Valuing an Ecommerce Business for Sale

Ecommerce businesses are hot commodities. Aggregators (like Thrasio), private equity, and individual buyers are looking for established stores. But how much is your store actually worth?

The Valuation Multiple: SDE

Small ecommerce businesses (under $5m revenue) are typically valued on Seller's Discretionary Earnings (SDE). This is effectively your Net Profit + Owner's Salary + One-off expenses.

A typical store sells for 2.5x to 3.5x its annual SDE.
Example: If your SDE is $100,000, your business might sell for $250,000 - $350,000 (plus the value of stock on hand).

Key Value Drivers

To get a higher multiple (4x+), you need:

• Owned Audience: An email list (Klaviyo) is worth far more than rented traffic (Facebook Ads). Buyers love businesses that don't rely 100% on paid ads.
• Age of Pixel: A mature Facebook Pixel/Ad account with years of data is a valuable asset.
• Supplier Contracts: Exclusive rights to a product or branded goods (Private Label) are worth more than generic dropshipping stores.
• SOPs: Standard Operating Procedures. If the business runs without you, it is worth more.