How To Sell Shopify Store: All You Need to Consider

In this article, we’ll discover the essential steps and strategies to help you successfully sell Shopify store in 2023, maximizing your profits and ensuring a smooth transaction process.

Key Takeaways

Ways to sell Shopify stores:

1. Private Sale: Best for Established Brands
2. Marketplaces: Best for Various Business Types
3. Business Broker: Best for Complex or Growing Ventures

Conduct a Business Valuation Before You Selling Your Shopify Store

Why is Business Valuation important?

Business valuation is a critical process that holds immense importance, especially when considering the sale of your Shopify store. Here are the reasons why business valuation is essential: 

• Accurate Pricing: Business valuation provides an objective assessment of your Shopify store’s value, taking into account various financial and operational aspects. This accurate valuation empowers you to set a competitive and realistic asking price. 
• Negotiation Advantage: Armed with a comprehensive business valuation report, you enter negotiations with confidence and authority. This advantage can lead to smoother discussions and potentially more favorable terms, ensuring a win-win situation for both you and the buyer.
• Enhanced Buyer Trust: Transparency is crucial in building trust with potential buyers. It reassures buyers that your asking price is rooted in solid financial analysis, fostering trust and reducing skepticism. 
• Profit Maximization: Business valuation sheds light on areas of potential improvement within your Shopify store. By identifying strengths and weaknesses, you can take strategic actions to enhance your business’s appeal to buyers. 
• Informed Decision-Making: Business valuation provides you with a comprehensive understanding of your store’s financial health and operational performance. With this insight, you can make well-informed choices about when to sell, how to position your store, and whether certain improvements are necessary before listing it for sale.
• Reduced Transaction Risks: By conducting a thorough business valuation, you can identify and address potential risks or obstacles that might arise during the sale process. 

How to conduct a business valuation

Here are what you need to consider to conduct a business valuation:

Factor #1: Business Age

The age of your Shopify store wields a substantial influence on its valuation, encompassing various elements that potential buyers scrutinize when evaluating its worth. 

• The Evolution of Value Over Time

The age of your Shopify store acts as a timeline that illustrates the evolution of your business from its inception to the present. Buyers often perceive well-established businesses with a proven track record as more valuable due to their history of operational stability, revenue generation, and customer loyalty. 

• Customer Base and Market Penetration

The duration your Shopify store has been operational can significantly impact its customer base and market penetration. An older business has had more time to cultivate a loyal clientele and establish a foothold within its target market. A well-established customer base translates to a consistent revenue stream, which is a key factor in determining valuation. 

Factor #2: Diversity

Diversity, in the context of your business’s revenue streams, customer base, and product offerings, carries a profound influence on its overall valuation. Navigating the nuances of diversity and comprehending its implications can significantly shape your selling strategy and lay the groundwork for a successful and lucrative sale.

• Diverse Revenue Streams: A Source of Stability

Businesses that rely on a single revenue source are more susceptible to market fluctuations and industry shifts. Conversely, a store with multiple revenue channels, such as e-commerce sales, subscription models, affiliate marketing, or digital products, demonstrates a higher degree of financial stability. 

• Customer Base Diversity: A Bridge to Longevity

A well-diversified customer portfolio reduces dependency on a specific demographic or segment. Businesses with diverse customer segments are often viewed as having a higher potential for long-term sustainability, a factor that positively influences valuation.

• Product and Service Diversity: Unlocking Market Potential

The scope of products or services your Shopify store offers contributes to its valuation. A diverse product portfolio not only caters to a broader audience but also taps into various market segments. This diversity showcases your store’s adaptability and responsiveness to evolving consumer preferences. 

Factor #3: Brand Strength

Understanding how brand strength shapes the valuation process is essential to crafting a strategic selling approach that not only maximizes financial returns but also embodies the essence of your brand’s legacy.

• Brand Recognition and Market Presence

A robust brand carries the weight of recognition and market presence. Buyers are inherently drawn to businesses with established brands that resonate with consumers.

The extent to which your Shopify store’s brand is known and respected within its industry contributes to its valuation. A strong brand presence can lead to higher buyer interest and competitive bidding, thereby enhancing the final sale price.

• Customer Loyalty and Engagement

A brand that has cultivated a loyal customer base signifies repeat business and a higher customer lifetime value. Buyers recognize the potential for continued revenue generation from a loyal customer base, enhancing the perceived value of your Shopify store.

Factor #4: Owned Assets

These assets, ranging from physical inventory and equipment to digital properties and intellectual property, wield a profound influence on the overall value of your business. 

• Inventory and Tangible Assets

Owned physical inventory and tangible assets, such as equipment and machinery, contribute to the valuation of your Shopify store. 

The quantity, quality, and market value of these assets are considered when assessing your business’s overall worth. A well-maintained inventory and functional equipment not only enhance operational efficiency but also positively impact your store’s valuation. 

• Digital Properties and Intellectual Property

Domain names, trademarks, copyrights, and patents hold intrinsic value and contribute to your store’s overall valuation. These assets provide legal protection, market exclusivity, and a unique market position for your Shopify store. 

Decide Who To Sell Your Shopify Store To?

The question of who to sell your Shopify store to is not merely a matter of preference; it holds the potential to profoundly impact the outcome of your sale. This decision carries implications that reverberate through various facets of the transaction, from valuation and negotiation to the future trajectory of your business legacy. 

Selecting the right buyer involves a meticulous evaluation of their vision, values, and long-term objectives. Your Shopify store represents more than just a financial transaction; it embodies your entrepreneurial journey, brand ethos, and the relationships you’ve cultivated. A buyer who resonates with your store’s vision and shares your values is more likely to uphold its legacy and maintain customer trust. 

Selecting the ideal buyer entails also assessing their operational expertise and ability to seamlessly transition and operate your Shopify store. A buyer with industry-specific knowledge and experience can ensure the continuation of smooth operations, minimizing disruptions for customers and stakeholders. 

Best Places to Sell Your Shopify Business

01. Private Sale

What is Private Sale?

A private sale entails directly selling your Shopify business to an individual or entity without involving a third-party marketplace or intermediary. It’s a one-on-one transaction where you negotiate terms, finalize the deal, and transition ownership privately. Opting for a private sale offers distinct advantages and control over the process, allowing you to tailor the sale to your preferences and the needs of the buyer.

Features of Private Sale

• Confidentiality: Private sales offer a level of confidentiality that other methods may lack. You can keep sensitive information about your business, such as financials and customer data, private throughout the transaction.
• Direct Negotiation: Engaging in direct negotiations with the buyer enables you to establish a personal connection, address concerns, and customize the terms to mutually beneficial arrangements.
• Flexible Terms: Private sales allow for more flexibility in structuring the deal. You can negotiate payment terms, transition support, and other specifics that align with both parties’ requirements.
• Tailored Transition: With direct communication, you can ensure a smoother transition of ownership. You have the opportunity to provide training and support, making it easier for the buyer to take over operations seamlessly.
• Personalization: Private sales often involve a more personalized approach. You can highlight your business’s unique qualities and value proposition to resonate with the buyer’s aspirations.
• Potentially Higher Valuation: Since private sales don’t involve listing fees or intermediary commissions, you may retain a larger portion of the final sale price, potentially increasing your overall profit.
• Control Over Timing: You have greater control over the timeline of the sale, enabling you to align it with your business’s performance and market trends.

Pros of Private Sale

• Direct Control: You have complete control over the negotiation process, terms, and final sale price, allowing you to tailor the deal according to your preferences.
• Personal Connection: Direct interaction with the buyer fosters a personal connection, building trust and potentially facilitating smoother negotiations and transition.
• Higher Profit Potential: With no third-party platform fees or commissions, you can retain a larger portion of the sale price, potentially maximizing your overall profit.
• Reduced Competition: Private sales attract serious buyers genuinely interested in your business, potentially reducing competition and expediting the sale process.
• Future Opportunities: Establishing a personal relationship with the buyer can lead to potential collaborations, recommendations, or even future partnerships within your industry.

Cons of Private Sale

• Limited Exposure: Private sales may have limited reach compared to broader marketplace platforms, potentially reducing the pool of potential buyers.
• Time-Consuming: Direct negotiations and personalized processes can be time-consuming, requiring thorough due diligence, documentation, and legal agreements.

Private Sale is for whom?

Private Sale is ideal for:

• Established E-Commerce Entrepreneurs: For those who have meticulously built their Shopify store and wish to entrust it to a like-minded individual who shares their values and vision, a private sale offers a seamless transition, ensuring the brand’s integrity and legacy.
• Niche Industry Experts: Niche-specific businesses, such as specialty fashion or artisanal goods, can benefit from private sales. Buyers with a deep understanding of the industry can preserve the store’s essence and cater to the specialized market.
• Service-Based Entrepreneurs: Businesses offering services, such as digital marketing or consulting, thrive on personal connections. Private sales allow these entrepreneurs to maintain client relationships and ensure a smooth handover of projects.
• Tech Savvy Entrepreneurs: Tech-driven businesses, like software or digital product stores, can appeal to buyers with expertise in the field. A private sale ensures the buyer can effectively manage and innovate the digital landscape.
• Artists and Creatives: Unique boutiques or stores selling artistic creations can find a suitable match in buyers who appreciate the craft. Private sales preserve the artistic vision and ensure the store’s offerings continue to resonate.
• Health and Wellness Entrepreneurs: Businesses in wellness sectors can benefit from private sales to buyers who align with the health-conscious philosophy. It ensures continuity in promoting well-being.
• Industry Insiders: Professionals well-versed in a particular industry can capitalize on their expertise by privately acquiring a Shopify store, leveraging their knowledge for growth.

02. Marketplaces

What is Marketplaces?

Marketplaces refer to online platforms that facilitate the buying and selling of businesses. These platforms provide a centralized space where Shopify store owners can list their businesses for potential buyers to discover and evaluate. Marketplaces offer a wide reach and access to a diverse pool of buyers, making them an attractive option for those seeking a streamlined and competitive selling process.

Some well-known marketplaces for selling Shopify businesses include Empire Flippers, Exchange Marketplace by Shopify and Flippa.

2.1. Empire Flippers

What is Empire Flippers?

Empire Flippers is a prominent online marketplace dedicated to buying and selling online businesses, including Shopify stores. It provides a platform where entrepreneurs can list their e-commerce ventures for potential buyers to discover and acquire. Empire Flippers stands out for its commitment to transparency, security, and facilitating successful transactions within the online business ecosystem.

Features of Empire Flippers

• Detailed Listings: Sellers can create comprehensive listings with detailed business information, financials, and growth potential, enabling buyers to make informed decisions.
• Valuation Tools: Empire Flippers offers tools to help sellers determine a realistic asking price based on financial data and market trends.
• Vetted Buyers: Potential buyers undergo a thorough vetting process, ensuring that serious and qualified individuals engage with your listing.
• Due Diligence: Both sellers and buyers benefit from due diligence resources and guidance to navigate the intricate aspects of business transactions.
• Escrow Services: Secure escrow services hold funds until all terms of the agreement are met, providing confidence to both parties.
• Marketplace Expertise: The platform specializes in various online business models, offering insights and expertise relevant to e-commerce entrepreneurs.
• Supportive Community: Empire Flippers fosters a community of sellers, buyers, and experts who share insights, tips, and experiences.

Pros of Empire Flippers

• Transparency: Empire Flippers emphasizes transparent communication, ensuring accurate representation of listings.
• Qualified Buyers: The vetting process attracts genuine buyers, increasing the likelihood of successful transactions.
• Wide Reach: Empire Flippers’ extensive user base maximizes exposure, attracting a diverse range of potential buyers.
• Security: Escrow services and secure processes provide a safe environment for financial transactions.
• Technical Support: Assistance with migration and technical aspects simplifies the ownership transfer process

Cons of Empire Flippers

• Competition: Due to the platform’s popularity, your listing may face competition from other businesses for sale.
• Limited Customization: While listings can be detailed, there may be limitations to how you can present your business.
• Dependence on Platform: Using Empire Flippers ties you to their policies, procedures, and marketplace rules.

Empire Flippers is for whom?

This platform is perfect for:

• Digital Marketers: Professionals with a background in online marketing, attracted to e-commerce opportunities that align with their expertise.
• SEO Specialists: Individuals well-versed in search engine optimization can acquire online businesses and optimize their online presence.
• Web Developers: Those skilled in website design and development can enhance acquired businesses for increased value.
• Content Creators: Content experts can leverage their skills to further develop and monetize businesses with strong content foundations.
• Affiliate Marketers: Professionals experienced in affiliate marketing can acquire and enhance businesses with established affiliate channels.
• Social Media Influencers: Those with a substantial social media following can acquire e-commerce businesses that align with their brand.
• Dropshipping Enthusiasts: Entrepreneurs keen on dropshipping models can find suitable opportunities to venture into or expand within this arena.

2.2. Shopify Exchange Marketplace

What is Shopify Exchange Marketplace?

Shopify Exchange Marketplace is a dedicated platform within the Shopify ecosystem where entrepreneurs can buy and sell existing Shopify stores. It provides a streamlined marketplace where potential buyers can discover established online businesses and sellers can list their ventures for a transaction within the Shopify community.

Features of Shopify Exchange Marketplace

• Easy Listing Creation: Sellers can create detailed listings with essential business information, showcasing their Shopify stores’ strengths.
• Verified Traffic and Revenue: Listings on Shopify Exchange include verified traffic and revenue data, providing transparency for buyers.
• Valuation Tool: A built-in valuation tool helps sellers estimate the value of their Shopify store based on financial metrics.
• Industry Categories: The marketplace categorizes listings based on industries, allowing buyers to explore businesses relevant to their interests.
• Secure Escrow Service: Shopify Exchange offers a secure escrow service to facilitate safe transactions and ensure funds are released upon agreed terms.
• Search Filters: Buyers can apply filters such as price range, industry, and store revenue to narrow down suitable options.
• Community Engagement: Shopify Exchange encourages community engagement, allowing users to ask questions and interact within the marketplace.
• Seamless Transition: The platform assists with ownership transfer and migration of assets, ensuring a smooth transition.

Pros of Shopify Exchange Marketplace

• Integrated Ecosystem: The platform is seamlessly integrated with Shopify, making it convenient for both buyers and sellers within the ecosystem.
• Verified Data: Listings include verified traffic and revenue data, providing buyers with accurate insights.
• Easy Access: The marketplace is easily accessible to anyone using Shopify, fostering a sense of trust and familiarity.
• Direct Audience: Listings are exposed to a targeted audience of entrepreneurs interested in Shopify businesses.
• Secure Transaction: Escrow services provide a secure environment for both parties, minimizing risks.
• Community Support: Users can engage with a community of like-minded individuals for advice and insights.
• Efficient Transition: Built-in tools and resources facilitate a seamless ownership transfer process.

Cons of Shopify Exchange Marketplace

• Limited Reach: Listings are primarily exposed to Shopify users, potentially limiting the pool of potential buyers.
• Transaction Fees: Shopify charges a listing fee and a success fee upon a successful sale.

Shopify Exchange Marketplace is for whom?

Shopify Exchange Marketplace is best for:

• E-commerce Newcomers: Aspiring entrepreneurs seeking an entry point into e-commerce can acquire established Shopify stores with verified data.
• Passive Income Seekers: Individuals aiming to generate passive income can invest in already-profitable Shopify businesses.
• Tech Enthusiasts: Tech-savvy individuals interested in digital assets and online entrepreneurship can engage in the e-commerce market.
• Marketing Gurus: Marketing professionals can optimize and scale existing Shopify stores using their expertise.
• Local Business Owners: Brick-and-mortar store owners seeking to expand their online presence can acquire complementary e-commerce ventures.
• Side Hustlers: Individuals looking to diversify their income streams can acquire established Shopify stores for supplementary earnings.
• Portfolio Builders: Entrepreneurs aiming to diversify their portfolio by venturing into different e-commerce niches can find suitable opportunities.
• Specialty Store Operators: Those passionate about a specific product category or niche can find tailored Shopify stores that align with their interests.
• Digital Marketing Professionals: Experts in digital marketing can optimize the online presence of acquired Shopify stores to drive growth.

2.3. Flippa

What is Flippa?

Flippa is a renowned online marketplace that facilitates the buying and selling of various digital assets, including online businesses, websites, and domains. Entrepreneurs and investors can leverage Flippa to list, discover, and acquire a diverse range of online ventures, making it a dynamic platform for those seeking opportunities in the digital landscape.

Features of Flippa

• Listing Variety: Flippa hosts a wide array of listings, from e-commerce businesses to content websites and mobile apps, catering to different entrepreneurial interests.
• Seller Verification: Sellers undergo a verification process, enhancing the credibility and reliability of listings.
• Detailed Listings: Listings feature comprehensive business information, financial data, traffic analytics, and monetization strategies.
• Bid and Auction System: Flippa employs a bid and auction system, enabling competitive offers and potentially driving up the sale price.
• Due Diligence Tools: Buyers can access due diligence resources and engage in discussions with sellers to make informed decisions.
• Escrow Service: Flippa offers escrow services to secure funds during the transaction process, minimizing risks for both parties.
• Valuation Tools: The platform provides valuation tools and historical data to assist sellers in pricing their digital assets.
• Community Engagement: Flippa fosters an engaged community of buyers and sellers, encouraging discussions and knowledge sharing.

Pros of Flippa

• Diverse Listings: Flippa’s broad range of listings appeals to entrepreneurs with various interests and preferences.
• Seller Verification: Verified sellers enhance the credibility and transparency of the platform.
• Transparent Information: Detailed listings provide buyers with valuable insights into the business’s performance.
• Competitive Pricing: The auction system can lead to competitive bidding, potentially driving up the final sale price.
• Community Interaction: Engaging with the community allows for networking, learning, and sharing experiences.
• Accessibility: Flippa is accessible to a global audience, enabling cross-border transactions.
• Due Diligence Resources: Buyers can perform thorough due diligence using available tools and discussions.

Cons of Flippa

• Competition: High visibility may result in increased competition from other buyers, potentially affecting purchase prices.

Flippa is for whom?

Flippa is best for:

• Digital Entrepreneurs: Those interested in venturing into the digital landscape can explore diverse online businesses.
• Investors: Individuals seeking digital assets for investment purposes can find opportunities on Flippa.
• Content Creators: Writers, bloggers, and content creators can acquire established content websites or blogs.
• Tech Enthusiasts: Individuals interested in technology and online ventures can explore suitable digital assets.
• Marketing Professionals: Professionals in digital marketing can acquire and optimize online businesses.
• E-commerce Enthusiasts: Those passionate about e-commerce can discover and acquire existing online stores.
• App Developers: Individuals with app development skills can explore mobile app listings for acquisition.
• Passive Income Seekers: Those looking to generate passive income streams can acquire monetized digital assets.
• Startup Aspirants: Entrepreneurs looking for established ventures as a foundation for their startup journey.

03. Business Broker

Who are Business Brokers?

A business broker is a professional intermediary who assists in the buying and selling of businesses. They specialize in facilitating the sale of businesses, connecting sellers with potential buyers and guiding them through the entire process to ensure a successful transaction. Business brokers play a crucial role in valuing, marketing, and negotiating the sale of businesses, offering expertise and support to both parties involved.

Features of Business Broker

• Valuation Expertise: Business brokers have in-depth knowledge of business valuation methods to determine a fair market price.
• Extensive Network: They have an established network of potential buyers and investors, enhancing the reach of your listing.
• Confidentiality: Brokers maintain confidentiality throughout the process, protecting sensitive business information.
• Market Insights: They provide insights into market trends, helping sellers make informed decisions about timing and pricing.
• Marketing Strategy: Business brokers develop a customized marketing strategy to attract qualified buyers to your listing.
• Negotiation Skills: Brokers negotiate on behalf of the seller, aiming to secure the best possible terms and price.
• Due Diligence Assistance: They guide both parties through due diligence, ensuring a smooth and thorough examination of the business.
• Documentation Management: Brokers handle the extensive paperwork required for business sales, ensuring accuracy and compliance.

Pros of Business Brokers

• Expertise: Business brokers bring industry-specific expertise and experience to guide the entire selling process.
• Time Savings: They handle various tasks, allowing sellers to focus on running their business during the sale.
• Confidentiality: Brokers maintain confidentiality, preventing sensitive information from reaching competitors.
• Qualified Buyers: Their network attracts serious and qualified buyers, increasing the chances of a successful sale.
• Negotiation Skills: Brokers’ negotiation skills can lead to favorable terms and a higher sale price.
• Reduced Stress: With a broker’s support, sellers can navigate the complexities of the sale with reduced stress.

Cons of Business Broker

• Dependence: Sellers relinquish some control over the selling process to the broker’s expertise and decisions.

Business Broker is for whom?

Business Broker is best for:

• Entrepreneurs Seeking Expansion: Business owners aiming to expand their operations through acquisition can leverage a broker’s expertise.
• First-time Sellers: Novice sellers can benefit from a broker’s experience and support in navigating the complex process.
• High-Value Businesses: Owners of businesses with substantial assets or complex operations can find a broker’s expertise valuable.
• Struggling Businesses: Brokers can help position struggling businesses for a successful sale, leveraging their network.
• Corporate Divestitures: Corporations seeking to divest non-core assets can enlist a broker to manage the sales process.
• Franchise Owners: Franchisees looking to sell their franchise unit can benefit from a broker’s knowledge of the franchise industry.

A Timeline to Prepare Your Shopify Store for Sale

Preparing your business for sale is a meticulous process that involves specific actions and considerations at different stages. Let’s delve into a timeline that outlines crucial steps you should take to ensure your business is well-prepared for a successful sale.

Six Months Out

Six months before the sale marks the ideal time to address operational changes that can enhance your business’s value and appeal:

• Efficiency Overhaul: Identify inefficiencies and underperforming areas in your operations. Develop standardized operating procedures (SOPs) to streamline processes and improve overall efficiency.
• Automation and Outsourcing: Consider leveraging software tools or virtual assistants (VAs) to automate routine tasks, reducing your direct involvement in day-to-day operations.
• Supply Chain Strengthening: Secure a written supply rate agreement from your suppliers that can be transferred to the new owner. Negotiate exclusivity agreements and better rates to boost margins and make your business more enticing to potential buyers.
• Future Marketing Plan: Craft a comprehensive marketing plan that outlines potential growth opportunities for the business. This forward-looking strategy showcases the business’s potential and attracts prospective buyers.

Three Months Out

Three months before the sale, shift your focus towards presenting a clear financial history:

• Comprehensive Financial Analysis: Review your business’s financial records and create a profit and loss statement (P&L) covering the lifetime of your business. Highlight any fluctuations or anomalies that potential buyers should be aware of.
• P&L Preparation: Create an average net profit figure by assessing the past 12 months’ financial data. This helps potential buyers understand the business’s financial trajectory.
• Website Analytics: Ensure your website’s analytics tools, such as Google Analytics or Clicky, have been connected for at least three months. Robust analytics provide insights into your business’s online performance.
• Terms of Service Update: Revise and update your terms of service to provide clarity and transparency for potential buyers and to avoid any future complications.

Sell Shopify Store: FAQs

Sell Shopify Store: Bottom Line

In conclusion, embark on a strategic journey to sell Shopify store, unlocking new possibilities and maximizing its value in the dynamic e-commerce landscape.