Drop shipping is one of the most lucrative businesses around us today. So if you can find an e-commerce drop shipping business for sale, you could enjoy some serious passive income.
The lucrative aspect of the business is the main reason why a number of people have a keen interest in a dropshipping business. And the reasons are not far-fetched.
The cost of running a drop shipping business is as minimal as can be. Those involved in this business does not have to house, handle, or keep inventory. They simply serve as middlemen between sellers, manufacturers, and buyers.
The not-so-expensive cost of setting up a website is another advantage. If you’re good with tech, this is usually easy. If not, hiring someone to do the job for you doesn’t cost that much. All in all, setting up your drop shipping business doesn’t involve as much as you would need when it comes to other businesses.
However, in this kind of business, not everyone is in it for the same thing. While some are trying to get in, others are moving on. This two-way movement is what leads to another aspect of the dropshipping business: buying and selling drop shipping businesses.
For some interested in the business, starting off from scratch is a lot of work. Choosing which domain name to use, the website layout and all is a lot of work for them. So they decide to buy existing eCommerce websites.
For some others, it’s about having had enough fun and moving on. There are a lot of reasons for this (which you will find out later in the article).
Whether you’re buying or selling, what’s there to know about eCommerce drop shipping business for sale?
E-commerce dropshipping business Sellers
As mentioned above, there are several reasons why some people decide to sell their eCommerce businesses. It may sound like the norm, but to some others, it’s not. The general concept is that if drop shipping is so lucrative, why would an individual or entrepreneur want to sell off their business?
And this kind of questions brings along with it its own skepticism. Just imagine seeing an ad promoting the sale of a ready-made dropshipping website. A million and one thoughts and questions will arise, including the thought that something is wrong with the eCommerce business.
And it won’t take too long before certain conclusions about the business will be made. If not presented well, those who see it will start thinking the business isn’t making any money.
Others may conclude that the sale of the website is to dump it in the hands of an unlucky and inexperienced buyer.
All these conclusions may sound wild. But the truth is, some of them may just be true. And potential buyers have every right to think these thoughts. However, it’s entirely up to you, the seller, to follow the necessary steps to quell every fears potential buyers may have.
Just so you know, there are several reasons a drop shipping business will be up for sale. Some of them are:
- Short term profit
A well-designed e-commerce website which ranks highly on Google search engine result pages and is well known in its niche can serve as a great source of income for its owner. The high amount of hits it gets means a higher likelihood that customers visit and also make orders.
Depending on its ranking, how it looks and all, an eCommerce drop shipping business can also command huge fees when put up for sale. Owners do this in a bid to get immediate profit.
- To fuel other ambitions
Sellers of e-commerce drop shipping businesses do so often times to raise resources for one undertaking or another. These undertakings/projects vary from person to person. But it’s another common reason why drop shipping businesses are sold.
- Time constraint
Inability to spend quality time with these businesses leads to them selling it off. E-commerce businesses are time-consuming. From uploading images to attending to orders, it is a lot of work. At some point in some business owners’ lives, ha doing it becomes impossible. Hence the need to sell it off. However many drop shipping business can be set to run automatically.
Get your fully automated business now.
Buying an e-commerce dropshipping business
As someone who wants to buy an eCommerce drop shipping business, what should you look out for? From the millions of options out there, how can you make the best decisions?
- Pros and Cons of buying an e-commerce drop shipping business
Before you set out to purchase an eCommerce drop shipping business, think deeply about it. What are the motivating factors behind your moves?
Are you buying the existing business just because you want to by-pass the stressful process of setting it up from the very beginning?
Remember, the process of building your business teaches you a lot. But it’s time-consuming and energy sapping. If you’ll be buying a business, then it has to be to eliminate these factors.
Purchasing an eCommerce business makes more sense if you’re targeting a business that performed well in recent times.
You should be working towards the purchase of a business that has already been making profits and functions smoothly.
That’s not all.
You should consider the fact that you may not be able to customize the eCommerce business before purchase. This means you’ll have to accept the majority of what is existing, including the design, layout, products and all.
When it comes to drop shipping business, several entrepreneurs serve different purposes. The wants of humans are vast and never-ending. It’s the reason why several businesses focus on different products/niches.
Furthermore, niches play a vital role in deciding which drop shipping business to purchase.
Truth is, no matter how well built a website is, the niche it focuses on remains the most important. This determines the type of visitors it gets, the keywords it ranks for on search engines, among other things.
To an extent, it also determines the profitability of the business. If the demand of a particular niche is high, the more likely it won’t go out of fashion and run out of customers any time soon.
Understanding the SEO potential of a certain website gives you a general overview of the level of competition.
Knowing some basic SEO gives you an idea of the work to be done and how to either grow or improve people’s interest levels in specific drop shipping products.
- Seller’s attitude
You should be on the lookout for the telltale signs from a private the seller’s behavior. A seller that’s in a hurry to do away with an eCommerce drop shipping business may have ulterior motives.
A seller that answers all your questions helps you to clarify issues and is patient with you throughout the process is one to do business with.
Unanswered questions, holding back on vital information are red flags of a not so trustworthy business seller.
Don’t be pressured into buying from the first seller you find. Take your time to compare and contrast between options.
- How much to pay for a dropshipping business?
The asking price is another point that speaks volumes.
Is the asking price realistic enough? It may be hard to evaluate.
7 things to consider when pricing an established website.
- Profit – How much profit does the drop shipping business make per month. Remember that profit is what’s left after all business expenses.
- Business expenses – How much is the monthly operational cost of the drop shipping business? You may have enough money to purchase the business. However, do you have enough money for all business expenses including those unforeseen dropshipping expenses?
- Traffic – What the amount of monthly visitors to the site. Premade or starter site will have little to no traffic often because no marketing has been done. However, if buying an established site traffic is important. More important is the amount of visitors who convert into buyers.
- Time investment – How many hours a week is need to operate this business? Why buy a online business that profitable if you don’t have the time to invest into growing it.
- Marketing – How is this business marketed? And consider if you can improve on this. Consider finding other marketing opportunities to grow your new dropshipping business.
- Competition – How hard is it to compete in this niche.
- Future projections – Is this dropshipping niche trending up or down. Never buy a business with a rapid downward trend. Visit google trends to see which niches are trending.
You should also compare the cost of setting up a website from the scratch and the cost of purchasing one. Which one makes more economic sense?
Where to buy an eCommerce drop shipping business?
There are several platforms to purchase dropshipping businesses. However many people reading these articles are new to dropshipping and looking for additional income.
So it wouldn’t make sense for me to list platforms where the minimum price of a drop shipping business is 10k and up.
So I’m going to share with you what I do and what’s been working for myself and my clients.
Dropshiprocket.com, offers premade and custom made dropshipping businesses. They also have established drop shipping business for sale.
Dropship Rocket has a kick ass business model. There goal is to work with new clients who purchase there businesses.
There goal is to get there clients new stores profitable as soon as possible. When the store becomes profitable Dropship Rocket will assist their clients in the sale of there drop shipping business for a massive profit.
I have currently sold 3 business with Dropship Rocket. These where premade business that I purchased from them in a 3 package deal for $699.
Meaning each business was $233.
With the help of Dropship Rocket, I grew each business to over $1000 in profits in just under eight months.
Dropship Rocket then found a buyer for my websites and handled all the documents and everything that comes with the transfer of a business to a new owner.
And if you curious as to what I sold the businesses for here it is. I signed a known disclosure agreement so I can’t reveal any site domains or exact purchase price.
But I can tell you that a profitable drop shipping business can sell anywhere between 18 times to 36 times the net monthly income.
Two stores sold out right for over the 18k mark. And one store sold for over 10k with a earn out agreement at a agreed amount.
So it honestly in Dropship Rocket benefit to assist all there clients and help them become successful since they do broker the sale of your store.
How would you like a proven plan and someone there to guide you in your new business. That what Dropship Rocket does.
To be honest I did find my original rep a bit pushy repeatedly contacting me on reasons why I should sell my business earlier than I wanted to.
Honestly, my goal was to follow there plan and sale the business all along, but I made it clear that I would do it on my terms and when I am ready. I asked for a new rep and got Andrew who was amazing none pushy and very informative.
If you do purchase a dropshipping store allow Dropship Rocket to assist you but remember it is your business not there’s and don’t be forced into selling it if your not ready or don’t want to.
Dropship Rocket Review
Dropship Rocket is a website that is renowned for being a digital marketplace created to buy and sell online businesses.
They do a great job of assisting clients who are active and welling to grow there businesses.
As mentioned above, a dropshipping business has a lot of benefits. It is a business that comes highly recommended.
But you have to learn the ropes before you dive into the deep end. And this article has expressly revealed to you some of the things you need to know.
Buying a eCommerce drop shipping business has its pros and cons. Moreover, there are different strokes for different folks. You cannot judge your business wants based on what applies (or doesn’t apply) to another business.
You have to find out what works for you. And this post is a perfect starting point for you.
Be sure to read through again and digest the necessary points. Make sure you’re ready before you start spending your hard-earned cash.
When you feel you’re ready, use this as your guide. And of course, don’t forget to share this with your friends. They will thank you for it.
Oh and get on over to dropshiprocket.com they have an active chat where you can contact a rep anytime if the day.