This business, which has been in operation for four years, is an online store utilizing a popular e-commerce platform. It currently generates a monthly revenue of $16,366. The business operates with a profit margin of 20%, indicating that it retains 20% of its revenue as profit after expenses are deducted.
The business is currently valued at a 3.2x earnings multiple. This valuation metric suggests that the price of the business is 3.2 times its yearly profits. This multiple is often used in business sales to provide a common measure of a business's worth based on its ability to generate profit.
Given these financial parameters, the store presents an organized financial profile that may be attractive to potential buyers looking for a business with established revenue and a clear profit structure. The implication of the 3.2x multiple is that it may take just over three years, based on current profit levels, to recover the investment from purchasing the business.
This business represents an opportunity for an investor interested in entering or expanding their presence in the e-commerce market, particularly with operations tied to a well-known fulfillment service. Through its focus on profitability and strategic valuation, the business stands as a potentially viable option for growth-oriented buyers.
Flippa’s platform is free for buyers. Here are our tips for first-time buyers:
Before making an offer
1. Look for verified sellers. Sellers should verify their email, phone, and government ID. When a seller has completed all verifications, we identify them with a checkmark like this:
2. Review financials. Financials are seller-provided inputs. Always ask for verified financials. Ask for a tax return or request access to their dashboard. if it’s an ecommerce store get a transaction report.
3. Review traffic. Sellers can grant you access to Google Analytics. Ask for read-only access to verify site traffic.
4. Schedule a call. Communication is key. The best way to find out more is to speak directly with the seller. For your protection, keep all communication within Flippa.
5. Make the offer on Flippa. We’re here to help. Flippa does not charge buyers and by making an offer on Flippa you’ll get access to our post-sales support team.
1. Agreements & Contracts.
Connect with a US-based lawyer or purchase asset-specific template legal documents via Flippa Legal.
2. Conduct Due Diligence.
You can conduct this yourself, or use our new official verification and assessment service. We provide a deep analysis, identify hidden risks, and independently assess the value of the business. Packages start at $1,000. Learn More