Businesses For Sale - E-commerce

The growth of e-commerce in the UK is nothing short of magnificent. According to the latest figures for 2024, online shopping accounted for 30% of the UK’s retail sector, rising from 21.6% in 2019. And there are no signs that this is about to slow down anytime soon.

With e-commerce offering instant access to an international audience without the startup costs of a traditional brick-and-mortar company, it’s no surprise to see that this is the direction so many Brits are heading when launching a business.

At Cogogo, we offer a range of active e-commerce company listings to help you skip those awkward startup phases and jump right into a thriving operation. Check out our latest e-commerce businesses for sale now.

Investing in an e-commerce business

At the last count in 2022, there were 295,000 e-commerce businesses in the UK. Today, it’s expected to be much higher.

Why invest in an e-commerce business for sale? These types of businesses have some innate advantages that ordinary retail firms lack, including:

• Growing Market – We’ve all heard about the UK’s high street struggles, but e-commerce bucks the trend, boasting one of the world’s largest e-commerce markets, behind only players like the U.S. and China.
• Motivated Customer Base – UK shoppers are comfortable with buying online, valuing the convenience of the digital experience. Approximately 34% of shoppers buy online at least once a week.
• Lower Costs – You’re not worrying about the rent and utility bills of running a physical store. Many successful e-commerce stores are actually operated from people’s homes with a little bit of outsourcing.
• Reduced Red Tape – Since you’ve got reduced staffing needs and you’re not welcoming in-person customers, you’re not worrying about health and safety regulations, various types of insurance, and other types of form-filling.
• Flexibility – It’s simple to scale with new products and adapt to market trends because these businesses are fundamentally designed to be nimble.

If you’re the type of entrepreneur who’s not fussed about having a giant storefront on Oxford Street and want minimal bureaucratic headaches, an e-commerce store for sale in the UK could be the way to go.

How to find an e-commerce business for sale online

Buying a business isn’t as straightforward as buying a house or a car. The challenge is a lack of a centralised market for buying and selling UK companies, meaning you’re often relying on a combination of channels to uncover opportunities.

If you’re ready to buy an e-commerce business in the UK, the top channels are:

• Online marketplaces and business sales directories, like Cogogo.
• Business broker networks, where you can take advantage of dedicated brokers.
• Prospecting through online marketing, social media, or even heading to in-person trade shows.

It’s also worth mentioning that many established businesses never make it onto the market but are sold by word of mouth. That’s why it’s worth tapping up your own network to see if anyone’s heard of an e-commerce opportunity.

How you can value an online business effectively

Online businesses aren’t structured in the same way as a classic brick-and-mortar operation. That means the valuation process works a little differently. Either way, the answer to valuing an online business in the UK is to consult a professional valuation agent with direct experience in valuing these types of companies.

But what valuation factors are most likely to be used for an online company?

• Seller’s Discretionary Earnings (SDE) Multiples – SDE is most common for small e-commerce businesses by standardising the comparison variables to the owner.
• Revenue–Based Multiples – Where options like SDE are insufficient, such as when you’re dealing with a fast-growing operation, revenue-based multiples are used in case earnings are in the negative.
• Customer–Focused Metrics – Key metrics may include Customer Acquisition Cost (CAC), Customer Lifetime Value (CLV), and customer churn to assess the future profitability and sustainability of a company.
• Comparable Company Analysis – Another option is to examine recent e-commerce businesses that have been sold on the market. If there’s sufficient data to draw from, this may be the most straightforward way of doing it.
• Venture Capital (VC) Method – Operations expected to seek substantial funding and experience considerable growth may estimate future value based on potential investments and work their way backwards to determine what a startup is worth now.

Naturally, the correct valuation method isn’t the same for everybody. The best option is to contact a professional valuation agent who will select the most appropriate method for valuing an online business.