You want answers, not essays. This FAQ delivers exactly that: direct, no-fluff answers to the most common ecommerce valuation questions. Read it in 10 minutes. Use it to price your business accurately.
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Quick Answers (Top 5 Most Common Questions)
1. What’s my business worth?
2.5x-3.5x annual SDE. Calculate SDE as net profit + owner salary + personal expenses + one-time costs. Multiply. That’s your range.
2. How do I get a quick estimate?
Take your annual SDE. Multiply by 2.5x for a conservative floor and 3.5x for an optimistic ceiling. For $80K SDE: $200K-$280K. Full guide: SDE calculation.
3. What factors increase value most?
Diversified traffic (biggest impact), low owner hours, strong growth, stable margins, and 36+ months age. These five factors drive your multiple.
4. What’s my biggest vulnerability?
Single-channel traffic and founder dependence. If 80% of traffic comes from one source or you work 30+ hours weekly, buyers will discount heavily.
5. Is a free valuation accurate?
A good SDE-based calculator is within 10-15%. A revenue-only tool can be off by 50%. Use the right tool with accurate inputs.
Advanced Valuation Questions
6. What are add-backs?
Owner salary, personal expenses, and one-time costs that won’t recur after sale. They increase SDE by 15-25%. Document everything. See our add-backs guide.
7. Does my email list count?
Yes. $1-$3 per engaged subscriber. 10,000 subscribers add $10,000-$30,000. This is above and beyond the SDE multiple.
8. How is inventory valued?
50-100% of cost depending on age and turnover. Under 60 days: 100%. 60-180 days: 70-85%. 180+ days: near zero.
9. Should I get professional help?
For businesses over $100K, a broker’s comparable sales data and negotiation skills often pay for themselves. See our broker guide.
10. Can I improve my value in 90 days?
Yes. Document SOPs (30 days), reduce owner hours (90 days), and launch email marketing (60 days). These can add 0.3x-0.5x to your multiple.
Timing & Process Questions
11. How long does the sale take?
60-120 days from listing to closing. Preparation takes 3-6 months before listing. Plan accordingly.
12. What do buyers verify?
Revenue, traffic, margins, supplier contracts, and customer data. They cross-reference everything against bank statements. Accuracy matters.
13. How should I price my listing?
5-10% above your target. Buyers negotiate. Leave room. Never list at your floor.
Risk & Red Flags
14. What causes a lowball offer?
Buyers spot weaknesses: single-channel traffic, high owner hours, thin margins, or young age. Each weakness is a discount point for them.
15. What’s the fastest way to kill a deal?
Hide problems. Buyers find everything. Disclosure builds trust. Hiding destroys it—and kills the deal.
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