Selling your ecommerce business ($5M+) -advice from Providium - a podcast by Michael Veazey

How to Sell your Ecommerce business for a $5M+ valuation

What do you need to do if you are selling your ecommerce business worth over $5 million?

Buyer types for $5M+ businesses

Selling your ecommerce business for a higher valuation is in some ways actually easier than selling a smaller business. Certainly, there are more buyer types for higher-value businesses.

Buyer groups

- individuals who pool their money - informal

Investor groups

Family offices

Wealthy family has generational wealth - instead of outside investment co, create internal office





Click below to estimate the value of your business

Estimate your business value



Before you start selling your ecommerce business: Get very organised!



* Financials

* Ideas and plans for growth

* Operational standpoint



* What would right way to scale be?

* Supply chain etc.





* Think through what buyer will want to know your opinion on



Common Q from Buyers “if you weren’t selling your ecommerce business and you wanted it to double in size, what would you do?

This can be pretty deep







* Acquiring new products

* Finance

* logistics

* Marketing







Timescale for preparing to sell your business

If it’s within a few months:

Not a lot you can do to change your business that will have a big impact

6-12 months out

Understanding what market will want - and get it done

Eg you have a brand on Amazon, get the trademarks secured

Start expansion process

Eg sell a lot of kitchen products under brand -



* 3 new products



* find a source for them

* Put them into motion







Global Wired Advisors can help buyers dig into the process

If you are selling your ecommerce business for higher values, you want to move buyers to thinking beyond just multiples.

Global Wired Advisors help buyers strategise around this.

What does that look like?



* Wholesale

* Off amazon



* Other marketplaces

* Sell on website





* International



Global wired does a free consultation

Get seller to start thinking about what does it

Do ecommerce business owners have to be based in USA to sell their businesses?

No it’s a very international market - because of how Amazon works and technology.

There are owners based all over the world.

They may live in Spain and sell in USA or vice versa.

Selling businesses across the globe is actually quite easy.

There are a lot of international buyers for US businesses and vice versa

Recent trend: successful amazon sellers are very focussed on non US markets, because the US market for amazon is so saturated and competitive.

Most successful sellers are in multiple countries.

What do you need to think when selling your ecommerce business worth over  $10 Million?

Private Equity

Similar to smaller businesses but it’s amplified.

The buyers know exactly what they want and don’t want.

More money is at risk.

The right Buyer for your business starts to come in a more specific fit.

Eg PE group that really loves beauty products

A great business but which doesn’t do beauty won’t sell to them.

Businesses fall into buckets and  it’s about a right fit between your ecommerce business and the acquiring company.

If someone’s going to pay $20m even though cashflow is in place



* even more organised

* Tightly managed supply chain

Further episodes of Amazing FBA Amazon and ECommerce Podcast, for Amazon Private Label Sellers, Shopify, Magento or Woocommerce business owners, and other e-commerce sellers and digital entrepreneurs.

Further podcasts by Michael Veazey

Website of Michael Veazey