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The Ecomcrew Ecommerce Podcast

E559: Is It Better to Sell or Hold Onto Your E-Commerce Business in 2024?

Jul 15, 2024
35:49

Dave and I discuss the reasons why e-commerce valuations have significantly decreased this year, Mike's run at the World Series of Poker event, and the potential valuation of content websites. 

Today's episode is sponsored by Clearco, a company that provides ecommerce businesses with working capital to fund inventory, marketing, shipping and logistics, and more! Check them out today! 

It's been almost a year since I last sold off one of my e-commerce businesses. 

Since then, a lot has changed.

Amazon's new fees were implemented, interest rates have skyrocketed, and FBA Aggregators are few and far between. 

I invited Dave over today to discuss how Amazon may or may not have had a hand in directly affecting the valuations of e-commerce businesses, and why the market hasn't recovered from 2 years ago. Here are some of the big takeaways from this episode: 

The Big Takeaways
  • E-commerce valuations have decreased mainly due to the uncertainty caused by Amazon's fees and policies. Who knows when Amazon will come out with more fees that'll impact profitability? 
  • Google's latest algorithm update has hit a LOT of content websites, leading to decreased traffic for everyone involved which directly impact its valuations. 
  • If your e-commerce business is sold at a 2x multiple, it might not be enough for you to retire. Wouldn't it be better to hold onto your business instead? 
Timestamps
  • 00:00 - Introduction and Sponsor
  • 02:56 - Mike's Run at the World Series of Poker
  • 08:13 - E-commerce Valuations
  • 20:07 - Valuations for FBA Businesses
  • 21:06 - Valuations for Off-Amazon Brands
  • 22:01 - Uncertainty in Content Site Valuations
  • 28:14 - Decision to Hold onto a Profitable Business
  • 31:08 - Dave's Funny Story 
  • 34:21 - eBay's Attempt to Change

As always, if you have any questions or anything that you need help with, reach out to us at support@ecomcrew.com if you're interested. 

Don’t forget to leave us a review on iTunes if you enjoy our content. If you have any questions, send us an email at support@ecomcrew.com. We'd love to help you in any way we can. 

Thanks for listening!

Until next time, happy selling!

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