As technology and convenience have made online shopping easier than ever before, now is an excellent time to buy or sell an e‑commerce business. This includes strong opportunities for online shopping businesses in product categories such as groceries, appliances and clothing, where physical stores were previously the norm – but now consumers are enjoying efficient, socially-distanced online purchasing and shipping capabilities.
Following years of steady growth, over the next 5 years, the e‑commerce industry is expected to continue these growth trends, including:
- Revenue increasing at an annualized rate of 9.0%, reaching $993.2 billion in 2026
- Industry value added (IVA, or the industry’s contribution to the US economy) increasing at an annualized rate of 10.2%
- Number of enterprises in the industry increasing at an annualized rate of 11.4% (including a large number of small and independent players)
At BayState Business Brokers, we’re selling more e-commerce businesses than ever before as growth trends continue. However, with all the variables and competition involved in e‑commerce – including product and customer location(s), shipping costs and schedules, websites, marketing, staffing and more – it can become challenging to navigate buying or selling a business in this industry.
We have years of experience leading the sales process for different types of e‑commerce businesses, including the following:
- Third-party logistics (3PL) businesses that ship products from warehouses: For example, recently we sold Sprocket Express LLC, a 3PL business that stores, sells and ships products from a fulfillment and distribution center at its 40,000-square-foot warehouse in Plainville, MA. The company was sold to an industry buyer from California who was able to improve shipping speed throughout the United States by gaining a presence on the East Coast, in addition to their original West Coast location. Read more here about how BayState successfully sold this company.
- Online stores selling products via their own website and through Amazon, Etsy or other websites: BayState recently sold LCI Paper Company, a distributor of specialty paper to wedding event planners, restaurants, religious institutions and consumers. When selling this company, important factors to understand included shipping and warehouse logistics, online sales metrics, and inventory management and valuation. Brokering the sale during the COVID-19 pandemic was challenging, but BayState was able to find a buyer with a passion for the industry. The buyer was excited to take the company to the next level.
- Physical stores with e‑commerce components: BayState has sold several retail businesses with strong online sales components. We have also brokered the sale of websites, one which supported the local grocery chain Market Basket. During all these sales, we gained a deeper understanding of important considerations when running an online store and website company.
BayState Business Brokers: Your Source to Buy or Sell an E‑Commerce Business
For each unique e‑commerce business, we work on finding and reaching out to a variety of buyers – from individuals to strategic buyers and private equity groups – all with connections to the e‑commerce industry. Our proven approach and processes provide our clients with the best possible price, terms and overall offers when selling their businesses.
If you have an e‑commerce business you’d like to sell, or if you’re interested in purchasing a business in the growing e-commerce market, contact us. We have a team of brokers with e‑commerce expertise ready to match sellers with the right qualified buyers, enabling both parties to seamlessly reach their goals.
