Meet the three-person team behind a global giftware company
It’s magical to connect with the people behind a product. I received a planter with a dinosaur-shaped design last year. Its quirky design caught my attention immediately and I wanted to learn more about the creators.
It was made by Bitten Design. I found it fascinating and began to browse its website, lusting after other items that I thought would fit into my home. Later, on my travels, I came across Bitten Design’s products in shops all over the globe and saw firsthand its global reach.
I visited Bitten Design’s Utrecht office during a late 2019 trip to the Netherlands to talk with Al Cuttell and Diana Paisis, two of its founders. They explained how they got the design bug and how it came to be.
Listen to Bitten Design’s story in this episode of Shopify Master.
Step-By-Step Guide on How to Buy a Business On Exchange
Buying a website can be likened to investing in real estate online.
Shopify is home to hundreds of thousands of ecommerce shops, including those that are new entrepreneurs, veterans, and established businesses.
The Exchange offers over 10,000 ecommerce shops for sale, more than any other online marketplace. This allows you to skip the building phase and jump right into running your business.
How do you buy a business?
Shopify’s marketplace Exchange allows you to buy and sell ecommerce businesses that have been created by Shopify merchants.
Merchants can sell their online shops through the Exchange app. It pulls data from Shopify such as traffic, revenue, and other information. Sellers cannot edit their store data so interested buyers can feel confident knowing they will get what they see.
The range of stores on Exchange includes ready-to-go starter shops to established ecommerce businesses.
Prices can also vary. While starting stores may cost $50, established six-figure ecommerce businesses can sell for more than $1 million.
Benefits of purchasing a business instead of starting one from scratch
1. Avoid procrastination
You’re less likely procrastinate if you purchase an online business rather than creating it. You don’t have to worry about setting up a store.
You’ve shown yourself that you are committed to making this online business a success, regardless of whether you have invested $50k or $1m on Shopify’s Exchange. You will be motivated to make your first sale as soon as possible by the additional financial reward.
2. You can start selling as soon as you wake up
You can skip the business setup phase completely and get right into marketing by buying a business. Once your store has created products, you can begin selling as soon as you have account access.
You’ll be one step closer to your first sale by getting into marketing. You would spend some time designing the website if you learned how to create a website by yourself. You gain an advantage over your competitors by purchasing a business.
3. A professional website
Shopify Exchange stores may be built by entrepreneurs, but there are many professional shops designed by Shopify Experts. You might consider buying an online store that is Shopify-ready by experts who are skilled in designing websites. These experts can build stores for as low as $50
How to purchase a business on Exchange
Exchange houses stores from all sizes and all industries. Dropshipping, print on demand, established and high-growth shops are all available in Exchange.
These stores can be marketed and built, but have not sold more than $100. Traffic and revenue data will not appear for them. These stores are often sold for less than the full value of the product and the possibility that you can unlock it with marketing.
You should ask yourself these questions before you start browsing Exchange to find a store to purchase.
- What are your website’s revenue goals?
- What amount of money would you be willing to invest in order to reach your goals?
- What amount of time do you have to spare?
- Do you need it to be maintained or do you need to market it?
- Is there a way you can add value to the site?
These questions can be discussed further with the seller during the exchange.
1. Do your research
The listing will include a description of the store and information about traffic and revenue during the last year. You can also request a price by contacting the seller through the contact form. Sellers will often list the reason they are selling the store. This is usually due to lack of time or life-changing events.
You will also see what the seller is willing and able to offer you in exchange for the asking price.
- Physical inventory
- List of suppliers
- Email list
- Branding assets and logo
- Social media accounts
- After-sales support
- Photos of the product
- You can also negotiate any other terms with the seller to add to the final deal
Exchange allows sellers and buyers to communicate directly with each other using anonymous email. This is a great way for them to share additional information about their store or sale.
Remember that sellers may stop actively marketing their store when it is up for sale. This could lead to a drop in traffic or revenue.
Exchange can’t verify profit margins so you need to ensure you:
- Examine and comprehend all traffic sources. You should know where the traffic comes from, and if you can duplicate it after you purchase the store.
- Confirm financial information.This includes costs (inventory, marketing) for the store. You should know what the store is spending to get the results they want.
- Check their social media accounts. To ensure that their followers are genuine, look at the engagement rate. Do not take a large number of followers as gospel.
- Find out exactly what is included. If possible, try to obtain all the relevant inventory, social media, and email lists. It’s important to have it included in the deal if it’s essential for the operation of the store.
- You need to understand why they are selling the site.It’s possible that you won’t get the reason, but it is still worth asking.
- It is possible to see it yourself. Screen-sharing is possible. You can also obtain “view only” access to your account for verifications (traffic sales, ad spending, etc.). Talk to the seller.
After you have vetted the shop, you can make an offering on it. The seller will then respond.
After you have reached an agreement, it is time to pay the seller. The seller will initiate a transaction after your offer has been accepted.
2. 2. Initiate the transaction
To ensure trust and safety, the Exchange Marketplace has partnered up with Escrow.com
If you don’t know what escrow is, it’s a way of paying money that protects the money from a third party (in this instance, Escrow.com), until both the buyer or the seller agree to the terms of the deal.
To initiate an Escrow.com transaction, a seller must agree to terms (e.g., what is included in the sale, whether they will offer any support to the buyer, and how long the buyer has to inspect the shop after the exchange). An escrow period. Escrow.com is initiated by the seller.
The buyer pays Escrow.com the agreed price. Escrow.com acts like an intermediary, and holds on to the buyer’s funds until both the buyer and seller tell Escrow.com they are 100% satisfied with the transaction and that everything has been transferred to the buyer. Escrow.com then transfers the seller’s money.
Refer to our FAQs to learn more about how to conduct a secure transaction.
3. Transfer ownership
Exchange usually processes the transfer within three business days. After that, Exchange prepares the store for you to become the new owner.
Make a list of everything in the deal. This will help you both to make the transfer easier.
Exchange support can be reached if you have any questions regarding domain names, social media accounts, or any other matters. These matters are also covered by Escrow.com, which offers great support.
Before the agreed-upon escrow period expires, you should:
- For responsiveness and quality, check out the suppliers.
- Change all passwords to accounts that you have access to, and remove the access of the original seller.
- You should take advantage of the support offered by the seller to learn how to duplicate their results. Ask all questions you can while you’re at it.
After the escrow period has ended and the exchange has been completed, you will be the new owner and can take the store in any direction that you choose.
How to choose the right business
Shopify’s Exchange helps you choose the right business by categorizing its stores.
Shopify’s Exchange has Dropshipping Businesses for Sale. If you prefer dropshipping apps, you can also sort by Oberlo shops. Dropshipping is one of the most sought-after business models right now. Dropshipping is a way to sell products to customers without having to keep inventory. Dropshipping is an easy business model for beginners. There are many starter shops that offer dropshipping.
Entrepreneurs may prefer to create a unique brand and exclusive products. Perhaps you have always wanted to purchase a business with a unique brand but lack the design skills. You can purchase print on-demand businesses with exclusive designs that you can sell.
3. Retail businesses
4. 4. Established businesses
You can find established businesses for purchase if you are an experienced entrepreneur. This category has many successful businesses that are active on social media, have email lists, or other marketing perks that will help you take your business to the next level.
Exchange allows you to search for businesses that are available in many countries. Some businesses are based in other countries. Others operate internationally.
6. Exchange-sold stores
You might be unsure which store to buy if you have looked around. You’ll find information about the types of stores that people buy and what their prices are. There are also design ideas that you can use to create your store.
Ecommerce Exchange: Sell or buy an ecommerce company
Exchange is a marketplace for Shopify stores. It’s available to both those looking to invest in a fully functioning company or those who want to save time searching for an online idea.
Undergroundship.com is the one of the projects of ConnectPOS who shapes the future of 2000+ clients worldwide in an omnichannel journey with a leading Retail POS system.
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