to confirm reliability and prices.

• Read customer reviews to spot service or quality issues.

This careful and in-depth review will help ensure the profits shown are real and repeatable.

What Should You Check Before Buying An E-commerce Business?

Before you buy an e-commerce business, we always advise you to check the following FIVE KEY areas:

1. Check The Numbers

Ask for at least 12 months of clean financial records. Review revenue, expenses, net profit, and cash flow.

Request access to key dashboards like Shopify, Amazon Seller Central, or Google Analytics so you can confirm sales and traffic data.

You want proof of real orders, real customers, and healthy profit margins.

2. Study The Traffic Sources

Find out if customers come from ads, search engines, social media, or repeat purchases. Each source has its own risks.

Paid ads can get more expensive overnight if competitors raise bids. Search traffic can drop after a Google update. Social media reach can change if platform rules shift.

A store with diverse traffic is safer than one that relies on a single channel.

3. Review The Product Supply Chain

Identify the suppliers, their shipping times, and product quality. Ask for contracts, price lists, and email records.

If a supplier stops production or raises prices sharply, your business could lose sales or profit.

4. Check Customer Satisfaction

Read the store’s post reviews to see if buyers are happy. Look at return rates—high returns cut into profit and may point to poor product quality or misleading marketing.

5. Confirm Legal And Tax Matters

Ask the seller for proof of trademark ownership. Check for past or ongoing lawsuits. Make sure taxes are up to date. Many buyers hire a lawyer to review these details for extra protection.

How Do You Value The Risk In E-commerce Business Acquisition?

Every e-commerce business comes with some level of risk, and part of your job as a buyer is to measure how serious those risks are.

Always, always keep in mind that:

• Website traffic could drop if ad costs rise, search rankings change, or social media reach declines.

• Suppliers might stop working with you, delay shipments, or raise prices.

• Customer complaints and high return rates can damage profit and the store’s reputation.

A SAFER business usually has multiple traffic sources, dependable suppliers with written agreements, low return rates, and a steady base of repeat customers.

Riskier businesses often rely heavily on a single ad channel, one supplier, or have poor online reviews.

You can still buy a higher-risk store, but you should expect more work and have a clear plan to address each weak spot.

Understanding these risks in advance helps you avoid surprises and decide if the potential reward is worth it.

How Do You Get Financing To Buy An E-commerce Business?

If you have enough cash on hand, the simplest option is to pay for the e-commerce business outright.

If you don’t, there are several financing options to consider:

• Some banks and credit unions offer small business loans specifically for acquisitions, though they may require strong credit and a detailed business plan.

• Another common option is seller financing, where the seller agrees to receive part of the payment over time instead of all at once. This can make the purchase more affordable and sometimes shows the seller’s confidence in the business’s future performance.

• You could also explore online lenders or government-backed loans, such as those offered through the U.S. Small Business Administration (SBA), which can cover part of the cost.

Whatever financing option you choose, make sure your projected profits can cover the loan payments even if sales drop after you take over.

This protects you from unexpected financial strain.

What Happens After You Buy The Online Store?

Unlike what most people tend to believe, owning an e-commerce business is not hands-off. You still need to perform a set of tasks daily to keep things running smoothly.

Here’s a quick list of tasks you need to continue doing after assuming ownership:

• You take over all operations, including managing advertising campaigns, keeping track of inventory, and responding to customer questions or complaints.

• You’ll need to maintain the website, update product listings, and make sure payment systems work smoothly. Adding new products can help keep the store fresh and attract repeat buyers.

• Search engine optimization (SEO) should remain a priority so the site keeps ranking well and attracting organic traffic.

• You’ll also need to track your key numbers—sales, profit margins, ad costs, and return rates. This will help you spot trends and make quick changes.

Many new owners report that it takes about six months of focused work to match or exceed the profit the previous owner achieved.

Success comes from active management, not from leaving the store to run on autopilot.

Is It Smart To Buy An E-commerce Business?

Before you decide to buy an existing online store, we always advise our clients to evaluate their skills, time, and finances.

Running an online store requires knowledge of online advertising, search engine optimization, product inventory management, and customer service.

If you already understand these areas, you may be better prepared to take over an existing business.

You also need the time to manage daily operations and the flexibility to solve problems quickly.

Financial stability is important—having savings or extra capital can help you handle drops in profit, unexpected expenses, or seasonal slow periods.

If you’re completely new to e-commerce, it can be risky to jump straight into a purchase.

In that case, you might start with a small, low-cost project to learn the basics.

This hands-on experience can give you confidence and reduce mistakes when you eventually buy a larger, established store.

What Can Go Wrong When Buying An E-commerce Business?

Several problems can appear after buying an e-commerce business. Knowing these problems in advance can save you a lot of headaches.

Here are the most common problems to keep in mind:

• Financial records may not be accurate, and some sellers might show inflated sales or hide expenses.

• Website traffic can also drop suddenly if ad costs rise, search rankings fall, or social media reach declines.

• Suppliers might fail to deliver products on time, increase prices, or go out of business.

• Sometimes, seasonal demand can fade, leaving you with slow months and excess stock.

• High return rates or customer complaints can cut into profit. In some cases, scams target new owners, such as fake orders or chargebacks.

• If you used a loan to buy the store, falling profits can make repayment hard and create financial stress.

• In the worst case, you might own a business that stops earning altogether.

Pro Tip: You can avoid all these problems by conducting a full due diligence before closing a deal. Also, consider hiring a broker, accountant, or lawyer before closing the deal.

How Much Money Is Needed To Start An E-commerce Business From Scratch?

If you’re still undecided on whether starting vs buying an established e-commerce business is for you, this is your part…

Starting your own store is often cheaper upfront compared to buying an existing business. But it takes you more time and work. The cost depends on how you set it up.

If you use a platform like Shopify, you’ll pay the following:

• About $39 per month for the basic plan

• A good theme might cost $100 to $350 one time, or you can use a free one.

You might spend $500 to $2,000 on initial marketing like Facebook ads, influencer promotions, or Google ads.

If you hold your own inventory, you also need to buy stock, which could be $1,000 to $10,000, depending on your products.

If you go the dropshipping route, you can start with as little as $500 to $1,000 for software, website setup, and initial ads—since you don’t need to buy products in advance.

A 2023 Shopify report showed that most small online store owners spend between $2,000 and $10,000 in their first year, depending on how much they invest in inventory and marketing.

Starting can be cheaper than buying, but it can take you months (sometimes years!) before you reach the same level of sales as an established store.

Can You Buy An E-commerce Business

Buying an e-commerce business can be a smart move if you choose carefully. Prices range from a few thousand to hundreds of thousands of dollars, depending on profit and growth potential. Buying an existing business saves you time but brings risk, so always check finances, traffic, suppliers, and legal details first. Starting from scratch costs less but takes longer, and there’s a risk of failure. With the right skills, budget, and preparation, taking over a working store can be a faster path to online income.

If you’re serious about owning a profitable e-commerce business, we can guide you through the process. We’ll help you find one that fits your budget, check it thoroughly for hidden issues, and choose a store with strong growth potential. You’ll be set to grow it fast and sell later for a healthy profit.