What It Takes to Sell My eCommerce Business to Private Equity or Aggregators
Introduction: The Growing Demand for Online Brands
The eCommerce world has grown at an impressive pace. With more customers shopping online and digital brands gaining attention, many entrepreneurs ask, “How do I sell my eCommerce business?” Whether you're looking to move on to a new venture or cash out after years of effort, private equity firms and aggregators offer real opportunities—if you're prepared.
Understanding what these buyers look for is essential. Selling isn’t just about having a great product; it’s about having a well-structured, growing, and investable company. Private equity and eCommerce aggregators are looking for businesses they can scale—and they’re willing to pay for it if the fundamentals are solid.
Who Are the Buyers: Aggregators vs. eCommerce Private Equity
Before exploring what it takes to sell, it’s important to understand the difference between your two main types of buyers.
eCommerce Aggregators
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Specialized firms that acquire and operate multiple online brands.
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Focus on DTC (direct-to-consumer) or marketplace sellers (especially Amazon FBA).
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They standardize operations, marketing, and logistics across a portfolio.
eCommerce Private Equity
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Larger investment groups that typically buy controlling stakes in companies.
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They may hold a brand longer or partner with founders for further scaling.
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They look beyond just Amazon or Shopify stores, often investing in broader categories.
Each group has its own buying criteria, but some key traits attract both types.
Preparing the Business: Financial and Operational Readiness
To sell my eCommerce business, the first step is to make the company attractive to buyers.
Clean Financial Records
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Ensure all income, expenses, and taxes are documented clearly.
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Use professional accounting software.
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Prepare at least 24 months of profit and loss (P&L) statements.
Consistent Revenue and Growth
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Buyers want to see strong monthly recurring revenue or consistent year-over-year sales growth.
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Avoid sharp declines or big seasonal gaps unless they’re explainable.
Low Owner Dependency
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If the founder is central to daily operations, that can be a red flag.
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Document SOPs (standard operating procedures) and delegate tasks when possible.
Performance Metrics That Matter
Private equity firms and aggregators use specific metrics to evaluate whether a business is worth acquiring.
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EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): Shows the actual profitability of your business.
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SDE (Seller’s Discretionary Earnings): Often used by aggregators to determine valuation.
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Customer Lifetime Value (CLV) and Customer Acquisition Cost (CAC): Indicates how efficiently the brand acquires and retains buyers.
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Conversion Rate: The higher it is, the more efficient your sales funnel.
These numbers help potential investors assess the health and scalability of your business.
Building a Strong Brand and Market Position
Private equity firms and aggregators don’t just buy revenue—they buy potential. That means a strong brand story, customer base, and market niche are vital.
Brand Qualities That Appeal to Buyers:
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Unique product offerings with defensible positioning.
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Active and loyal customer base, shown through reviews and repeat purchases.
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Diversified traffic sources (not overly reliant on paid ads or a single platform).
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Trademark protection or proprietary products, when possible.
Brand strength increases both the appeal and the valuation.
Platform Diversification: A Plus Point
A business that depends only on one channel (like Amazon or Facebook ads) can be risky. Buyers prefer brands that have multiple revenue streams or customer touchpoints.
Examples of diversification include:
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Selling on both Amazon and your own Shopify store.
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Having an engaged email list or SMS subscriber base.
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Using organic SEO or influencer marketing alongside paid ads.
Being able to show multiple traffic and sales sources makes your business less vulnerable to platform changes or ad cost increases.
Timing the Exit
Knowing when to sell is just as important as knowing how. If the business is growing steadily and has stable systems, it’s likely in a good position to attract interest.
Signs that it's time to consider selling:
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You’ve optimized most processes and growth is steady.
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You no longer wish to manage daily operations.
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The market is seeing high valuations for businesses like yours.
Rushing the process or selling during a slump can reduce your business’s value significantly.
Working with Brokers or Going Direct
You can choose to sell your eCommerce business directly to buyers or work through a broker.
Direct Sale Pros:
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No broker fees (which can range from 8–12%)
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More control over the deal
Broker Pros:
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Access to a network of vetted buyers
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Help with valuation, negotiations, and legal processes
Either way, having a clear pitch, organized documents, and realistic expectations is key.
Legal and Technical Considerations
Don’t overlook the final steps in preparing to sell:
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Prepare a full business prospectus.
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Transfer trademarks, domains, supplier contracts, and ad accounts.
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Ensure your customer data is stored and shared legally.
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Work with a lawyer to draft or review the asset purchase agreement (APA).
This helps the buyer transition smoothly and protects you from post-sale issues.
Conclusion: A Smart Sale Starts with Smart Prep
If your goal is to sell my eCommerce business, the process requires planning, clarity, and understanding of what investors seek. Whether you’re targeting eCommerce private equity or aggregators, your best chance for a high-value sale lies in strong financials, scalable systems, and a well-positioned brand.
Being proactive about metrics, documentation, and strategy will not only attract more buyers—it will increase your business’s worth. With the right preparation, selling your eCommerce business can be the step that unlocks your next big opportunity.
