How to Buy a Shopify Store (Best place and Tips to choose)

As reported by G2 Learn Hub, global e-commerce revenues are projected to rise to $6.4 trillion by 2024.

Given the ongoing evolution of the digital marketplace, entrepreneurs are increasingly considering purchasing an existing Shopify store as a shortcut to success, offering a proven track record, customer base, and infrastructure.

In this article, we’ll delve into the ins and outs of how to buy a Shopify store, walking you through the steps you need to take to make a strategic and well-informed investment in the e-commerce industry.

When should You buy a Shopify store?

To answer this question, let’s first look at some of the benefits of purchasing an already Shopify store:

• Skip the startup phase: You can start selling right away and potentially avoid the challenges of launching a new business from scratch.
• Established customer base: You inherit a group of existing customers who already trust the brand.
• Proven track record: You can see the store’s sales history, profitability, and growth trends to assess its potential.

Now, let’s check some good time to consider buying a Shopify store:

• If you want to be an entrepreneur but lack a specific business idea: Buying an established store gives you a ready-made business to manage.
• If you have experience in e-commerce and want to expand your portfolio: Acquiring another store can be a way to diversify your holdings and potentially increase revenue.
• If you find a store with a strong niche and growth potential: You can leverage the existing foundation and implement your own strategies to take the business to the next level.

However, even if you know you are in a good time to buy an existing Shopify store instead of creating a new one, this purchase still has many risks. To mitigate these risks and ensure a seamless purchase experience, we highly recommend delving into the details of our upcoming section.

Guide on How to buy a Shopify store

This guide will walk you through the entire process, from defining your goals to closing the deal, ensuring a smooth and informed purchase.

Step 1: Define Your Goals and Budget

Before diving into the search, take a step back and solidify your vision.

1.1. Niche Selection

• Identify your interests: What are you passionate about? Do you have specific product knowledge? Consider niches you’re genuinely enthusiastic about, as this passion will fuel your long-term commitment. For example, if you’re passionate about fitness, you may want to explore sub-niches like “fitness accessories” or “home gym equipment.”
• Market research: Don’t solely rely on passion. Research the market viability of your chosen niche. Use tools like Google Trends, SEMrush, Ahrefs to gauge search volume and identify potential sub-niches within your broader interest area:
• • Google Trends: A free and powerful tool for seeing search interest over time. Type in a product or niche, and it will show whether search interest is growing, stable, or declining. If you’re considering buying a store focused on “plant-based skincare,” Google Trends could show if there’s a growing trend in this area.
  • SEMrush: This is a paid tool, but it provides comprehensive insights into keyword search volumes, competitors, and market trends. Use it to uncover new keywords and assess the competition in the niche. Take an example, with SEMrush, you could discover that “vegan beauty products” is highly competitive but that a sub-niche like “cruelty-free makeup for sensitive skin” has less competition but steady demand.
  • Ahrefs: Use Ahrefs to explore backlinks and keyword performance. This will help you understand if competitors in your niche are dominating search results, giving you a better idea of the market difficulty.

1.2. Stage of Business

• Established stores: These stores come with a proven track record of sales, customer base, and potentially established brand recognition. The downside? They typically have a higher price tag.
• Newer Stores: Newer stores might be more budget-friendly, but they’ll likely require more effort to grow and establish.

Consider your risk tolerance and budget: If you’re new to e-commerce, starting with a newer store might be a good way to learn the ropes, while those with experience might prefer the stability of an established business.

1.3. Setting a Realistic Budget

• Purchase Price: This is the upfront cost of acquiring the store. Factor in the asking price listed by the seller.
• Operational Costs: Consider ongoing expenses like product sourcing, marketing, payment processing fees, and Shopify subscription fees. 
  • Shopify Subscription Fees: Shopify charges between $29 and $299/month depending on the plan (Basic, Shopify, or Advanced). You’ll need to factor this into your ongoing budget.
  • Ad Spend: Use Facebook Ads Manager or Google Ads to estimate your ad budget, depending on your marketing strategy. For instance, if you want to run ads for a fashion store, allocate a minimum of $1,000/month for testing ads.
  • Inventory and Shipping: If the store deals with physical products, budget for restocking inventory and shipping costs. Tools like ShipHero can help you manage fulfillment efficiently.
• Investment for Growth: Allocate funds for scaling the business, such as improving the website, increasing advertising spend, or expanding the product line. Also, you can use QuickBooks or Xero for budgeting and expense tracking, and set realistic financial projections based on industry standards.

Step 2: Find the Right Store

Now that you know what you’re looking for, it’s time to find the perfect Shopify store. There are best way to find a Shopify store: marketplaces and private sales. Both marketplaces and private sales have pros and cons when it comes to buying a Shopify store. Here’s a breakdown to help you decide:

2.1. Browse Marketplaces

Several online marketplaces specialize in connecting buyers and sellers of online businesses, including Shopify stores. 

Pros and cons of marketplaces: 

Pros:

• Wider Selection: Find stores in various niches and price ranges.
• Verification and Security: Some marketplaces offer basic verification processes and escrow services for added security.
• Easier Research: Metrics like traffic and estimated profitability might be readily available.

Cons:

• Less Information: Detailed financial information may be limited or require seller contact.
• Competition: Stores might receive multiple offers, potentially driving up the price.
• Fees: Marketplaces often charge listing and transaction fees.

Here are some popular platforms: Flippa, Empire Flippers, etc. We will break down information about these marketplaces in the following section of this article! But, first, let’s see how you can find suitable Shopify stores on these marketplaces. Follow the following steps:

• Search filters: Narrow down your search based on niche, revenue range, age of the store, and other criteria.
• Listing details: Review each listing carefully. Look for financials, traffic sources, and a clear description of the business model. (This will be covered in more detail in step 3)
• Contact sellers: Reach out to sellers who have stores that align with your criteria. Ask clarifying questions and request additional information.

Example: On Flippa, you could search for “Shopify stores” in the “Ecommerce” category. Filter by niche (e.g., “Sports & Outdoors”) and revenue range that aligns with your budget. Read through the listings that interest you and contact the sellers for further details.

2.2. Consider Private Sales

Explore stores advertised outside of marketplaces. Look for opportunities in:

• E-commerce forums: Many online forums cater to Shopify store owners. Some members might be looking to sell their businesses discreetly.
• Social media groups: Join Facebook groups focused on e-commerce or specific niches. You might come across posts from sellers looking for a good buyer.

However, like marketplaces, private sales have some benefits as well as downsides, such as:

Pros:

• Potentially Lower Price: Negotiation is possible, and competition may be lower.
• More Information: Direct communication with the seller can provide a more complete picture of the store’s health.
• Potentially Easier Transitions: The seller can offer guidance and support during the handover process.

Cons:

• Limited Selection: Finding the right store can take longer with fewer options.
• Due Diligence Burden: Requires extra effort to verify financial information and store performance.
• Higher Risk: No intermediary for dispute resolution if something goes wrong.

Step 3: Perform Due Diligence

This is a critical step, often referred to as investigating the business thoroughly. Don’t skip this!

3.1. Financials

• Request Detailed Financial Statements: Always ask for at least the last 12–24 months of financial records, including:
  • Profit & Loss Statement: Shows the store’s income and expenses.
  • Balance Sheet: Lists the store’s assets and liabilities.
  • Tax Returns: Ensure the financials match tax filings for transparency.
• Profitability Analysis:
  • Check for consistent profitability. Use QuickBooks or Xero to verify the accuracy of financial records.
  • Revenue Multiples: The most common valuation method for e-commerce businesses is applying a revenue multiple (often between 2x to 3x annual profits).

3.2. Traffic Sources

Understanding where the store’s customers come from is crucial for future marketing strategies.

• Traffic analytics: Request access to the store’s Google Analytics account. Analyze traffic sources like organic search, social media referrals, paid advertising, etc.
• Identify marketing channels: This will help you understand the seller’s current marketing efforts and determine where you might need to focus on

3.3. Inventory and Suppliers

A well-established inventory management system and reliable suppliers are essential for a smooth operation.

• Product sourcing: Ask the seller about their product sourcing strategy. Do they manufacture their products, dropship from a supplier, or use a wholesale model?
• Supplier information: Request contact details for key suppliers. This allows you to establish a relationship and potentially negotiate better pricing in the future.
• Inventory management system: Investigate the system used to track inventory levels and manage orders. Is it a manual system or a software solution?

3.4. Legal and Technical Aspects

• Intellectual property: Ensure the store owns the rights to its brand name, logo, and product designs. Request copies of any trademarks or copyrights.
• Legal history: Verify the store doesn’t have any outstanding legal issues or customer complaints. Consider involving a lawyer to review any legal documents.
• Technical platform: Understand the technical aspects of the store. What theme is it using? Are there any custom coding elements? This will help you assess potential migration costs or ongoing maintenance needs.

Tools for Technical Due Diligence:

• BuiltWith (Free plan available): This website allows you to identify the technologies used to build a website, including Shopify themes and plugins.
• Shopify theme store: Browse the official Shopify theme store to get an idea of the theme’s potential value and ongoing costs (if it’s a premium theme).

Step 4: Negotiate and Close the Deal

Once you’re happy with your due diligence, it’s time to negotiate the purchase price.

• Present your findings: Use the information gathered during due diligence to justify your offer. For example, if you identified areas requiring additional investment, you might use that as leverage to negotiate a lower price.
• Use a fair market value (FMV) calculator: Several online tools like Flippa’s FMV Tool and Empire Flippers’ estimate the fair market value of an e-commerce business based on factors like revenue and profitability. Utilize these tools as a starting point for negotiation, but remember, the final price depends on various factors.
• Involve a lawyer and accountant: Having legal and financial professionals on your side ensures a smooth handover process and protects your interests. They can review contracts, advise on tax implications, and handle the legal aspects of the transfer.

Important: Never rush the negotiation process. Take your time, ensure all your questions are answered, and feel comfortable with the final agreement before signing any contracts.

Step 5: Take Ownership and Grow Your Business

Congratulations! You’re now the proud owner of a Shopify store. The following steps will ensure a successful transition and growth trajectory:

• Data migration: Work with the seller and your developer (if needed) to migrate all store data, including products, customers, and orders, to your Shopify account.
• Update login credentials: Change all passwords and login details for the store and any associated accounts (email, hosting, etc.) to ensure complete security.
• Introduce yourself to customers: Craft a welcome email introducing yourself to the store’s existing customer base. Briefly explain the ownership change and assure them of continued exceptional service.
• Develop a growth plan: Analyze the store’s current performance and identify areas for improvement. Develop a strategic plan to expand the customer base, increase sales, and achieve your long-term goals.

Challenges of buying a Shopify store

Buying a Shopify store can be an attractive option for entrepreneurs looking to jumpstart their e-commerce business or expand their existing portfolio. However, it comes with its own set of challenges.

The following are some typical difficulties that come with purchasing a Shopify store:

• Due diligence. Precise financial data and knowledge of traffic sources are essential for accurate decision-making because depending on one source might be dangerous.
• Quality of assets. Assessing website design and code quality is advised, as poor design may require additional investment. Moreover, domain name quality and relevance are also considerable, because poorly chosen may impact branding and SEO.
• Supplier and inventory relationships. Review supplier contracts and relationships to ensure reliability and no outstanding issues. Also, assess inventory quality for physical products if the business involves them.
• Legal and compliance issues. The seller must ensure legal ownership of the business and its assets, avoid copyright or trademark infringement, and comply with local and international laws, including tax regulations and data protection laws.

Where to buy a Shopify store?

We’ve mentioned a guide on how to buy a Shopify store above. However, do you know where to get one? Don’t worry! Here’s a list of places to find a Shopify store for sale:

• Empire Flippers: Known for its strict vetting process, Empire Flippers specializes in profitable, established businesses. It offers detailed financial insights and secure escrow services, making it the go-to platform for buyers seeking transparency and stability in Shopify stores.
• BizBuySell: As one of the largest marketplaces, BizBuySell offers a broad selection of Shopify stores across multiple industries. It provides helpful tools like business valuation calculators and access to brokers, making it an excellent choice for those looking for diverse options and professional guidance.
• Latona’s: Latona’s caters to buyers seeking premium online businesses, particularly those with proven revenue streams. Offering curated, high-quality listings, this platform is perfect for experienced investors who desire personalized support throughout the purchase process.
• Flippa: Flippa provides a wide range of Shopify stores, featuring auction-style listings for competitive pricing. With its extensive user base, Flippa is well-suited for buyers who value flexibility and are open to exploring businesses across different niches and price points.
• FE International: Specializing in high-value, profitable online businesses, FE International offers expert advisory services and seamless end-to-end support. This platform is ideal for serious investors and seasoned buyers looking for premium Shopify stores backed by professional assistance.

For a more detailed exploration of these markets, check out this article: Shopify Stores for Sale: Where and How to Find?

Take action & buy a Shopify store!

Have you figured out how to buy a Shopify store yet? Hope you’ve got your answers! Now let’s get started and purchase a Shopify store right away!

By following the guidelines, aspirational business owners can buy a Shopify site that is in line with their goals. To ensure a smooth purchase process, keep in mind that comprehensive due diligence, open communication with the seller, and a thorough understanding of the company’s KPIs are essential.

So, if you’ve identified a promising Shopify store that aligns with your goals and preferences, don’t hesitate – take the next step and make your purchase.