One of the best things about growing an eCommerce business is that it can become a sellable asset.
To maximize the value of that asset, good eCommerce business brokers will help with:
- Preparing your business for sale by streamlining processes and cleaning up your books
- Valuing your business accurately
- Marketing your business to a wide range of potential buyers
- Negotiating a final sale and overseeing the legal procedure
But how do you find (and choose) the best eCommerce broker for potentially one of your life’s biggest transactions?
Well, in this guide, we’ll carefully review the top brokers in the industry and give you tips on how to make the right choice when the time comes.
The best eCommerce brokers at a glance
We’ve spoken to, interviewed, and worked with a vast amount of eCommerce business brokers over recent years and they differ greatly from one another.
If you’re in a rush, here’s our shortlist of the best of the best:
- EcomBrokers is the best for most sellers
- Empire Flippers is ideal for Amazon FBA
- Flippa is best for small businesses
- Quiet Light excels with its industry experience
- FE International is suited to large businesses
Selling your eCommerce business is a big deal, so let’s examine each of the options closely.
eCommerce business brokers guide
Choosing a business brokerage is a big decision. In this section, we’ll help you understand more about the role these specialists can play and their impact on your online business.
The role of an eCommerce brokerage
An eCommerce brokerage plays a pivotal role in the buying and selling of online businesses.
Acting as an intermediary, brokers facilitate transactions between sellers looking to exit their eCommerce business and buyers looking to enter or expand within the marketplace.
An online business broker brings expertise in valuing eCommerce businesses, marketing them to potential buyers, and negotiating favorable terms for both parties. By leveraging their network and industry knowledge, brokers can significantly expedite the sale process and ensure a fair deal for all involved.
eCommerce brokers also offer invaluable guidance throughout the entire sales process.
From preparing the business for sale by optimizing financials and operations to ensuring thorough due diligence, their comprehensive approach minimizes risks and maximizes the chances of a successful transaction.
For sellers, this means achieving the best possible price, while buyers gain confidence in the legitimacy and potential of their investment.
How much do business brokers cost?
The cost of hiring a business broker can vary widely depending on the complexity and value of the transaction.
Typically, eCommerce brokers charge a commission-based fee, which ranges from 10% to 15% of the business’s final sale price.
This fee structure aligns the broker’s interests with those of the seller, as the broker is incentivized to achieve the highest possible sale price.
If a broker is on a flat percentage commission, the incentive to achieve an extra 5-10% on your sale price may not be particularly high. In other words, they may be keen to get you a quick sale at, say, $1.8m rather than push for $2m. You can remedy this by negotiating custom terms that involve a bonus above a certain amount. As an example, in the same scenario, you could propose to double the commission percentage for anything over $1.8m.
In addition to the commission, some brokers may charge an upfront fee or retainer for initial valuation, marketing, and other preparatory services.
While the cost might seem significant, it’s important to consider the value that a professional broker brings to the table.
Their expertise can lead to a higher sale price, quicker transactions, and fewer complications, ultimately justifying the expense—both from a stress and financial perspective.
Additionally, brokers often handle time-consuming tasks such as buyer screenings, negotiations, and paperwork, allowing business owners to focus on running their operations until the sale is finalized.
Marketplaces vs brokers
When it comes to selling an eCommerce business, owners typically face a choice between using a broker or listing their business on a marketplace.
Marketplaces, such as Flippa and Empire Flippers, offer platforms where sellers can quickly list their businesses for a fee, attracting a broad audience of potential buyers.
These platforms can be cost-effective and provide significant exposure, but they require the seller to handle most aspects of the transaction, including marketing, negotiations, and due diligence.
In contrast, working with a broker offers a more hands-on, personalized service.
Brokers take on the heavy lifting of the sales process, from initial valuation to closing the deal, which can be particularly beneficial for owners who lack the time or expertise to manage these tasks independently.
While the broker’s commission might be higher than the fees associated with marketplaces, the tailored support and professional guidance can lead to a more efficient and profitable sale.
Ultimately, the choice depends on the seller’s priorities, resources, and comfort level with the complexities of the sale process.
Choosing an eCommerce business broker
Selecting the right eCommerce business broker is crucial to ensuring a smooth and successful transaction.
When evaluating potential brokers, consider:
- Experience: A broker with a strong background in eCommerce will have a deeper understanding of the market dynamics, valuation methods, and potential buyer pool, which can significantly impact the outcome of the sale.
- Network: A well-connected broker with access to a broad range of qualified buyers can increase your business’s visibility and attract competitive offers.
- Communication: Look for brokers who offer transparent communication and a clear plan for the sales process, including how they will market your business, screen potential buyers, and handle negotiations.
- References: Don’t hesitate to ask for references or testimonials from previous clients to gauge their satisfaction with the broker’s services.
- Trust: Selling a business is a significant and often emotional decision, so working with a broker who understands your goals, communicates effectively, and demonstrates integrity can make the process less stressful and more rewarding.
Take the time to interview multiple brokers, ask detailed questions, and choose one who aligns with your expectations and whom you feel comfortable working with.
