Where to Sell Your Shopify Store Now That The Shopify Exchange Marketplace Has Been Terminated

If you are a Shopify store owner who planned to sell your business on the Shopify Exchange marketplace, Shopify’s decision to shutter the marketplace probably came as an unpleasant surprise. Suddenly, a viable path for selling your company was gone. Fortunately, there are a number of alternative ways you can go about achieving a successful and profitable exit. 

In this article, we discuss:

• Why the Shopify Exchange marketplace was terminated
• Where you should sell your Shopify store instead

Related Articles: The Definitive Guide to Selling Your Shopify Store

Why the Shopify Exchange Marketplace Was Terminated

First, we’ll take a look at what the Shopify Exchange marketplace was, and why it was terminated in the first place. 

What was the Shopify Exchange marketplace?

Shopify is an industry-leading ecommerce service provider boasting 2.1 million daily users. It provides entrepreneurs with the tools that they need to start and run their own successful online stores. Shopify has helped launch numerous successful online businesses. 

Many of these entrepreneurs build a business with the end goal of selling itdown the road. There are a number of different ways to go about selling your Shopify store, which we’ll explore in detail below.

Given its large user base, Shopify felt that providing a marketplace for the selling or purchasing of Shopify stores would be a natural fit. As a result, Shopify launched the Exchange marketplace app in 2017. It was a place where Shopify store owners could list their business for sale, meet interested buyers, and complete the transaction. Shopify promised to streamline the selling process. This was possible since Shopify already possessed the relevant business records and accounting metrics. 

“Shopify’s core focus is providing their customers with the tools they need to start, build, and scale successful ecommerce businesses.”

Why Shopify terminated the Exchange marketplace

Shopify terminated the Exchange marketplace on November 1, 2022. According to Shopify’s official statement, “Shopify’s top priority is doing what is in the best interest of our merchants. After November 1, 2022, we are recommending merchants use other marketplaces for buying or selling their commerce brands.”

Clearly, Shopify felt their customers would be better off selling their businesses elsewhere. After all, Shopify’s core focus is providing their customers with the tools they need to start, build, and scale successful ecommerce businesses. The Exchange marketplace was simply an add-on to their core activities. 

There are claims that the Exchange marketplace app attracted misvalued businesses. Others say there were listings that had high volatility or misleading profit figures. According to these claims, business owners took advantage of the marketplace to mislead ignorant buyers into making bad deals. The degree to which this claim is true is difficult to determine, unfortunately. 

“Fortunately, there are a number of different ways you can go about creating a successful exit outside of Shopify Exchange.”

Where Should You Sell Your Shopify Store Now That the Shopify Exchange Marketplace Has Been Terminated?

Now that the Shopify Exchange marketplace is shut down, you may be wondering where you should sell your Shopify store. Fortunately, there are a number of different ways you can go about creating a successful exit outside of Shopify Exchange.

Selling through your own network

Many entrepreneurs utilize their own networks to find qualified buyers. While this may not work every time, it is a great place to start. 

A benefit of selling to someone in your network is that you already know them. The rapport is there, as is trust and confidence. In addition, you will have a better idea of knowing whether they are truly qualified to purchase and run your business successfully. 

If you choose to not work with an Advisor, it may be quite hard for you to determine the true value of your business before listing it. This could lead you to drastically undervalue it and leave easy money on the table. 

In addition, selling to your network may mean that you receive fewer offers. This reduces competition and may lower the sales price. Depending on the size of your network, it can also be hard to find the right buyer. For these reasons, you may want to consider opening up the buying pool by listing your business publicly. 

Selling on public platforms

There are a number of public platforms on which you can advertise your business. It is usually as simple as creating a listing and fill out all relevant information. This can help you dramatically increase the number of potential buyers you reach. 

This can lead to greater interest and more competition for your business. In the long run, more buying competition translates into a higher sales price and better deal terms for you as the seller.

Not all interested buyers you attract will be qualified, however. It is important to separate the wheat from the chaff. Be discerning throughout the process in order to choose a buyer you feel comfortable working with. Selling and buying a business can be a stressful experience. It is only made more challenging by having a difficult buyer. 

Like selling to your network, it can be hard to determine the true value of your business if you decide to sell it on your own on a public platform. 

Working with a broker to sell your Shopify store

Many entrepreneurs choose to work with a qualified business broker, or Advisor, when selling their Shopify store. An experienced Advisor brings several crucial benefits to an otherwise challenging situation.

A significant portion of the financial value you derive from your business comes when you sell it. Given its financial weight, it makes sense to maximize your exit as much as possible. Hiring an Advisor does entail a commission fee, but the increased price and value that an Advisor can help you achieve should more than make up for their fee. 

The right Advisor will help you in several ways. These include:

• Preparing your business for sale
• Gaining access to more qualified buyers
• Navigating the exit process
• Obtaining a higher sales price
• Winning better deal terms

“Many entrepreneurs choose to work with a qualified business broker, or Advisor, when selling their Shopify store.”

Prepare your business for sale

Properly preparing your ecommerce store for sale is absolutely crucial for creating a successful exit. Your Advisor has been through the selling process many times. As a result, they will know exactly what you should do to prepare your business for the market. 

This could include:

• Implementing effective growth strategies
• Cleaning up your documentation
• Identifying and mitigating areas of risk

The changes you make ahead of time will pay large dividends when it comes to attracting higher offers.

Gain access to more qualified buyers

As in many circumstances in business, connections matter during the selling process. Your Advisor can utilize their large network of investors and entrepreneurs to find truly qualified buyers for your business. The more interest and competition your business attracts, the better you will be able to negotiate a higher sales price and better deal terms. 

Navigate the exit process

Once you receive an offer you want to accept, your Advisor will help you negotiate specific deal terms with the buyer. Even after terms have been negotiated, there are a number of steps to navigate during the exit process, including due diligence, drafting and signing the APA (asset purchase agreement), and closing the deal. 

Each step brings with it its own complexities and nuances. Many entrepreneurs find it helpful to work with a broker in order to ensure they leave no stone unturned when completing the transaction.

Achieve a higher sales price

By preparing your business for sale ahead of time, attracting a larger pool of qualified buyers, and approaching the exit process in a professional manner, your Advisor can help you achieve a higher sales price than you would have otherwise. More competition creates a more favorable negotiating position for you, allowing you to reject less competitive offers.

Win better deal terms

A successful exit involves more than just the final sales price. The deal terms and payment details also play a large role in the overall success of the transaction. Would you prefer an all-cash offer paid at the time of closing, or are you open to receiving payment over the course of several years? Do you want to stay involved in business operations or do you prefer a clean break?

By attracting competition and putting yourself in a stronger negotiating position, you have more say over the final deal terms you accept. 

Conclusion

After five years in operation, Shopify decided to shut down its Exchange marketplace app as of November 1, 2022. The decision was made in order to allow Shopify to focus on what it does best: Providing entrepreneurs with the tools they need to build, grow, and scale successful online businesses. 

While many entrepreneurs may have been dismayed at the decision, there are a number of alternative ways to successfully sell your Shopify store. Selling it through your own network or listing it on public business-listing sites can be an excellent way to get started. 

However, many entrepreneurs find it helpful to work with a business broker when selling their Shopify store. By helping you prepare your business for sale, attracting more qualified buyers, and navigating the exit process by your side, your Advisor can help you achieve a higher sales price and win more favorable deal terms than you would have otherwise. This, in turn, can set you up for long-term financial and personal success in your post-sale life.