Is Buying An E-commerce Business Safer Than Starting One?

So, you’re thinking about owning an e-commerce business. That’s exciting.

NOW you’re probably already hit the big question:

Should you build your own store from scratch or buy one that’s already up and running?

On one hand, starting fresh feels cheaper and gives you the freedom to create everything your way.

On the other hand, buying a ready-made store sounds like a shortcut past all the trial-and-error headaches.

Both paths can work, but each comes with its own risks and rewards.

In this guide, we’ll break down what really happens when you start from zero versus when you buy in.

This will help you make the choice that fits your budget, your goals, and your unique expectations.

Buying an Existing E-commerce Business VS Building From Scratch:

The Reality of Starting From Scratch:

Probably the BIGGEST benefit of building a new e-commerce store is that it gives you full control.

You get to pick a platform of your choice, choose the design, select the suppliers, and set the prices.

The upfront costs are also usually low. Shopify estimates that starting a dropshipping store can cost as little as $500 to $1,000 if you do most of the work yourself.

This low entry point is highly appealing, especially for a first-time entrepreneur.

However, the risk of failure shows up in the first year. According to Forbes, about 90 percent of new online businesses fail within 12 months.

The most common reasons for the failure include:

• Weak product demand

• Poor supplier relationships

• The rising costs of online ads

Getting traction can be quite hard. Even if you know how to run Facebook ads or optimize Google search, turning traffic into profit is slow and unpredictable.

Another key challenge is time. Building a store from scratch usually takes six months to a year before you see steady sales.

You may need to test different suppliers, adjust pricing, and spend thousands on marketing without knowing if the store will ever succeed.

If your main goal is speed or cash flow, this path is slow and risky.

Starting An E-commerce Store From Scratch Pros & Cons:

Pros

• Low startup costs (as little as $500–$1,000).

• Full control over brand, products, and systems.

• Great way to learn e-commerce hands-on.

• Flexibility to pivot quickly if needed.

Cons

• Very high failure rate (about 90% in year one).

• Takes months or years to gain traction.

• Requires constant testing and adjustment.

• Cash flow is uncertain and slow to build.

The Appeal of Buying an Existing Business

Buying an established e-commerce business solves many of the challenges associated with starting from scratch.

Instead of starting with an empty website, you get a store that already has products, traffic, and sometimes repeat customers.

You also get a financial track record. This gives you proof of concept before you invest your money.

Marketplaces such as Empire Flippers and Flippa list thousands of e-commerce stores for sale.

Prices for these businesses vary widely. You can find small dropshipping stores under $10,000 and established private-label brands for millions.

Buying is also faster. Instead of spending months testing suppliers and running ads, you can step into a business that is already running.

If your goal is cash flow, that speed is valuable.

A business with an email list, strong reviews, and repeat customers gives you a foundation to grow rather than start from zero.

Buying an Existing E-commerce Business Pros & Cons:

Pros

• Proven concept with revenue history.

• Faster path to cash flow.

• Comes with customers, suppliers, and systems.

• Higher chance of success if due diligence is done.

Cons

• High upfront cost (often $10,000+).

• Risk of bad data or inflated numbers from sellers.

• Reliance on existing suppliers or ad channels.

• Larger financial loss if the business fails.

Where Buying An Existing Business Is Truly Safer

The main reason buying can be safer is validation. Think of it this way: Someone else already built the store, found products that sell, and attracted paying customers.

You can see revenue and profit before making a decision. This helps you significantly reduce guesswork—the biggest risk in a new business.

Buying also gives you a working system. The supply chain is usually in place. Ads and traffic sources are active. Customer service systems exist.

While you can always improve these areas, you do not need to build them from scratch.

For many entrepreneurs, this head start is worth the higher cost.

Another safety factor is time to cash flow. When you buy an established business, you often start earning revenue within weeks.

With a new store, you may spend months with zero income. If you depend on your business for income, buying reduces the risk of running out of money before your store takes off.

The Hidden Risks of Buying An Established E-commerce Store

Even though buying looks safer, it comes with its own risks. The most serious risk is bad data. Some sellers inflate revenue or hide expenses.

Others rely on unsustainable traffic sources.

For example, a store that made money from one viral TikTok trend could collapse once the trend ends. If you buy that store, you inherit the problem.

Supplier risk is another issue. Many dropshipping stores rely on one supplier. If that supplier increases prices or delays shipping, your store could lose customers overnight.

When you start from scratch, you can choose your suppliers carefully and build backup relationships. When you buy, you accept the structure already in place.

Cost is also a major factor. Starting a store can be done for under $1,000. Buying often costs $10,000 or more. That higher upfront investment does not guarantee success.

If the store fails, your loss is much larger than if you had tested a smaller launch on your own.

Due Diligence Makes the Difference

The safety of buying an e-commerce business depends on how carefully you check the details.

Before committing, you need to verify the numbers and confirm the systems.

At a minimum, request 12 to 24 months of financial statements and cross-check them with bank deposits or payment processor data.

Review Google Analytics or Shopify Analytics to confirm traffic sources and patterns.

Pay close attention to customer acquisition costs and lifetime value, since these show whether growth is sustainable.

You should also check refund and chargeback rates, since high rates can signal poor product quality or unhappy customers.

Review supplier contracts and make sure there are backup options. If the store relies too heavily on a single ad platform or viral trend, that is a red flag.

Finally, always use escrow services or trusted brokers to handle the transaction.

This ensures the seller delivers what they promised before your money changes hands.

Comparing the Two Paths

When you compare starting from scratch with buying an existing store, the trade-offs are clear.

Starting is cheaper but comes with high failure rates and slow traction. Buying is faster and can be safer, but it requires more money and careful due diligence.

For beginners, starting from scratch can be a low-cost way to learn how e-commerce works.

Even if the store fails, the lessons are valuable and will prepare you for a future purchase.

For those with more capital and less time, buying an existing business offers speed and stability, provided you verify the numbers. Some entrepreneurs take a blended approach.

They start small to gain experience, then buy a larger store once they understand marketing and supplier management. This path balances learning with growth.

Buying an E-commerce Business Vs Starting One FAQs:

Beyond the big question of buying versus starting, people often ask related questions about e-commerce risks and rewards. Let’s look at some of the most common ones:

Is it Better to Start a Business From Scratch or Buy One?

The better path depends on what you value more—control or speed. Starting from scratch gives you the freedom to build your own brand, pick your products, and test different strategies. It’s cheaper up front and a great way to learn. Buying, on the other hand, gets you past the early struggles. You step into a business that already has customers, suppliers, and revenue. It costs more, but it saves you months or even years of trial and error. The “better” choice really depends on your budget, your timeline, and your experience level.

Is Buying an Existing Business Better Than Starting One?

For many entrepreneurs with capital, buying can be the smarter move. You get proof that the business model already works, and you often see revenue from day one. But it only holds true if you do your homework. Without proper due diligence, buying can be riskier than starting because the upfront cost is higher and mistakes are more expensive.

Is Starting an E-commerce Business Worth It?

Yes, starting an e-commerce business is worth it if your main goal is to learn and gain hands-on experience. You’ll understand how to run ads, manage suppliers, and deal with customers. Even if the store fails, the lessons are valuable and can prepare you for bigger opportunities later. The low startup cost makes it a reasonable way to test the waters, but you should go in knowing that the odds are against most first-time founders. If you treat it as both a learning process and a business venture, then starting is worth the effort.

Is E-commerce Considered a High-Risk Business?

Yes, e-commerce is considered high-risk compared to many offline businesses. The reasons are simple. Ad costs can spike overnight. Suppliers can fail to deliver. Platforms like Amazon or TikTok can change rules without warning. Competition is global, not just local. That means margins can shrink quickly, and customer expectations are very high. On the flip side, the rewards can also be high because the market keeps growing. U.S. e-commerce sales hit $304.2 billion in Q2 2025, up 5.3% from the previous year (U.S. Census Bureau, 2025). So while the risk is real, the opportunity is still huge.

What is the Failure Rate of E-commerce Businesses?

The failure rate for new e-commerce businesses is quite high. According to Forbes, about 90% of new online businesses fail within their first year. The top reasons are poor product choices, lack of demand, weak cash flow, and rising ad costs. Even beyond the first year, survival rates are low compared to other industries. This is why many entrepreneurs choose to buy instead of build—they want to skip the riskiest stage. Still, the failure rate drops significantly when you buy a business with a proven track record, stable traffic, and loyal customers.

To Buy or Build?

Starting an e-commerce store from scratch is cheaper and gives full control, but it’s slow and risky. Buying helps you skip the early struggles and enjoy instant revenue, but it costs you more and needs careful checks. E-commerce itself is high risk, with about 90% of new stores failing in the first year. However, the market is growing, so both paths can work depending on your budget, goals, and how much risk you’re ready to take.

If you choose to buy an e-commerce business, then the real win here comes from buying right. We can help you identify the strongest opportunities for your budget, run thorough due diligence, and set you up with a business built for growth. With the right foundation, you’ll not only scale faster but also be in a strong position to exit for a premium when the time comes.