How to Sell Your Ecommerce Business
Step 1: Know what it’s worth
Profitable ecommerce businesses are valued as a multiple of earnings. For owner-run businesses that’s usually seller’s discretionary earnings (SDE); larger brands with a management team are valued on EBITDA. Published broker data puts Amazon FBA businesses around 3.1x SDE and non-Amazon ecommerce around 2.6x, with brands above $1M SDE closer to 4x. Marketplace averages are lower because they include many smaller listings.
Start with the ecommerce valuation calculator for a rough range.
Step 2: Prepare before you list
Buyers discount anything they can’t verify. Before going to market:
- Rebuild a clean P&L with clearly documented add-backs.
- Reconcile the numbers to Shopify, Amazon, TikTok Shop and payment processor reports.
- Document operations: suppliers, fulfillment, ad management, customer service and tools.
- Reduce single points of failure: one product, one supplier, one ad channel or one person.
- Fix account health issues and resolve open disputes.
The ecommerce exit-readiness checklist covers this in detail.
Step 3: Find the right buyers
| Business size (price) | Most active buyers |
|---|---|
| Under $1M | Individual operators, often with SBA loans; search funds |
| $1M–$10M | Holding companies, remaining aggregators, experienced operators |
| $10M+ | Private equity, strategic acquirers |
A confidential process keeps your brand name private until a buyer signs an NDA and shows they can fund the deal.
Step 4: Negotiate price and terms
The headline price is only part of an offer. Compare:
- Cash at closing versus amounts paid later
- Earnouts and what triggers them
- Seller notes, including whether an SBA lender requires them to be on full standby
- Inventory treatment, usually added at cost
- Working capital, exclusivity period and handover terms
Step 5: Due diligence and closing
Expect buyers to verify financials, ad accounts, supplier terms, legal and tax records, and the transfer path for every account. A well-prepared business moves through diligence faster and is far less likely to see its price renegotiated at the last minute.
Platform-specific guides: sell your Amazon business, sell your Shopify store, sell your TikTok Shop business and DTC brand exits.
Frequently asked questions
Should I sell my ecommerce business myself or use a broker?
Selling yourself avoids a success fee but means finding and vetting buyers, keeping the sale confidential, negotiating terms and running diligence on your own. A broker's job is to create competition between buyers and protect the deal from collapsing late. For businesses with $1M+ in profit, the difference in price and terms usually outweighs the fee.
What is the best time of year to sell?
Seller searches and buyer activity both peak in January and February, after Q4 results. Going to market with a strong Q4 and clean year-end books is a good position.
How long do I need to stay after the sale?
Handover periods typically run 30 to 90 days, sometimes up to 12 months for larger deals. It's negotiated as part of the terms.
What is SDE?
Seller's discretionary earnings are net profit plus the owner's salary and benefits, personal expenses run through the business, and one-off costs. It shows what a single owner-operator actually earns from the business.
Find out what your brand is worth
A confidential valuation from founders who have operated and sold ecommerce businesses. No upfront fees.
Confidential. We never share your details or your brand name without your permission.