Buy a Shopify Store: All You Need to Know Guide

There are two main ways to start an online business with Shopify: build a new store or buy an existing Shopify store.

Buying a Shopify store can help you grow faster with less work. But is it worth it? Does the appeal of a ready-made business match the cost?

In this blog post, we'll help you find the answer. We'll explore how to buy a Shopify store and proven tips for a successful purchase. You'll learn everything you need to find the right store and do the necessary research to make a smart investment that will grow your wealth.

Why Should You Buy a Shopify Store?

You might be asking, why buy a Shopify store when you can create one from scratch for free? Here are some good reasons.

• Quick entry into online business: Buying a Shopify store lets you dive into online business fast. You can avoid the long process of starting from scratch and start selling products immediately.
• Established brand and reputation: An existing Shopify store already has a well-known brand and reputation. It would save you a lot of time and effort to build customer trust.
• Existing relationships with customers and suppliers: When you buy a Shopify store, you own its customer and supplier connections. You can maintain relationships with loyal customers and suppliers without starting over.
• Immediate income potential:  Because the Shopify store is already running, you can earn income immediately. It lowers the financial risk of starting a new business and speeds up your return on investment.

However, buying an online business can also be tricky. Let’s review the considerations before deciding whether to buy a Shopify store.

Considerations Before Buying a Shopify Store

Before you buy a Shopify store, think about these critical factors:

1. Define Your Goals

Making a decision depends a lot on your business goal. Think of these questions and give your own proper answer beforehand.

• Growth vs. Startup: Decide if you want an established store with existing customers and a proven success record to grow further or a new store with a niche product where you can build your brand and customers from scratch.
• Long-Term Vision: Think about the kind of e-commerce business you want in 3-5 years. Does the store you're looking at fit with your future plans?
• Expertise and Interest: Reflect on your own skills and interests. Does the store's industry or product type match your knowledge and passion? Are you ready to learn new things to manage the store well?

2. Budget considerations

When planning your budget, consider all these ongoing fees and save money for unexpected expenses. Be realistic about how much money you will need to invest.

• Purchase Price: The initial price is just the start. Include other upfront costs like buying inventory (if needed), transferring the domain name, and buying necessary apps or themes.

• Recurring Costs: Don’t forget the monthly Shopify fees, which range from $19 to $299, depending on the plan. Also, account for transaction fees of 2-2.9% per sale. Include marketing costs like advertising and social media management.

• Hidden Expenses: Be prepared for unexpected costs such as fixing technical problems, making design changes, or keeping up with new rules and regulations.

3. Analyze Market Trends

It's also essential to ensure the store is in a market with potential for the future; otherwise, you’ll face many unnecessary challenges.

• Is the store in an industry that is growing or shrinking? 
• Are there any new trends or changes in what customers want that could affect the store's success?
• How crowded is the market?
• What are the strengths and weaknesses of the store's competitors?

To answer these, research more on market reports and industry trends to understand its future potential. For example, a move towards eco-friendly products or a drop in demand for a specific type of product can be seen through current data and figures. 

Also, look at the competition in the market and evaluate whether you can enter it without fear of losing customers to competitors.

4. Understand Legal and Contractual Obligations

Legal problems are also important to notice. Look over all legal documents carefully. This will help you understand what financial and legal responsibilities you’re taking on.

Check all legal documents, such as purchase agreements, non-disclosure agreements (NDAs), and current contracts with suppliers or vendors.

• Are there any unpaid debts related to the store? 
• Will you be responsible for any ongoing legal or financial duties?

Lastly, ensure the store has the right to use its branding, logos, and product descriptions.

5. Consider Operational Requirements

The buying step is just the beginning of your journey to build a successful Shopify store; you will need a lot more effort to operate it in the long run:

• Store Complexity: Look at the technical side of running the store. Is it on a simple platform, or does it use complicated custom code that requires specific development skills?
• Inventory Management: Does the store need you to manage physical inventory? Think about the logistics of warehousing, shipping, and handling returns.
• Time Commitment: Be realistic about the time needed to run the store, including managing orders, customer service, marketing, and website maintenance.

By carefully considering these points, you'll be better prepared to decide about buying a Shopify store. Remember, buying a business is a big investment, so take your time, research, and don't hesitate to get advice from an accountant or e-commerce consultant.

After considering all these factors, if you find yourself still undecided between starting a Shopify store from scratch or buying an existing one, our recommendation is to try it out first. With Shopify's offer of only $1 for the first month on any plans, it’s a great opportunity to experience Shopify from A-Z before making a decision.

4+ Steps to Buy a Shopify Store

Now, if you’re ready for this journey, we will provide you with 4 essential steps to buy a Shopify Store successfully.

Step 1: Decide What Niche Fits You

As we mentioned in the earlier considerations, the first step is to decide what kind of Shopify store you want to buy and how much money and time you can dedicate to it.

Are you interested in buying a trendy clothing store, a successful electronics shop, or a profitable dropshipping business? Getting to know your preferences would help you narrow down your search and find a store that matches your interests.

This is also a good time to think about the types of products you feel comfortable selling and any expertise or ethical considerations you have. It might be eco-friendly goods or skilled in handmade crafts, anything that can fit you and your ability. Having a clear idea of the products you prefer will help you identify suitable opportunities when looking for a Shopify store to purchase.

Step 2: Find Places to Buy a Shopify Store

1. Find Shopify Store Brokerage Services

Once you've figured out your budget, how much time you have, and the type of Shopify store you want to buy, it's time to start researching.

Research is really important when you're looking into potential Shopify stores to buy. It helps you make smart decisions and avoid unwanted surprises later on. One of the safest and easiest ways to find a Shopify store to buy is to use a brokerage service that specializes in buying and selling websites, some of the popular ones could be named as follows:

• Empire Flippers
• Flippa
• Acquire
• FE International
• BizBuySell
• Website Closers

These services work like matchmakers, connecting people who want to buy online stores with those who want to sell them. These platforms give you many opportunities to browse and filter stores for sale based on your desire.

2. Make a List of Stores you Like

Once you've made a list of stores that catch your eye, it's time to get to work. Look carefully at the information provided for each store to see if it's a safe investment. Make sure the information has been checked by trustworthy sources.

Using a reputable broker can really help here. They can give you confidence that the information you're getting is reliable, so you won't have any difficulties after you buy.

3. Check out Carefully

Get as much information as you can about the person selling the store. See if they're open and honest about why they're selling:

• Do they share information openly?
• Have they run successful businesses before?
• What qualifications do they have to sell a store?

Ask lots of questions and have conversations to ensure that you're dealing with a trustworthy person who really wants to sell.

If you feel good about the seller and the store looks like it could make money, dig deeper into the details. Look closely at things like how much money the store makes, its profits, how many customers keep coming back, and how much it could grow in the future. Doing this thorough research will help you see how much the store is really worth and make a smart decision.

Remember, buying a Shopify store is like being a detective. Take your time, gather all the facts, and let the information guide you to the best options.

Step 3: Check Everything Before Buying

When buying from a Shopify store, it's important to do deep research.

This means thoroughly checking out the store to make sure you understand everything about it. Here's how to look at the store you want to buy:

1. Check where the website traffic comes from

First, find out how people find and visit the website. Is it mostly from paid ads or people searching online?

Evaluate how valuable the traffic is and get clear details about how much they spend on ads and how they do it. You would want to know if their marketing strategies work well and will it keep working.

To check their claims about organic traffic, use tools like Google Analytics and Shopify's reports. These tools show you who visits the site, where they come from, and what they do there.

It's also important to look at the links to the store from other websites (blacklink), which you can check with tools like Ahrefs or Semrush. This helps you see if people trust the store and if the links are good quality.

Generally, a Shopify store that gets traffic from more than one place is better. For example, if a store only gets visitors from ads on a platform like Meta, changes to Meta's rules could mean fewer visitors.

But if a store gets visitors from different places, like search engines, ads, and social media, it's more stable. Even if one way of getting visitors stops working, there are other ways to get them. So, think about how many ways the store gets visitors, how good those ways are, and how much work it would take to keep getting visitors.

2. Check the store’s financial performance and expenses

Understanding the finances of the Shopify store is crucial. Look closely at the numbers and see how much they spend on things and other costs. Make sure the financial information matches what they say about how much money the store makes.

When you're buying a Shopify store, pay special attention to these things:

• Revenue and Profit: Look at how much money the store has made and how much profit it's earned over a long time, like the past year or more. Check if the business consistently makes money and if it's growing. See where the money comes from, like sales of products, subscriptions, or other ways they make money, to understand how steady it is and if it could grow.

• Expenses: Check how much money the store spends on things like inventory, advertising, software they use, staff they hire, and other costs of running the business. Make sure these costs are reasonable and make sense for the industry. Look for ways they could save money or do things better.
• Financial Statements: Ask to see the store's financial reports, such as the P&L (profit and loss statements) and balance sheet. Look at these documents carefully to ensure they're accurate and consistent. Look for any big changes or unusual things that need more investigation.
• Payment Processors and Sales Data: Double-check the store's income by looking at reports from the companies that handle its payments. Make sure everything matches up, is clear, and is correct.

We know it can be a lot of work to go through all this financial information, but it's really important to make sure you're not being tricked. Remember, people can say anything, so do everything you can to check that what the seller says about the store's money is true.

3. Check the store’s assets

After reviewing the store’s finances, it’s time to look at the business assets that come with the sale. You need to confirm exactly what is being transferred, knowing what assets you’ll get in the deal is crucial for making a smart choice.

Pay close attention to these points:

• Inventory: If the store sells physical items, check how they manage inventory and handle eCommerce warehousing. Find out the value of the current inventory and how quickly they sell it. Make sure their inventory tracking is accurate to avoid mistakes or running out of stock.
• Marketing Assets: Look at the marketing tools they use, such as social media accounts (with real, active followers), email lists (check their size and how many people open emails), relationships with influencers, content they’ve made (like blog posts or photos), and brand materials (like logos or trademarks).
• Customer Data and Retention: Ask to see information about their customers, like how many they have, what it costs to get new ones, and how often they come back. Check their customer management system to see how they use information about customers to sell more things.

You want to ensure that the store’s assets are as valuable as they seem, that they follow all the rules, and that they help the business grow.

4. Check out the seller & suppliers

This is so important that it’s worth repeating.

Firstly, ensure the person selling the store is trustworthy and has a good reputation. Ask to see behind-the-scenes information like screen shares and read-only access to analytics and apps. It helps you understand how the store runs. 

Talk to the seller about support after the sale. Find out if they will help you during the transition, like answering questions, giving training, or helping with technical issues. This support is valuable as it can help you manage your new store smoothly.

Secondly, talking to the store’s suppliers is also essential; it can give you insight into the seller’s trustworthiness and help you build a good relationship with the suppliers. Let the suppliers know about the ownership change. Talk to them to understand their expectations and agreements with the store. 

Discuss prices and terms to make sure they are fair and good for the business. If the terms are not good, think about finding other suppliers. Check their reliability, product quality, delivery times, and customer service.

Step 4: Start the Buying Process

Congratulations! After researching and carefully checking, you’ve decided to buy a Shopify store. Now, let’s go over the following steps to finalize the purchase.

1. Get Professional Help

If the store is inexpensive, you might skip this. But for pricier stores, it’s smart to involve financial and legal experts.

• Financial Experts: Accountants or financial advisors can review the store’s financial records, ensure the data is accurate, and check the business’s profits and economic health. They can find any issues that might need more investigation and help you fully understand the store's finances.
• Legal Experts: Business lawyers can find any legal risks with the purchase. They can check out contracts and legal documents to ensure no hidden problems. They can also help with the transaction details and negotiate the purchase terms to protect you.

These experts provide specialized knowledge and an unbiased view. They can advise on risk management, negotiate with the seller, and ensure the transaction follows legal rules.

Make sure to hire professionals experienced in business transactions and e-commerce. Look for those with a background in business purchases, valuations, or e-commerce law.

2. Use Escrow to Minimize Risks

To keep the transaction safe, use the "Escrow" method. This means a trusted third party holds the money until all deal conditions are met, protecting you and the seller. It adds extra security and trust to the transaction.

Most online business brokerages also offer an escrow service, which reduces the risk and ensures you get what you’re paying for.

3. Set the Terms of the Sale

Before you buy, clearly define the terms of the sale. Make a detailed checklist of everything you expect to get in the deal, like the domain, mailing list, social media accounts, and after-sales support. This ensures everyone understands the agreement and reduces the risk of misunderstandings or disputes.

Once the terms are set, transfer the purchase money to the escrow account. This keeps the funds secure and ensures they are only released when all conditions are met. Also, agree on an inspection period, during which you can thoroughly review the store you’re buying.

4. Do a Final Check of the Store

During the inspection period, thoroughly examine the business. Look at all important data, including past and current orders, customer info, and financial records. Check the assets to make sure everything matches what was promised. This is your chance to confirm that the store meets your expectations and the criteria you set during your research.

If you’re happy with the inspection and everything is in order, you can finalize the transaction. The escrow service will transfer the money to the seller, completing the purchase. Congratulations, you now own a new online business!

*Note: While using Escrow and a broker is ideal, you can buy a Shopify store privately to save on fees. This needs careful checking, thorough research, and professional advice. Make sure to follow a secure process to protect your investment and succeed.

Risks to Watch Out for When Buying a Shopify Store

To minimize all possible problems ahead, remember to put even more time and effort caring about these things:

1. Common Mistakes

2. How to Avoid Them

Keep these common mistakes and ways to avoid them in mind to make sure you make a good investment when buying a Shopify store.

Tips to Get Succeed After Buying a Shopify Store

After buying a Shopify store, there are a few key actions that can help you succeed. 

• First, get to know your new store well by looking at how it currently runs, who the customers are, and what marketing strategies are in place. 
• Stay in touch with existing customers and ask for their feedback to see what’s working and what needs improvement. 
• Invest in good marketing to attract more visitors and boost sales, using social media, email campaigns, and SEO. 
• Regularly update your products and keep an eye on industry trends to stay competitive. 
• Lastly, provide excellent customer service to build loyalty and encourage repeat business. 

Apart from those considerations, another crucial investment is to personalize the design of your Shopify store. If you want your Shopify business to stand out and be unique, you don't want your store looking just like your competitors'.

If you're not an expert in technical stuff, consider using EComposer—Top Drag & Drop Shopify Page Builder, designed specifically for you. You won’t need any coding knowledge to build pages on your store.

Others also read

Top 12 Best Design Tips to make a Professional Shopify store

7 Must-have Website Design Elements for a Successful Shopify Store

Top 12+ Proven Tips to be Successful on Shopify

In Summary

Buying a Shopify store may seem more straightforward than starting from scratch, but it's actually quite complex. It's a significant decision that can be emotional for both the buyer and seller, impacting finances and reputations.

With a lot of money and your professional reputation on the line, we hope our guide helps you seamlessly get through all of these struggling steps. If you need help with store page design, EComposer is here to assist you every step of the way.

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