What's The Cost of Buying An E-commerce Business?

BEFORE you start searching for an e-commerce business to buy, the most important thing you need to know is how much they actually cost.

Without that, you can waste weeks chasing deals that don’t fit your budget.

So, how much does it actually cost to buy an e-commerce store?

A small, no-frills store that’s been around for a while might sell for just a few thousand dollars. A larger business with steady revenue, valuable inventory, and a strong brand can run into the tens or hundreds of thousands. The cost depends on factors like how much money the store makes, the platform it uses, how professional the site looks, and how good its marketing is at bringing in sales.

In this article, we'll break down what drives those numbers, how people value an e-commerce business, and where to find these businesses for sale.

Plus, we’ll also share tips on how to spot ones that are undervalued.

Typical Price Ranges of E-commerce Businesses for Sale:

As we have just hinted in the intro above, an existing ecommerce store can cost you anywhere from a few thousand dollars to tens or hundreds of thousands of dollars.

Some stores even sell for millions of dollars!

Here are rough ranges of what people pay for different kinds of e-commerce businesses. These depend heavily on profitability, history, traffic, etc.

• Small online stores with low profit (say net profit $5,000–$20,000/year) might sell for something like 1.5× to 3.5× SDE. That means if the yearly earnings are $10,000, you might expect to pay $15,000–$35,000.

• Mid-size stores with more stable earnings ($50,000–$200,000/year in net profit), multiple traffic sources, some automation, and low owner hours tend to be priced higher, maybe 3× to 5× SDE.

• Large or high-growth e-commerce businesses (strong margins, scalable operations, recurring revenue, minimal owner involvement) can fetch 4×–6× EBITDA or even more, sometimes when private equity or strategic buyers are involved.

Recommended: Buying An Existing E-commerce Business Checklist

Factors Influencing the Cost of An Established E-commerce Store

PROFIT is the first and most obvious factor influencing the cost of an existing e-commerce store.

Buyers usually value a store based on how much money it earns in a year.

A store that makes steady profit month after month will attract a higher price than one with random spikes or long, slow periods.

According to FE International, stable e-commerce businesses often sell for 4× to 6× their yearly profit (SDE or EBITDA), while riskier ones fetch much less.

Other KEY factors include:

• Traffic sources: A store that depends only on paid ads poses a higher risk than one that gets sales from organic search, social media, and returning customers. Buyers will pay more for diversified traffic because it lowers risk.

• Brand strength: If a store has positive reviews, a good reputation, and loyal customers who keep coming back, it is worth more than a store with little recognition.

• Owner involvement: If a store runs mostly on automation and requires only a few hours of work per week, it will likely sell for more than a store that requires the owner to manage every task by hand.

• Inventory and supplier contracts: If the store includes reliable suppliers, good contracts, and valuable stock, that raises the value. But if the business relies on one supplier or has excess inventory that may be hard to sell, buyers often lower their offers.

NOTE: Geography and niche matter in the pricing of an online store. Stores based in niches with high demand, low competition, or that sell globally may cost more than those restricted to small local markets.

Recommended: The 5 Most Profitable E-Commerce Businesses Revealed

Where To Find E-commerce Stores For Sale

There are many places online where you can buy an existing store. Some of the most popular options to consider include:

• Flippa: This is one of the most common marketplaces. It has many smaller and mid-size e-commerce businesses listed, often at lower price points.

• Empire Flippers is another top option that lists vetted businesses, usually in the mid to higher range.

• FE International works more as a broker, handling larger deals with stronger due diligence.

• Acquire also lists e-commerce businesses of all sizes, from beginner dropshipping stores to larger, established shops.

• BizBuySell is another top option that lists many types of online businesses, including websites and e-commerce stores.

Pro Tip: Some sales also happen privately. Owners who don’t want to list publicly may sell to contacts or referrals. Networking, industry events, and online groups can open doors to these off-market deals.

How To Value An Ecommerce Business

Now that you know how much e-commerce businesses cost, you might be wondering how the sellers arrive at those costs.

They simply do a valuation to find out how much their business is worth…

And the most common method of valuation for e-commerce businesses is multiplying annual profit by a set multiple, as explained below:

• For smaller stores, people use Seller’s Discretionary Earnings (SDE), which adds the owner’s pay and perks back to net profit.

• For larger businesses, buyers often use EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which strips out taxes, interest, and non-cash expenses.

For example;

If a store makes $60,000 in SDE per year, and the buyer applies a 4× multiple, the asking price will be $240,000.

If a store makes only $15,000 in SDE and has risks like reliance on one ad channel, it might sell for only 2× earnings, or $30,000.

NOTE that these multiples are not fixed. A store with strong growth, many repeat buyers, and high margins can sell at the higher end of the range.

A store with declining sales or a high owner workload may be stuck at the lower end.

According to Raincatcher, small e-commerce businesses often sell for 2.5× to 3.5× SDE, while stronger mid-size stores fall in the 3× to 5× range.

Sellers also factor in the value of the business assets, including inventory, trademarks, domain names, social media accounts, and email lists.

These items add to the purchase price, but they also add real value.

Tips for Finding Undervalued E-commerce Businesses

Here’s our piece of advice based on years of experience dealing with e-commerce business acquisitions:

If you are patient, you can easily find businesses priced below their true potential.

The secret is knowing the key signs to look for. These include:

• Strong traffic (but poor monetization): For example, if a site has steady visitors but no email list, weak product pages, or no upsells, it may earn less than it should. If you can fix these gaps, you can increase profit quickly.

• Outdated design: Many stores with old layouts or poor branding still have good products and traffic. A new design and better photos can lift sales without much extra cost.

• Sometimes sellers are in a hurry: They may want to retire, change industries, or free up cash. In these cases, you might find a well-run store listed for less than its earnings would suggest.

• Also, some businesses rely heavily on one marketing channel, like Facebook ads. That risk lowers the price. If you have skills in SEO or other marketing, you can diversify traffic and raise value.

• Finally, look at supplier or inventory issues: A store with poor inventory management might look less profitable than it should. If you know how to improve systems or negotiate better terms, you can buy low and grow fast.

Recommended: Buying an E-commerce Business: Step-by-Step Guide For Beginners

Hidden Costs To Keep in Mind

The asking price of an e-commerce business is not the only money you’ll spend. You should also factor in hidden costs that come after the deal.

Some of the most common hidden costs include:

• Inventory is often sold separately, and depending on the products, that can add thousands to your total spend.

• Legal and due diligence fees also add up, especially if you hire accountants or lawyers to review contracts.

• Transition costs, such as training, hiring staff, or upgrading systems, can surprise new owners.

• You’ll also need working capital for marketing, returns, shipping, and platform fees. If you only budget for the sale price, you risk running short after the purchase.

Pro Tip: A safe approach here is to plan for an extra 20–30% on top of the asking price so you’re ready for these expenses.

FAQs: The Cost of Buying an E-commerce Business

You probably still have a few quick questions about how much you’ll spend on buying an e-commerce business, so let’s clear them up…

Is it cheaper to build or buy an e-commerce store?

Building a store can be cheaper upfront because you only pay for setup, hosting, and marketing. But it takes time to attract traffic and sales, and many new stores fail. Buying costs more upfront, but you get an existing customer base, working systems, and cash flow from day one. In simpler words, it’s a trade-off between money and time.

What is the minimum budget to buy an e-commerce store?

Some very small or starter stores sell for as little as $2,000 to $5,000, but these rarely make much profit. For a business with steady sales and real growth potential, you should expect to pay at least $20,000 or more. Most mid-sized stores fall in the $30,000 to $200,000 range, depending on profit, traffic, and brand strength.

How long does it take to recover the cost?

Recovery time depends on how much profit the store generates and how well you grow it after purchase. Many buyers aim for a payback period of two to three years, meaning the store’s profit should equal the purchase price within that time. Faster growth, higher margins, or stronger marketing can shorten the timeline, while weak performance can extend it.

What risks should I look out for?

Common risks include fake or inflated traffic, unreliable suppliers, and over-reliance on a single ad channel or marketplace. Stores that depend heavily on one product or one customer group can also be risky. Always verify financials, traffic data, and contracts during due diligence. A store with diversified traffic and strong repeat customers is usually safer and worth paying more for.

Recommended: Buying An E-commerce Business vs Starting One: Which Wins?

The Bottom Line

Buying an e-commerce business can cost you anywhere from a few thousand to hundreds of thousands, depending on profit, traffic, and brand strength. Knowing these costs helps you set a clear budget and avoid overpaying. With careful research, patience, and the right support, you can find a business that fits your goals and offers strong growth potential.

If you’re worried that your budget might limit your options, don’t stress. With the right guidance, it’s possible to find a profitable e-commerce business that fits both your budget and your goals. That’s why we offer you EcomAcquire services, where we help buyers like you discover solid opportunities with real growth potential, in as little as 30 days.