Sell My Dropshipping Business – AI-Powered Brokerage & Valuation

Q: How long does it take to sell a dropshipping business?

Most sales complete in 2–4 months from preparation to close, depending on size, profit quality after ad spend, buyer fit, supplier/3PL readiness, and data‑room readiness.

Q: How much is my dropshipping business worth?

Valuation is typically a multiple of annual net profit (SDE) adjusted for MER/CAC, AOV, LTV/repeat rate, refund/chargeback rates, supplier/traffic concentration, seasonality, and compliance/tax risk.

Q: What documents do I need for due diligence?

Clean financials; Shopify/Shopline/Woo exports; GA4; Meta/Google/TikTok Ads; Klaviyo; processor statements; supplier/3PL contracts; inventory/PO reports; policies; trademarks; tax/VAT filings.

Q: How are revenue and ad metrics verified?

Via platform analytics, ad accounts, processor payouts, and bank statements, reconciled to detect anomalies in CAC, MER, or refund rates.

Thinking of an exit? Get a data-driven valuation, a buyer-ready package, and a confidential process designed for Shopify/Shopline/Woo dropship brands.

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AI-assisted comps

Data-room ready

Clear terms

How Much Is My Dropshipping Business Worth?

Short answer: Valuation ≈ annual net profit (SDE) × market multiple, adjusted for revenue growth, margins after ad spend (MER/ROAS), repeat rate/LTV, AOV & CAC, SKU/supplier concentration, fulfilment reliability (3PL/agents), chargebacks/refunds, and platform/policy risk.

Valuation, in brief (5 steps)

Choose method: SDE multiple for most owner‑operated stores; EBITDA for larger teams/brands.
Normalise metrics: GAAP P&L, ad spend (Meta/Google/TikTok), MER, CAC, AOV, LTV, refunds/chargebacks.
Benchmark with comps: niche, GEO mix, seasonality, SKU breadth, supplier terms/lead times, channel mix.
Adjust for risk: ad‑account bans, reliance on single product/traffic source, supplier dependence, tax/VAT nexus.
Run scenarios: base / upside / de‑risked (e.g., better supplier terms, creative testing cadence), then set a defensible range.

Dropshipping Valuation Multiples in 2025 (Indicative)

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

Profile	Basis	Indicative Range*
Owner‑operated, <$250k annual profit	SDE multiple	~2.0×–3.2× SDE
$250k–$1m annual profit, steady growth	SDE multiple	~2.75×–4.25× SDE
$1m+ annual profit, brand‑like ops	EBITDA multiple	~3.5×–6.0× EBITDA

*Illustrative bands only; actual outcomes depend on growth, MER/CAC efficiency, repeat rate/LTV, supplier & traffic concentration, chargebacks/refunds, buyer type, and market conditions.

How We Value Dropshipping: Profit Quality, MER/ROAS, LTV:CAC

Driver	Strong Signal	Effect on Multiple
Revenue/Profit Growth	Consistent MoM growth with tested creatives and new SKU pipeline	Higher (durability of growth)
Unit Economics	LTV:CAC ≥ 3:1; MER ≥ 2.5; stable CAC; low refund/chargeback rate	Higher (efficient growth)
Gross Margin	≥ 60% pre‑ads; ≥ 20% after ads/ops	Higher (profit resilience)
Customer Repeat Rate	30%+ repeat within 12 months (where applicable)	Higher (predictability)
Concentration Risk	No SKU > 25% sales; no single ad platform > 60%; multiple suppliers/3PLs	Higher (lower volatility)
Ops & Compliance	Reliable fulfilment SLAs; clear policies; tax/VAT compliance	Higher (smoother diligence)

SDE vs EBITDA for Dropshipping: Which One Matters?

Most dropshipping exits price on SDE (profit + reasonable owner pay + normalised add‑backs). Larger, systemised brands trend to EBITDA. We compute both and align to the likely buyer pool.

How our AI model improves the valuation

Maps your store metrics to live deal/comparable bands (niche, MER, CAC, repeat rate, seasonality).
Runs sensitivity on CAC, MER, AOV, supplier costs, and refund rate to show multiple uplift.
Ranks buyer fit (aggregator/brand/financial) to indicate likely price/structure scenarios.

Example (illustrative): Net profit $420k; MER 3.1; CAC $18; AOV $78; repeat 28%; refunds 3.2%; diversified suppliers → AI comps produce a defensible range and show how −$2 CAC or −1% refunds shifts the range upward.

What to prepare (faster valuation)

Last 24 months P&L/BS/CF; channel‑level revenue and ad spend; refunds/chargebacks report.
Platform exports: Shopify/Shopline/Woo, GA4, Meta/Google/TikTok Ads, Klaviyo/CRM, Stripe/PayPal.
SKU performance (top 50), COGS by supplier, lead times, PO history, inventory/3PL reports.
Traffic mix (paid/search/email/influencer); GEO split; returning customer rate; subscription data (if any).
Contracts & policies: supplier/agent agreements, 3PL SLAs, warranties/returns, tax/VAT registrations.

Quick answers:

Is it valued on revenue or profit? Mostly on SDE for dropshipping; EBITDA for larger, brand‑like operations.

What improves my multiple fastest? Lower CAC/stronger MER, lower refund/chargeback rates, diversified suppliers/traffic, and documented SOPs/compliance.

Do chargebacks kill deals? High rates depress multiples, but process fixes (QA, shipping times, policy clarity) can restore value.

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How Long Does an E‑commerce Exit Take? (Typical 2–4 Month Timeline)

Phase	Weeks	What Happens
Preparation	1–2	Normalise financials & analytics; assemble docs; create CIM; data room setup.
Outreach & IOIs	1–3	Targeted buyer list; NDAs; teaser/CIM distribution; initial Q&A (niche & GEO fit).
LOIs & Negotiation	1–2	Term negotiation (price, structure, earn‑out); select preferred LOI.
Due Diligence	3–6	Financial, legal, operations, supplier/3PL checks; analytics & ads verification.
Closing & Handover	1–2	Legals, funds flow, inventory/3PL & account transfers; transition plan.

Timelines vary by deal size, data quality, and buyer type. Clean books, reliable fulfilment, and a complete data room compress time‑to‑close.

Dropshipping Sale Process (Step-by-Step)

Preparation: normalise financials, verify analytics (GA4, Meta/Google/TikTok), review supplier/3PL contracts and policies.
Packaging: CIM/teaser, KPI deck (MER/CAC/LTV/AOV/refunds), and secure data room.
Buyer Outreach: confidential, thesis‑based approach to qualified buyers; NDAs first.
Offers & Negotiation: manage Q&A; align on price & structure.
Due Diligence: coordinate financial, legal, operations, and analytics/ads 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/inventory and refunds/chargebacks mechanics finalised, funds‑flow and escrow arranged, and store/platform/tools transferred. A clear transition plan reduces post‑close risk.

Due-Diligence Checklist & Data-Room Index

Financials: last 24–36 months P&L/BS/CF; channel P&L; refunds/chargebacks; tax/VAT filings.
Analytics/Ads: GA4, Meta/Google/TikTok Ads, email (Klaviyo), CRM; cohort, LTV, CAC, MER, AOV.
Legal/Compliance: incorporation, cap table (if any), supplier/3PL contracts, policies (refund/warranty), trademarks, privacy/terms.
Operations: supplier list, PO history, COGS, lead times, 3PL SLAs, inventory reports, returns handling.
Commercial: top SKUs, pricing, bundles, GEO mix, traffic sources, influencers/affiliates, subscription data.
HR/Team: org chart, contractor agreements (media buyers, creatives, CX), SOPs.

Deal Structures & Terms

Element	What it is	Pros	Considerations
Asset vs Share	What the buyer purchases	Asset: cleaner; Share: continuity with vendors/accounts	Tax impact; liabilities; platform/app/3PL assignments
Earn-out	Deferred, performance‑linked	Bridges valuation gaps	Metrics (revenue, MER, refunds); control; reporting
Seller Note	Vendor financing	Faster close, better price	Interest, security, covenant terms
Escrow/Holdback	Funds reserved post‑close	Protects against surprises	Duration, claims (returns/chargebacks) process

Working Capital, Inventory & Refunds/Chargebacks

Expect a normalised working‑capital target at close. For dropshipping, inventory (if any), in‑transit POs, supplier pre‑payments, and pending refunds/chargebacks require clear treatment to avoid double‑counting or cash gaps. Define mechanics in the LOI.

Taxes & Legal Basics

Jurisdictions: outcomes differ (US/UK/EU). Sales tax/VAT nexus matters; obtain specialist advice early.
IP & Assignability: brand marks, creatives, UGC licensing, app/tool accounts, and supplier/3PL assignments.
Data & Policies: privacy/returns/warranty terms; cookie/consent; PCI/processor compliance; chargeback handling.
Non‑compete/Non‑solicit: scope, duration, and geography matter.

This is not tax or legal advice. Engage qualified advisers in your jurisdiction.

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Who Buys E‑commerce/Dropshipping Brands?

Strategic Buyers (brands/retailers): seek SKU/channel synergies, cross‑sell, and supply‑chain leverage.
Financial Buyers (aggregators/PE): disciplined underwriting, roll‑ups, structured deals.
Operators/Search Funds: hands‑on buyers professionalising ads, creatives, and supplier terms.

Broker Fees vs DIY

Path	Typical Cost	What You Get	When It Fits
Brokered	Commission (tiered) + minimal upfront	Packaging, buyer network, negotiation, DD coordination, supplier/3PL vetting	Limited time, larger buyer pool, price protection
DIY	Low fees; high time cost	You run outreach, Q&A, negotiation, legals, analytics/ads verification	Very small deals; existing buyer already sourced

Best Time to Sell a Dropshipping Business

Sell into momentum: clean books, durable profit after ad spend, stable MER/CAC, manageable refunds/chargebacks, reliable suppliers/3PL, and diversified traffic/SKU mix. If metrics are soft, a 2–3 month tune‑up (creative testing, supplier terms, CX/returns, GA4 clean‑up) can lift multiples.

Online Business Brokerage Services

E‑commerce/Dropshipping Sale Brokerage & Exit Advisory

We guide founders through the full sale — from financials/analytics preparation 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 (MER, CAC, refunds, supplier diversification, SOPs).

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)

Profile	Size	Outcome	Structure	Time to LOI
Drop‑ship – home gadgets	$380k annual profit	~3.4× SDE range	Cash + 9‑mo earn‑out	6 weeks
Drop‑ship – beauty accessories	$820k annual profit	~4.0× SDE range	Cash + seller note	8 weeks
Drop‑ship – fitness niche	$210k annual profit	~2.9× SDE range	Asset purchase	5 weeks

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

About Our AI-Native Brokerage

We specialise in e‑commerce 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, 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 a Dropshipping Business

How long does it take to sell a dropshipping business?

Most sales complete in 2–4 months from preparation to close, depending on size, profit quality after ad spend, buyer fit, supplier/3PL readiness, and data‑room completeness. See the sale process.

How much is my dropshipping business worth?

Valuation is typically a multiple of annual net profit (SDE), adjusted for MER/CAC, AOV, LTV/repeat rate, refund/chargeback rates, supplier/traffic concentration, seasonality, and compliance/tax risk. We produce a defensible range using AI‑assisted comps and sensitivities.

How do you value a dropshipping business (methodology)?

We use AI‑assisted market comps plus drivers (MER, CAC, AOV, LTV, refunds, supplier terms, traffic mix) to produce a range with sensitivities. Details in How Valuation Works.

What documents do I need for due diligence?

Clean financials; platform exports (Shopify/Shopline/Woo), GA4, Meta/Google/TikTok Ads, Klaviyo; Stripe/PayPal statements; supplier/3PL contracts; inventory/PO reports; policies; trademarks; tax/VAT filings. See process and value‑maximising prep.

How are revenue and ad metrics verified?

Via platform analytics (Shopify/GA4), ad accounts, processor payouts, and bank statements, reconciled to detect anomalies in CAC, MER, or refund rates.

Do I need audited financials?

Not always. Accurate, verifiable books with reconciled revenue and consistent analytics 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. Store identity and sensitive analytics are 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 revenue/MER or refund thresholds is common; structure depends on risk, growth, and buyer type.

Asset sale vs share sale — what’s the difference?

Asset sales transfer selected assets (domain, store, apps, trademarks, creative assets, pixel/data) and liabilities; share sales transfer the company as a whole. Outcomes vary by tax, liability, and operational continuity. Seek professional advice.

How are supplier, 3PL, and accounts transferred?

Through an agreed handover plan: supplier/agent introductions and assignments, 3PL account transfer, domains, app/tool accounts, pixels, and email lists — 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 media buyer/creative handover, supplier introductions, and SOP training.

How can I increase my valuation before going to market?

Improve MER and CAC via creative testing/landing pages, reduce refunds/chargebacks, diversify suppliers/traffic, implement CX/SOPs, and ensure tax/policy compliance. Even small improvements can move your multiple. See value maximisation.

Should I fix issues first or sell as‑is?

Fix high‑ROI items (data quality, supplier terms, refunds/chargebacks, policy compliance) before launching; big rebuilds rarely pay back pre‑sale. We’ll model the valuation impact either way.