Sell your Shopify store.

Yes, a Shopify store can be listed for sale on an online marketplace platform. It can also be sold via a broker or as a direct sale between the owner and the buyer. Because a Shopify store is an Ecommerce business, a sale may involve assets such as its website, domain name, and brand, along with its inventory, customer data, and supplier arrangements.

Before listing a Shopify store to sell, it is important that sellers prepare all the important information that a buyer would want to assess. This is likely to include financial records, profit and loss statements, data analytics, web traffic numbers, inventory levels, and details about how involved the owner is in the day-to-day operations of the store.

A Shopify store can be listed to sell on an online marketplace like Flippa, where a seller can create a listing to attract prospective buyers. Sellers can choose to conduct the sale themselves or engage a broker to handle the process. The method a seller chooses will depend on the size and complexity of their business, the support they need, and the fees they are prepared to pay.

A Shopify store can be sold either via a listing on an online marketplace or via a broker service. Marketplaces give sellers the flexibility over how much control they want over the sale. Sellers create their own listing and communicate directly with prospective buyers. A broker handles each stage of the sales process, from help with valuation to identifying buyers, negotiation, due diligence, and final transfer.

Whether it is better to sell a Shopify store via an online marketplace or with a broker is subjective. The choice a seller makes will depend on the size and complexity of the business, the level of support required, and the fees the seller is prepared to pay. Broker services tend to have higher upfront costs than self-service marketplace listing options. However, the total cost may vary as both options generally include a success fee, which is a percentage of the sale price if the Shopify store sells.

Shopify stores can sell for a wide variety of multiples. The multiple is usually applied to a financial metric such as seller's discretionary earnings (SDE) or earnings before interest, taxes, depreciation, and amortization (EBITDA). Smaller, owner-run Shopify stores are more commonly valued using a multiple of SDE, while larger, more complex businesses often use an EBITDA multiple.

The exact multiple that a Shopify store sells for will depend on factors including profitability, store size, customer base, and level of owner involvement in day-to-day operations. A store that has consistent profits, diverse traffic, and reliable supply chains may sell for a higher multiple than a store with declining sales, concentrated traffic sources, and a high level of dependence on the owner's knowledge. Other factors that may influence the multiple a store sells for include repeat customers, customer acquisition costs, growth potential, market competition, and the sustainability of profits.

Sellers can use recent sales of comparable businesses on platforms like Flippa to help establish a guide multiple for a valuation of their Shopify store. An online valuation calculator can also provide guidance, although any results are indicative only and should be considered alongside other valuation factors.

Selling a Shopify store can take anywhere from a few weeks to several months, or longer. Factors that influence the speed of a sale can include how prepared the seller is, the size and complexity of the business, its asking price, market demand, and the store's financial performance. Smaller stores with straightforward operations and consistent profits may sell more quickly than a larger business with more complex operations and a longer due diligence process.

There are several stages to selling a Shopify store, and each can influence the time it takes to sell. These include preparing financial and supporting information, creating a listing, engaging and negotiating with buyers, completing due diligence, and transferring all the store's data and assets to the new owner. Preparing the business and its documentation thoroughly before listing can help avoid unnecessary delays once a potential buyer is found.

Online marketplaces like Flippa provide sellers with access to a large pool of global buyers when they want to sell a Shopify store. Sellers on Flippa can choose a self-service package to manage the sale themselves or use a broker who handles the sale process. Flippa reports that, on average, businesses that use a broker sell twice as fast as those using self-service options.

When a Shopify store is sold, the seller will generally need to transfer the Shopify account to the new owner. The exact process will depend on the details of what's included in the sale and how the store is structured. If the Shopify account is included in the sale, the seller must ensure it is transferred to the buyer in a timely manner to allow the new owner to operate the store.

Situations in which the Shopify account is not transferred to a buyer when a Shopify store sells are typically when only part of the business is sold. For example, a seller might sell the brand, domain, and inventory and set up a new account for the buyer. However, if the buyer is acquiring the Shopify store as an operating business, transferring ownership of the store, including the Shopify account, is likely to be required.

The sales agreement for selling a Shopify store should clearly state exactly what will be transferred as part of the sale, including the Shopify account. The transfer should take place as part of the agreed transaction process, with the buyer receiving account access once the sale conditions have been met. Sellers should also check Shopify's conditions for transferring an account before completing a sale.

When assessing a Shopify store, buyers typically want to see financial data that demonstrates the store's revenue, profitability, costs, and tax liabilities. The exact information required will depend on the store's size and complexity.

The financial data about a Shopify store that buyers may ask to see can include:

• Profit and loss statements detailing the store's revenue, expenses, and profit over time
• Balance sheets that set out the store's assets and liabilities
• Sales data setting out trends over time and sources of revenue
• Cash flow data that shows where money comes into and flows out of the business
• Bank and payment processing information to verify reported revenue and cash flow
• Tax returns to verify financial performance
• Details of add-backs where appropriate to calculate Seller's Discretionary Earnings (SDE)
• Inventory information that details stock on hand and future obligations and costs

Prospective buyers of a Shopify store may also want to review information that can affect financial performance. This can include web traffic analytics, supplier costs, and customer acquisition costs. As negotiations progress, sellers should be prepared to provide more detailed information as part of due diligence. With services like Flippa, sellers can require buyers to sign a non-disclosure agreement (NDA) before viewing financial data.

To sell a Shopify store with Flippa, sellers need to prepare information about the business, choose a sales package, create a listing, connect with potential buyers, facilitate due diligence, and complete the transaction by transferring assets to the new owner.

The main steps to sell a Shopify store with Flippa are:

1. Prepare financial information about the store. Data such as revenue, profit and loss, and liabilities will help with valuation, and are likely to be requested by potential buyers.
2. Value the business. Combine financial information with a review of recent sales of comparable businesses to establish a realistic asking price. Flippa's free valuation calculator can help.
3. Choose a sales package. Flippa offers self-service options with different levels of support and promotion. Fees for sales packages vary. Sellers can also select to use a broker who handles the sale on their behalf.
4. Create a listing. Provide information about the Shopify store, including its financial performance, products, traffic, customers, and operations. Sellers can request that buyers sign a non-disclosure agreement (NDA) before viewing such information.
5. Connect with buyers. Respond promptly to inquiries and provide additional information as appropriate.
6. Facilitate due diligence. A prospective buyer may want to review the store's financial records, analytics, assets, and other information before making an offer.
7. Complete the sale. Once the sale conditions are met, the seller transfers the business assets to the buyer.

Flippa allows sellers to control access to confidential supplier and revenue data when listing a Shopify store for sale. Sensitive information such as supplier details, revenue data, and financial records does not have to be publicly displayed on a marketplace listing.

Sellers on Flippa can require buyers to sign a non-disclosure agreement (NDA) before viewing any confidential information. An NDA typically means that the buyer must keep specified information confidential and limits how they can disclose that information to others. For a Shopify store, this could include revenue and profit figures, bank statements, customer data, supplier names and pricing, advertising performance, business processes, and other commercially sensitive information.

When selling a Shopify store with Flippa, sellers should provide enough financial and operational information in their listing for potential buyers to assess the business, but also take appropriate steps to protect commercially sensitive information. Sellers should consider which information needs to be disclosed at each stage of the transaction and only provide sensitive data when appropriate.

The specific confidentiality features available to a seller of a Shopify store on Flippa vary depending on the sales package they choose. Some packages include them in the price; others provide them as optional extras. If a seller opts to use a broker, the broker can facilitate any confidentiality agreements.