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E-Commerce Business Valuation Formula: |
| Valuing E-Commerce Businesses: This is a general small business valuation formula or pricing method for established E-commerce businesses based on a percentage of annual gross revenues that can be used to help determine an approximate value and asking price to market an e-commerce web site business for sale. |
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E-Commerce (retail): Approximately 50% of annual gross sales + inventory |
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Broker Comments: Even though at the end of the day e-commerce businesses are retail businesses, they tend to support appreciably higher valuations and asking prices than the average brick and mortar retail store for a number of reasons. This includes they generally are more profitable, they have much lower overhead, (most small ones are home based and have no employees), they are portable and can easily be relocated, the world is their market, and they can generally offer the owner operator a very attractive lifestyle and more freedom. |
| Need a business valuation or appraisal for legal, personal, or selling purposes? Request a free & confidential preliminary business valuation consultation about your established hair salon business. |
