Sell My E‑commerce Business – AI‑Powered Brokerage & Valuation

Thinking of an exit? Get a data‑driven valuation, a buyer‑ready package, and a confidential process designed for DTC, Amazon (FBA/FBM), and marketplace brands.

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How Much Is My E‑commerce Business Worth?

Short answer: Valuation ≈ Annual Net Profit (SDE/EBITDA) × market multiple, adjusted for revenue growth, gross margin, repeat rate/LTV, CAC/ROAS, channel mix (DTC/Amazon/wholesale), SKU/supplier concentration, seasonality, returns/chargebacks, and operational risk (3PL, inventory, logistics).

Valuation, in brief (5 steps)

  1. Choose method: SDE multiple for owner‑operated brands; EBITDA for larger/systemised operations.
  2. Normalise metrics: revenue, COGS, freight/fulfilment, ad spend (Meta/Google/Amazon), returns, add‑backs.
  3. Benchmark with comps: niche, AOV, LTV, growth, margin bands, marketplace dependence, seasonality.
  4. Adjust for risk: SKU/supplier/customer concentration, platform risk, policy compliance, product liability.
  5. Run scenarios: base / upside / de‑risked (e.g., ad efficiency, SKU rationalisation, margin gains) to set a defensible range.

E‑commerce Valuation Multiples in 2025 (Indicative)

Ranges vary by size, quality, and buyer type. Treat these as directional bands, not guarantees.

ProfileBasisIndicative Range*
Owner‑operated, <$500k annual profitSDE multiple~2.5×–3.8× SDE
$500k–$2m annual profit, steady growthSDE/EBITDA multiple~3.0×–5.0× SDE (or 4.0×–6.0× EBITDA)
$2m+ annual profit, strong brandEBITDA multiple~5.0×–8.0× EBITDA

*Illustrative bands only; actual outcomes depend on growth, margins, LTV/CAC, channel mix, returns, risk, buyer type, and market conditions.

How We Value E‑commerce: Growth, Margins, LTV/CAC, Returns

DriverStrong SignalEffect on Multiple
Revenue GrowthConsistent MoM/YoY growth with forecastable demandHigher (durable growth)
Gross Margin≥ 60% DTC / ≥ 40% blended with stable landed costsHigher (profit headroom)
LTV / CAC (ROAS)LTV:CAC ≥ 3:1; paid share not excessiveHigher (efficient acquisition)
Repeat Purchase RateHealthy cohorts; subscriptions or replenishment SKUsHigher (predictability)
Returns/ChargebacksLow return rate; clear QA; warranty controlsHigher (lower leakage)
Concentration RiskNo SKU/supplier/channel > 30% revenueHigher (resilience)

SDE vs EBITDA for E‑commerce: Which One Matters?

Owner‑led brands are commonly priced on SDE (profit + reasonable owner comp + normalised add‑backs). Larger, process‑driven brands trend to EBITDA. We compute both and align to the buyer pool.

How our AI model improves the valuation

  • Maps your metrics to live deal/comparable bands (niche, margin, LTV/CAC, channel mix).
  • Runs sensitivity on ad efficiency, COGS/freight, pricing, and SKU mix to show multiple uplift.
  • Ranks buyer fit (strategic vs financial) to indicate likely price/structure scenarios.
Example (illustrative): Net profit $900k; 28% YoY growth; 62% DTC margin; LTV:CAC 3.6×; return rate 4%; top SKU 18% of sales → AI comps produce a defensible range and show how −2 pts returns or +3 pts margin shifts the range upward.

What to prepare (faster valuation)

  • Last 24 months P&L/BS/CF; monthly channel split (DTC/Amazon/marketplaces/wholesale).
  • Ad account exports (Meta/Google/Amazon) with attribution; cohort/LTV tables; subscription/CRM metrics.
  • SKU‑level revenue/margin; inventory turns; returns/defect logs; chargebacks; warranty claims.
  • Supplier contracts; 3PL/fulfilment SLAs; freight & landed‑cost breakdown; compliance docs.
  • IP/trademarks; platform policy status; product liability coverage.

Quick answers:

Is e‑commerce valued on revenue or profit? Mostly on profit (SDE/EBITDA); revenue multiples apply to scale brands with strong unit economics.

Do Amazon‑only brands get lower multiples? Platform dependence can compress multiples unless offset by strong margins, reviews, defensibility, and off‑Amazon growth.

What improves my multiple fastest? Margin wins (COGS/freight), lower returns, healthier LTV/CAC, diversified channels, and reduced SKU/supplier concentration.

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How Long Does an E‑commerce Exit Take? (Typical 3–6 Month Timeline)

PhaseWeeksWhat Happens
Preparation2–4Normalise financials & metrics; assemble docs; create CIM; data room setup.
Outreach & IOIs2–4Targeted buyer list; NDAs; teaser/CIM distribution; initial Q&A.
LOIs & Negotiation2–3Term negotiation (price, structure, earn‑out); select preferred LOI.
Due Diligence4–8Financial, legal, operational (inventory/3PL), product liability, marketing analytics.
Closing & Handover1–2Legals, funds flow, IP & account transfers (Shopify/Amazon/ad accounts); transition plan.
Timelines vary by deal size, inventory complexity, and buyer type. Clean books and a complete data room compress time‑to‑close.

E‑commerce Sale Process (Step‑by‑Step)

  1. Preparation: normalise financials, verify channel analytics (Meta/Google/Amazon), review supplier and platform contracts, IP, trademarks.
  2. Packaging: CIM/teaser, KPI deck, SKU/inventory analysis, and secure data room.
  3. Buyer Outreach: confidential, thesis‑based approach to qualified strategics and financials; NDAs first.
  4. Offers & Negotiation: manage Q&A; align on price, working‑capital peg, inventory true‑up, and structure.
  5. Due Diligence: coordinate financial, legal, operational, and marketing/attribution diligence.

IOI vs LOI: What’s the Difference?

IOI (Indication of Interest) is a non‑binding price range and high‑level terms used to shortlist buyers. LOI (Letter of Intent) sets a specific price/structure, exclusivity period, and key conditions; it is still largely non‑binding except for exclusivity, confidentiality, and certain clauses.

Closing & Handover

Post‑LOI, definitive agreements are drafted (SPA/APA), schedules completed, working‑capital peg and inventory true‑up mechanics finalised, funds‑flow and escrow arranged, and platform/ad/marketplace accounts transferred. A clear transition plan reduces post‑close risk.

Due‑Diligence Checklist & Data‑Room Index

  • Financials: last 24–36 months P&L/BS/CF; revenue by channel; returns/chargebacks; landed cost model.
  • Analytics: GA4, Meta/Google/Amazon exports; cohort/LTV; subscription metrics; attribution model notes.
  • Legal: incorporation, cap table, supplier & 3PL contracts (assignability), trademarks, compliance (CPSIA/CE/FDA if applicable), product liability coverage.
  • Ops: inventory reports & turns; WMS/3PL SLAs; QA/returns SOP; freight & customs docs.
  • Commercial: SKU margin tables, pricing strategy, promotions history, top customers/wholesale, marketplace health (account health, policy status).
  • HR/Operations: org chart, contractor agreements (design, ads, logistics), SOPs.

Deal Structures & Terms

ElementWhat it isProsConsiderations
Asset vs ShareWhat the buyer purchasesAsset: cleaner; Share: continuityTax impact; liabilities; contract assignment; marketplace account transfer rules
Earn‑outDeferred, performance‑linkedBridges valuation gapsMetrics definitions (gross profit, revenue); control; reporting
Seller NoteVendor financingFaster close, better priceInterest, security, covenants
Escrow/HoldbackFunds reserved post‑closeProtects against surprisesDuration, claims process

Working Capital & Inventory Peg Adjustments

Expect a normalised working‑capital target at close. For e‑commerce, inventory is the key peg. Agree how to value on‑hand/in‑transit stock (landed cost), obsolete/slow‑moving write‑downs, and payables/receivables cut‑offs to avoid cash shortfalls. Define mechanics in the LOI.

Who Buys E‑commerce Businesses?

  • Strategic Buyers: category brands/retailers seeking product & channel fit, synergies, and higher potential multiples.
  • Financial Buyers (Aggregators/PE): disciplined underwriting, roll‑ups, structured deals with operating playbooks.
  • Search Funds/Entrepreneurial Acquirers: operators aiming to professionalise ops, pricing, and channel expansion.

Broker Fees vs DIY

PathTypical CostWhat You GetWhen It Fits
BrokeredCommission (tiered) + minimal upfrontPackaging, buyer network, negotiation, DD coordination, inventory/NWC modellingLimited time, larger buyer pool, price protection
DIYLow fees; high time costYou run outreach, Q&A, negotiation, legals, analytics verificationVery small deals; existing buyer already sourced

Best Time to Sell an E‑commerce Business

Sell into momentum: clean books, durable revenue/margin trends, healthy LTV/CAC, manageable returns, diversified channels, and resilient supply chain. If metrics are soft, a 3–6 month tune‑up (COGS/freight, returns, SKU mix, attribution) can lift multiples.

E‑commerce Brokerage Services

E‑commerce Sale Brokerage & Exit Advisory

We guide founders through the full sale — from financials and SKU/inventory prep to targeted buyer outreach and closing. Commission‑based; aligned with your outcome.

E‑commerce Valuation & Exit Planning

Get an AI‑powered, confidential valuation within 24 hours and a focused plan to lift multiples (margin, returns, LTV/CAC, channel mix).

Buy‑Side Advisory & Acquisition Search

For investors and acquirers: retained search, thesis‑matched brand deal flow, modelling and diligence support to reduce risk and speed to close.

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Case Studies (Anonymised)

ProfileSizeOutcomeStructureTime to LOI
DTC skincare brand$1.1m annual profit~5.1× EBITDA rangeCash + 18‑mo earn‑out6 weeks
Amazon FBA home goods$420k annual profit~3.4× SDE rangeCash + seller note5 weeks
DTC+Wholesale fitness$750k annual profit~4.2× SDE rangeAsset purchase7 weeks

Illustrative examples; actual outcomes depend on metrics, risk, structure and market conditions.

About Our AI‑Native Brokerage

We specialise in e‑commerce and online media M&A with AI‑assisted valuation models, buyer matching, and data‑room standards that speed diligence and protect price. Work is confidential, document‑first, and founder‑friendly.

Partnership Programme

Advisers, accountants, 3PLs, and operators can refer founders ready to exit. Earn partner fees while we deliver valuation, packaging, and deal execution.

Learn more about partnerships

FAQs – Selling an E‑commerce Business

How long does it take to sell an e‑commerce business?
Most sales complete in 3–6 months from preparation to close, depending on size, channel mix (DTC/Amazon), inventory complexity, buyer fit, and data‑room readiness. See the sale process.
How much is my e‑commerce business worth?
Valuation is typically a multiple of annual net profit (SDE/EBITDA), adjusted for revenue growth, gross margin, LTV/CAC, channel diversification, returns/chargebacks, supplier risk, and seasonality. We produce a defensible range using AI‑assisted comps and sensitivities.
How do you value an e‑commerce business (methodology)?
We use AI‑assisted market comps plus drivers (margin, LTV/CAC, repeat rate, returns, SKU and supplier concentration, marketplace dependence) to produce a range with sensitivities. Details in How Valuation Works.
What documents do I need for due diligence?
Clean financials; GA4 and ad platform exports; Amazon/marketplace dashboards; cohort/LTV tables; SKU margin and inventory reports; supplier/3PL contracts; compliance docs; trademarks; SOPs. See process and value‑maximising prep.
How are revenue and margins verified?
Via accounting exports and bank statements reconciled with platform dashboards (Shopify/Amazon), ad platforms, and inventory/WMS; we test landed‑cost and returns assumptions and reconcile CAC/ROAS to revenue.
Do I need audited financials?
Not always. Accurate, verifiable books with reconciled revenue and consistent KPI reporting are usually sufficient; larger deals may request reviews or audits.
What are typical business broker fees?
Success‑based commission (sliding by deal size) is standard. Some brokers charge optional upfront fees for valuation/exit‑readiness deliverables that reduce time‑to‑close.
How do you keep the sale confidential?
NDA‑gated data rooms, anonymised teasers, and targeted outreach to vetted buyers only. Sensitive data is disclosed in stages.
What deal structures are common (cash vs earn‑out)?
A mix of cash at close plus earn‑out or deferred elements tied to gross profit/revenue is common; structure depends on risk, growth, and buyer type.
Asset sale vs share sale — what’s the difference?
Asset sales transfer selected assets (brand/IP, platform and marketplace accounts, inventory) and liabilities; share sales transfer the company as a whole. Outcomes vary by tax, liability, and operational continuity. Seek professional advice.
How are IP, inventory, and accounts transferred?
Through an agreed handover plan: trademarks and domains, platform/marketplace/admin accounts, ad platforms, email/SMS lists, and inventory at agreed valuation; sequenced to avoid downtime.
What support am I expected to provide after closing?
Typically a short transition and knowledge transfer period (weeks to months) defined in the APA/SPA; may include supplier introductions, 3PL handover, and SOP training.
How can I increase my valuation before going to market?
Improve margin (COGS/freight), lower returns, strengthen LTV/CAC, diversify channels, reduce SKU/supplier concentration, and document SOPs. Even small margin or return‑rate gains can move your multiple. See value maximisation.
Should I fix issues first or sell as‑is?
Fix high‑ROI items (data quality, returns/SKU issues, freight/COGS, risky supplier terms) before launching; major brand or catalogue overhauls rarely pay back pre‑sale. We’ll model the valuation impact either way.