Selling an ecommerce business is a significant milestone, often filled with excitement and apprehension. As an entrepreneur, you’ve likely invested countless hours and immense effort into building your business, making the sales process both rewarding and challenging. 

However, navigating this journey without stumbling over common pitfalls can substantially affect the outcome. Understanding and avoiding these frequent mistakes can help you secure the best deal and transition smoothly. 

Related Article: How an Ecommerce Broker Can Help You Sell Your Business for Maximum Value

What Mistakes Are Commonly Made When Selling an Ecommerce Business?

When selling an ecommerce business, many sellers unknowingly make mistakes that can jeopardize these deals. Here’s what to avoid:

• Inaccurately valuing your ecommerce business
• Being a difficult seller
• Keeping disorganized records 
• Breezing through due diligence
• Neglecting the business during the sales process 
• Overlooking the tax and legal ramifications of selling your business
• Being under or overly involved in the transition 

How to Avoid These Common Seller Mistakes

Steering clear of these mistakes requires a strategic approach and proactive measures. 

Obtain an accurate valuation

An accurate valuation is the key to moving from a mere listing to a legitimate offer. If you undervalue your ecommerce business, you could end up selling at a price that does not reflect the work you’ve put into it. If you overvalue the company, your listing won’t earn a closer look. 

There are a few ways to value your ecommerce business. You can use an online calculator that employs any of a variety of methods, or you can work with a qualified business broker who takes an in-depth look, considering all the nuances that basic numbers cannot accurately encapsulate. 

As a bonus, with an Advisor, you can get valuable insights into the strengths of your business and the areas for improvement to maximize its value before selling.

“An accurate valuation is the key to moving from a mere listing to a legitimate offer.”

Be a good seller

Selling your ecommerce business can be incredibly stressful and evoke a range of emotions. You’ve likely invested much time, effort, and passion into building it. Parting with something that is a significant part of your life is never easy. 

That being said, if you want a successful sale, maintaining a kind, likable, and professional demeanor is crucial. Any reasonable buyer would be deterred by a difficult seller. Being likable facilitates productive conversations, leading to better deals, higher sale prices, and a smoother overall experience for everyone involved. 

Remember that likeability is dimensional; in addition to kindness, it includes honesty and transparency. Straying from these principles can jeopardize the sale.

Honesty and transparency must be balanced with the need to protect proprietary information. This delicate dance often requires multifaceted expertise, so enlisting the guidance of a qualified business broker can be invaluable. 

“If you want a successful sale, maintaining a kind, likable, and professional demeanor is crucial.”

Maintain organized records

If your business records are a hot mess, you’re in no position to sell. 

Business documentation tells the story of your business and must include well-organized: 

• Bank statements
• Customer records
• Merchant statements
• Tax documents
• Media licenses
• Intellectual property

“If your business records are a hot mess, you’re in no position to sell.”

Conduct thorough due diligence 

Even if you run an incredibly tight ship, the due diligence process can bring up surprising—and even unnerving—information. While it may be tempting to turn a blind eye and breeze through due diligence, all parties should acknowledge and address any issues that may arise. 

No business is perfect. The best businesses are realistic about their strengths and weaknesses. Being detailed and thorough will build trust and confidence, both of which are crucial for a successful sale. 

“The best businesses are realistic about their strengths and weaknesses.”

Attend to the business during the sales process

One of the biggest pitfalls during the sales process is neglecting your business. If your business performance slips, even due to the distractions of selling, it can scare away potential buyers. If the buyers stick around, the deal terms may be less favorable.

It is crucial to ensure that your business remains strong and continues to achieve impressive results throughout the sales process. Solid performance keeps buyers interested and helps secure the best possible selling price.

“One of the biggest pitfalls during the sales process is neglecting your business.”

Consider the tax and legal ramifications of selling the business

Selling a business can have substantial tax and legal implications. To navigate these complexities, assemble a team of experienced lawyers, accountants, and business Advisors. This team will help you address every detail and avoid unforeseen issues, providing peace of mind throughout the sales process. 

Provide proper support during the transition 

Transferring your hard-earned knowledge and processes to the new owner can be challenging. During the transition process, giving the buyer everything they need to succeed is essential. It’s best to take the stance of an accessible expert but not a helicopter parent. Here are the key principles for a smooth transition: 

• Thoroughly prepare the buyer with comprehensive and detailed information on how to run the business. 
• Once this is done, step back and allow them to take charge. 
• Remain available for support and questions, but do not micromanage. 

Striking the right balance between support and independence is critical to a smooth transition and the business’s future success. 

“It’s best to take the stance of an accessible expert but not a helicopter parent.”

Sell Your Ecommerce Business with Quiet Light

Selling your ecommerce business doesn’t have to be daunting. With Quiet Light’s guidance, you can confidently navigate the complexities of the sales process. Our experienced Advisors are entrepreneurs who will stand by your side every step of the way.

Contact us today for a complimentary, no-strings-attached valuation and discover how we can assist you in achieving your goals.