How best to Sell Top Ranking E-Commerce Site

[bailey]

Hi Im new on here and wondered if any of you have any experience on the best way to offer an e-commerce shop site for sale. I am a experienced web designer who builds e-commerce sites for a living and have set up my own shop which in less than 18 months trading is already ranking in top 3 for all search terms on google.

How is the best way to go about valuation for this? is it only based on profit or can it also be taken into account the way the site is built and ranking for search engine optimisation as surely that is worth a great deal to an investor or buyer.

let me know your thoughts?

the site is brasandhoney.com

many thanks

[willitbe]

What search terms does it rank for?.

I tried Bras, Lingerie and Designer Lingerie and women's underwear and it doesn't come up.

[sysops]

I am a experienced web designer who builds e-commerce sites for a living and have set up my own shop which in less than 18 months trading is already ranking in top 3 for all search terms on google.

Blimey, for all search terms?? That's one hell of an achievement!


How is the best way to go about valuation for this? is it only based on profit or can it also be taken into account the way the site is built and ranking for search engine optimisation as surely that is worth a great deal to an investor or buyer.

Traffic is the single most important factor, at least it is for us when looking at buying a site.

Your site's current current stats don't quite stack up against your claims that it ranks very high. If it really is a high traffic site, and I'm completely missing something, please do let me know as we'd be interested in making an offer.

[bailey]

Hi sorry for the confusion, I should have been more clear, it ranks for key search terms such as the brand and product search terms ie freya lingerie, freya bras, freya bikini, freya bras, then is mostly first for each of the product name searches for example "freya darling harbour" "freya vodkatini" etc as its a niche shop (d plus sizes brand orientated) its not necessary to rank for such a wide term such as lingerie, women's underwear.

so how is the re-sale value worked out on traffic basis? ie if i have say 100,000 unique visits per year for example?

[sysops]

so how is the re-sale value worked out on traffic basis? ie if i have say 100,000 unique visits per year for example?

The way we do it is by looking at the sector, and coming up with a value/visit. This is how much gross profit you can expect to make from each visit. In consumer online retail, this is usually between 1p and £1. We then decide on a target payback period (usually 1 year), and base the offer price on those figures.

So let's say your sector has a value/visit of 10p, and your site gets 100k a year, and we want payback within 1 year. That would put the value at £10k.

The devil is in the detail - calculating the value/visit is the tricky bit, and you need to take into account a whole bunch of things to reach a realistic figure (or have access to data from a site in the same sector).

If 100k is your real traffic figure, then I'm afraid it's not very high :-(