As eCommerce shifts from luxury to necessity, explore the strategic shortcut of acquiring existing websites. Discover the top 7 ecommerce marketplaces for buying or selling, crucial to your venture's success in the digital revolution.
eCommerce is no longer just about online commerce; it now includes many things - from cross-border commerce to international online retail and more. What was once a luxury has now become a necessity, no matter which segment or audience one caters to.
As per Worldwide eCommerce Forecast 2022, the global eCommerce industry can be valued at $6.3 billion in 2023 and can rise to $8.14 billion by 2026. By 2024, 21.2% of total retail sales are expected to be online.
In the midst of this digital revolution, the appeal of acquiring existing eCommerce websites has garnered significant attention. Rather than starting from scratch, entrepreneurs are recognizing the advantages of purchasing established online businesses. From a solid customer base to refined operational systems, buying an existing eCommerce website can provide a strategic shortcut to success.
Whether you're looking to buy or sell, the marketplace you choose plays a crucial role in determining the success of your venture. This article discusses the top 7 marketplaces to buy eCommerce websites from and what makes them unique from other online marketplaces.
1. Factors to consider before buying an eCommerce website
Before we get to the best marketplaces to buy eCommerce websites, we need to first look into the factors that you need to keep in mind before making any decision. Before buying any e-commerce website, you need to look into a few aspects, such as:
Niche selection and expertise
Find a business in a niche or industry that you know about or have expertise in. Understanding the market you're entering enhances your ability to make informed decisions and adapt to industry trends. It will also ensure that you can relate to the products, operations, and services of the industry, which will ultimately help you in the long term.
Financial Considerations
Next, evaluate the financial investment and payback period for the website that you are considering. A thorough financial analysis should include reviewing historical financial data, future growth projections, and potential risks.
Ensure that the purchase aligns with your budget and financial goals, and be prepared to negotiate terms that make the acquisition financially viable.
Technical aspects and platform compatibility
The marketplace page of each web business should mention the platform's technical and compatibility requirements. Make sure you check this before you make any decision.
Consider the platform it's built on, the scalability of the technology, and the compatibility with your existing systems or preferred platforms. Knowing this will help you make a seamless transition and integration, minimizing any risks or downtime due to the change in ownership.
Traffic and customer base analysis
Finally, examine the website’s traffic and customer base. This is important because you want a website with good traffic from both organic and paid sources.
Analyzing demographics and purchasing behavior will also help you create the right marketing strategies once you acquire the website, helping you grow the business from its existing base to a more solid business.
2. Top marketplaces for eCommerce websites
Now, without further ado, let us look into the 7 top marketplaces for buying and selling eCommerce websites:
1. Flippa
Flippa is one of the world’s best online marketplaces specifically dedicated to buying and selling digital assets. The store was founded in 2009 and offers diverse listings, including online businesses, apps, digital services, Shopify stores, Domains, Blogs, eCommerce stores, and more.
Flippa has over 3 million users who have bought or sold more than 300,000 assets on the platform, making it a reputed name in the industry.
You can buy eCommerce websites from Amazon FBA stores, Affiliate sites, Shopify stores, Dropshipping websites, SaaS web businesses, and Regular online stores.
Pros
The large user base of buyers and sellers makes it easy to find the niche or segment you seek.
Diverse listing that caters to multiple preferences and expertise
Generates due diligence reports and provides professional assistance in the acquisition
Options are available in every price range
Cons
Larger listing options make it difficult to find the right opportunities you seek.
The quality of businesses may vary, lacking comprehensive information
Auction dynamics can, at times, lead to unpredictable prices
You need to sign up to view business information
There is no doubt this is another great e-commerce marketplace, but you can also check out some Flippa alternatives to fulfill your business requirements.
Etsy is a specialized marketplace catering to handmade, vintage, and unique goods. Its interface is designed to showcase the artistic and crafty nature of the products available. The platform focuses on creating a community-driven shopping experience.
Types of eCommerce websites available
Etsy primarily features individual shops or small businesses that sell handmade or vintage items, as well as digital products. Unlike Flippa, Etsy is not a marketplace for general eCommerce businesses but rather for creators and artisans.
Pros
Niche focus on handmade and unique items
Established community of buyers and sellers
Cons
Limited to specific product categories
Lack of options for those looking to buy eCommerce websites for sale
IndiaMART is a prominent B2B online marketplace in India and the ideal place for listings for businesses of all types. The platform primarily connects buyers and sellers and includes a comprehensive supplier and product database.
Since the platform hosts extensive businesses and categories, the user interface may be slightly complex for new users. The platform can help you narrow down on specific sellers, but the discoverability of products, given the heavy competition and listings, can be tiresome.
Types of eCommerce websites available
IndiaMART primarily caters to B2B eCommerce, featuring a wide array of businesses offering products and services across various industries. It is a platform for manufacturers, wholesalers, and suppliers to connect with potential buyers.
Pros
Extensive database of suppliers and products
Facilitates business-to-business transactions
Allows for detailed product listings with specifications
Cons
More focused on bulk orders and wholesale transactions
Limited consumer-oriented features compared to other platforms
The user interface might be overwhelming for individuals seeking digital products or eCommerce website listings
The social media giant Facebook (now Meta) also has a marketplace as part of its digital offering. The Facebook app and website also host Facebook Marketplace, a dedicated space for buying and selling products. It has listings from brand-new products to second-hand items and supports both local and international shipping transactions.
Facebook Marketplace also allows the selling of digital assets, including eCommerce websites. However, there are limited options, given that the platform is mainly used by small businesses and individual sellers to sell their products or services.
Types of eCommerce websites available
Facebook Marketplace accommodates a diverse range of eCommerce offerings, from individual sellers to small businesses. Users can find everything from second-hand items to brand-new products.
Pros
Integrated within the widely used Facebook social media platform
Local buying and selling options for in-person transactions
Varied product categories, from electronics to clothing and digital products
Cons
Transactions might require more caution due to the nature of peer-to-peer selling
Since the main focus of Facebook is one social media, there is no dedicated eCommerce platform, which affects discoverability and listing
Seller due diligence and listing are limited, making it important for buyers to make an informed purchase decision and do a thorough background check
eBay is a globally recognized marketplace with a name for its consumer-to-consumer or business-to-consumer sales model. The platform is easy to use and has also expanded to digital products, including non-fungible tokens, digital arts, and collectibles.
eBay's auction-style listings and Buy It Now options cater to a diverse range of sellers and buyers. The USP of eBay is that you can sell just about anything on this platform, enabling you to find the best deals and sellers.
However, while the platform is extremely user-friendly and easy to use for sellers, it has limited quality controls for seller listings, making it crucial for customers to check listings and do thorough research before making any purchases.
Types of eCommerce websites available
eBay hosts a wide variety of eCommerce websites, ranging from individual sellers offering used items to established businesses selling new products. Sellers can utilize auction-style listings or set fixed prices, creating a dynamic marketplace for both new and used goods.
Pros
Global reach with diverse products and segments available
Both auction-style and fixed-price listings are available
Great buyer and seller protection policies
Cons
Quality control can vary among sellers
Intense competition among sellers
6. AliExpress
According to data from 2022, Alibaba Group is one of the world’s largest eCommerce marketplaces, with approximately USD 780 billion generated in 2022. AliExpress is the company’s online marketplace for eCommerce brands and sellers providing multiple products and services.
AliExpres connects Chinese businesses with international buyers and is popular in China. The platform’s popularity also has to do with its ease of use. It is extremely easy to become a seller on this eCommerce platform and sell multiple types of products. Additionally, there are helpful seller resources to help buyers make informed decisions.
Types of eCommerce websites available
Primarily an eCommerce marketplace, AliExpress offers limited options for buying websites. The platform is known for its direct-from-manufacturer model, which provides buyers with access to a wide range of goods and services at competitive prices.
Pros
Reasonable Fees
Ability to reach a global customer base
Easy-to-use interface and store builder
Cons
Lack of due diligence for sellers makes it imperative for the buyer to perform a background check before any purchase
Flipkart, now acquired by Walmart, is one of India’s biggest eCommerce marketplaces. Founded in 2007 by Sachin Bansal and Binny Bansal, it has since expanded to over 80 different categories, making it a one-stop shop for buying anything from apparel to books, electronics, two-wheelers, and home appliances.
In 2022, Flipkart also entered the Non-Fungible Tokens (NFT) and Web3 segment and offers several options for buying digital products.
Types of eCommerce websites available
Flipkart primarily operates as a business-to-consumer (B2C) eCommerce platform. It hosts various sellers, from individual sellers to established retailers. The platform focuses on retail sales rather than hosting separate eCommerce websites for businesses.
User-friendly interface with an excellent mobile app that enhances shopping experience
Regular sales and discounts
Cons
Fierce competition among sellers
Seller fees and commissions may impact profit margins
Limited to the Indian market, which may pose challenges for sellers targeting an international audience
3. Tips for a successful purchase
Although these marketplaces offer you several options to find eCommerce websites and discover sellers, it is worth taking your time to evaluate the seller before making any decision. For a successful purchase of an eCommerce website, make sure to follow these steps:
Conducting thorough due diligence
Make sure to thoroughly examine the seller for multiple areas, such as:
Financial data, including revenue, expenses, and profit margins. Verify the accuracy of this information with third-party data.
Traffic and demographics of the users.
Legal and Compliance checks, including contracts, licenses, and legal operations for operating in your preferred geography.
Customer and Supplier reviews and general standing in the market.
Negotiation strategies
Once you have done the due diligence, make sure to negotiate a fair deal. For this, you need to follow the steps below:
Determine a fair valuation based on the website's financial performance, market trends, and potential for future growth.
Bid price and make an offer that is reasonable but can help you get the valuation you expect.
Set clear boundaries and be prepared to walk away if the terms do not align with your business goals. Avoid making impulsive decisions under pressure.
Transition and handover process
Finally, once you have made a purchase, make sure to follow a handover process, including:
Clearly outlining expectations and timelines for the transition.
To ensure this happens seamlessly, necessary steps and documentation or systems are needed. This includes website hosting, domain registrations, and other critical platforms.
If applicable, plan for the transition of employees and communicate changes to customers transparently. Minimize disruptions during the handover period.
If the seller is providing post-sale support, ensure adequate training and knowledge transfer to facilitate a seamless transition of operations.
4. Risks and challenges
By meticulously following the steps outlined, the likelihood of any risks or potential pitfalls can be minimized. However, the success of eCommerce website purchase hinges on your ability to execute the acquisition and take the business to the next level.
Some of the potential risks and challenges in buying an eCommerce website include:
Websites that offer good products or services but do not have a good reputation in the market may be a problem. This could be due to negative reviews or unethical business practices impacting customer trust. Avoid such websites or consider rebranding if necessary.
Using outdated technology or complex systems makes providing technical assistance for transition difficult. Before you purchase, you should access the website's technology stack and consider the long-term viability of the existing technology.
Undisclosed legal issues or pending lawsuits can pose an issue if the seller does not provide clear information. To mitigate this, it is always recommended to have a legal review and have your legal team scrutinize contract terms and potential liabilities and ask for disclosure of any pending lawsuits.
Conclusion
Online marketplaces offer several benefits to those looking to buy or sell eCommerce websites. By discovering or purchasing a website through an online marketplace, buyers can get some assurance about support or even quality, depending on your chosen platform.
However, we highly recommend doing your due diligence and ensuring you check the seller’s reputation before making any decisions.
In closing, acquiring an eCommerce website is an adventure filled with potential. Navigate it wisely, learn from your experiences, and contribute to the ever-evolving tapestry of the eCommerce market.
I'm a digital marketing specialist fueled by passion. Beyond the realm of marketing, I find solace in the art of reading and writing, weaving captivating narratives and unlocking business potential with words. I belong to the Animal-Lovers tribe!