How much would you pay for an e-commerce website

by feedia
3 replies
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I find that many services that 'value' website worth online are BS! You can go to three, and find that the same website is worth $20 on one site, $3K on one site, and $200 on the other. The truth is, none of them have # of customers, # of sales, and profit information.

I know you can pay a service to get those results (if you own a website), but I am curious what you guys think!

Website has been around since 2007. Currently (in the last year) had over 550+ customers, 560+ sales, and made a profit of $5,000. (*down from previous years - read below)
Also made another $4K on ebay.

No previous years info is available - but claims to have sold $20K the previous year (with $12K profit) - *they used to accept paypal - sales last year fell by a lot without paypal payments)

The website is now offering paypal again (along with credit cards and bitcoin) and starting to sell on amazon.

What would you pay for the website? Or value it at? (Roughly)
#ecommerce #pay #website
  • Profile picture of the author Daniel J
    It's really difficult to say with limited information. Definitely get as much accurate information as possible- preferably in writing and documents (paypal/bank statements- google analytics etc). Once you have reliable data, the general rule is a business/website is worth 1-3 times what it would earn in a year based on the last YEAR of earnings. You can't go off of "potential" or earnings 2 or 3 years ago. Things change and even if the site WAS making $20K 2 years ago, 2013 and 2012 are very different. 1 year can make or break a business. Good luck!
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  • Profile picture of the author businesscircle
    Before you go, check website anaytics, paypal invoices, website organic ranking, traffic vs conversion ratio etc before you invest.
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  • Profile picture of the author lottorevenues
    it's not only the traffic or "time online" it's also the branding and business model of each site.
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