How To Sell Your Shopify Store Successfully And Maximize Profit

Deciding to sell your Shopify store is a big step. Whether you're looking to move on to a new project or simply cash out, understanding the process will help you make an informed decision. Here’s what you need to know to sell your Shopify store smoothly and efficiently. 

Step-by-step guide on how to sell Shopify store

Whether you’re looking to cash out or move on to a new project, selling your Shopify store can be a remarkable experience. However, to ensure you maximize your sale price and avoid mistakes, it's essential to approach the process with a clear plan. 

Step 1: Valuation for your business before selling

Before we dive into valuing your Shopify store, it’s important to address a common misconception among sellers.

Entrepreneurs often overestimate their business’s value due to emotional attachment and optimism about its future success. However, the value of your business is based on its past and current performance, not its potential or the effort you’ve invested. While calculating your monthly profit is simple, determining your sale multiple involves many factors, which are explained below.

• Business age

The age of your Shopify store is a key factor when selling. Older businesses are usually valued higher because they’ve had time to prove their ability to survive and grow.

A newer business might be growing fast, but it hasn’t faced as many challenges. Things like Google updates, bans on platforms like Amazon, or new competitors can harm a younger business. Older businesses, on the other hand, have already dealt with these issues and continued to succeed.

Established businesses are also more likely to have a strong brand and loyal customers, which makes them seem more reliable to potential buyers. This stability and trust can make your business more attractive, especially for future growth.

Older business often has higher value when it comes to selling your store

• Diversity 

To protect your business from risks, it's important to have different sources of revenue and traffic. If your business relies on just a few products from a few suppliers for all its income, any changes - like a product being discontinued or supplier issues - could result in losing all of your revenue. Similarly, if you get all your traffic from Google search, a change in its algorithm could lead to a big drop in visitors to your store.

• Brand strength

Selling products and making a profit is just the start. Having a strong brand in your market, with good reviews, an active social media following, high rankings for popular keywords, and unique or trending products, can help you sell your business for a better price.

A trusted brand doesn’t just build customer loyalty; it also makes your business more competitive. Buyers are often willing to pay more for a business with a strong brand, as it shows potential for future growth and success.

• Owned assets

Owned assets are anything connected to your business that has financial value. This includes things like your supplier contracts and relationships, which show how strong your product lineup is. Other examples are your email list, trademarks, employee contracts, and social media accounts.

Owned assets are another factor to evaluate your business

Step 2: Prepare your Shopify store before selling it

Selling your business is simple once you're prepared. Here’s how to make the selling process smooth, whether you use a broker, marketplace, or sell to people you know:

• Improve processes: If you're having issues with important areas like your supply chain or advertising, it's best to fix those first. However, instead of waiting for a seasonal sales boost, experienced buyers will already consider the impact of seasonality on your business.
• Organize finances and audit books: Buyers will want to see your business performance, so start by using Shopify’s built-in analytics. Make sure your accounting system clearly shows your income and expenses, including profit & loss statements, balance sheets, and cash flow reports. If you have any unpaid bills or debts, either pay them off or create a plan to manage them.
• Share details about customers and operations: After signing a non-disclosure agreement (NDA), you can provide information on website traffic, sales, inventory, supplier contracts, customer lists, and intellectual property you own.
• Keep operations running smoothly: Continue managing your business as usual. Update your financial records, restock products, and track marketing expenses.
• Prepare for a smooth transition: Ensure your business is ready to transfer to a new owner. Check if employee contracts can be transferred if the buyer wants to keep your staff, and confirm that your store’s terms of service are up to date. If needed, agree in writing on how you’ll assist the new owner after the sale.

Step 3: Pick where to sell your Shopify store

Different platforms and methods appeal to different types of buyers and offer various ways to value your business. Choosing the right place to sell can help you find the best option for your Shopify store, potentially increasing its value. If you are wondering where to sell your Shopify store, there are three main ways to do it.

• Private sale

There are many online groups where business owners can list their store for sale, and buyers can contact them directly. However, while this gives you full control over who you sell to and the price, there are some risks to consider.

Selling privately can expose you to scammers who may try to buy your business without paying. Even if the buyer is genuine, experienced buyers can often negotiate better deals. Many new sellers set their price too high because they’re emotionally attached to their business, which can lead to them selling for less than it's actually worth.

If you go this route, it’s important to have trustworthy buyers and legal support to make sure the sale is done properly and fairly. Without these, and especially if it’s your first time selling, a private sale can be risky.

• Online marketplace

Online marketplaces are generally monitored to prevent illegal activities, but you’re still responsible for ensuring the sale is legal and that payment terms are met.

Selling through an eCommerce marketplace gives you access to a larger number of potential buyers compared to online groups or communities. Thousands of people, including experienced buyers, will be able to see your listing.

As Shopify’s official Exchange marketplace has been closed since November 2022, selling your Shopify store on third-party platforms might seem challenging. However, platforms like Flippa, Acquire, Empire Flippers, and Investors Club work similarly to Shopify Exchange and offer a wide reach of buyers.

Just be aware that selling on a marketplace can take time. You may have many people reach out, but most of them might not be serious buyers. Additionally, some marketplaces use pricing methods that may not fully reflect the unique qualities of your business, which could result in a lower sale price than expected.

• Business broker

A broker is a person or company that knows potential buyers. If they think your business could interest their network, they will connect you.

Some brokers focus on certain industries or niches, so it's important to find one that fits your business. If you decide to work with a broker, be prepared to pay a fee. They usually charge a percentage of the sale price, typically between 10% and 15%.

You can sell your Shopify store through a private sale, marketplace or business broker

Step 4: Negotiate the sale

When selling your Shopify store, the negotiation process can vary. Some listings may have a set price, while others allow room for discussion. If you’re given the chance to negotiate, take advantage of it. Buyers may ask for more details or test whether you’re willing to lower your price. 

This is the perfect opportunity to negotiate a better deal and ensure you get the best price for your store. Be ready to engage in conversations and adjust the terms to suit both you and the buyer.

Step 5: Set up an escrow

Sometimes the seller needs to arrange escrow, but other times the marketplace will provide it for all transactions. Regardless, it’s important to never complete a sale without escrow protection. Escrow keeps the buyer’s payment safe until both parties fulfill their part of the deal, giving you and the buyer peace of mind throughout the transaction.

Step 6: Transfer ownership

Once the sale is confirmed and the payment is safely in escrow, it’s time to transfer ownership of your Shopify store to the buyer. Shopify has a simple, detailed guide to help you through the process of transferring ownership. Just follow their steps, and you’ll be able to complete this part of the sale without any trouble.

Step 7: Transfer ownership of any assets as agreed

In this step, you’ll transfer any other assets included in the sale, such as domain names, social media accounts, or inventory, to the new owner. These assets should be handed over as outlined in the sale agreement.

Step 8: Receive your payment from escrow

Once everything is finalized and all terms are met, you can receive your payment from escrow, after the escrow fee is deducted. The sale is complete - the buyer now owns the Shopify store, and you’ve received your payment.

You need to transfer your ownership of your Shopify store to the buyer to receive payment

Reasons to sell your Shopify store 

People decide to sell their online businesses for many reasons, the most common ones include not having enough time to manage the business, wanting to invest in a new opportunity, or using the sale money for something big. Others sell because it provides financial gain, giving them the funds needed for other projects or purchases.

Selling a business can also take away the stress and time commitment of running it, leading to a better work-life balance. Before deciding, it’s important to think about whether selling aligns with your long-term goals. Taking a look at the market and your personal plans can help you figure out the best time to sell.

When is the best time to sell your Shopify store?

When it comes to selling your business, waiting for the "perfect" timing might not be the best strategy. Instead of holding out for a seasonal sales increase or a few months of better performance, here’s the bigger picture:

Smart buyers use data-driven tools to help set prices, and these tools take seasonality into account. They focus on the overall health and profitability of your business, not just its performance during the busy months.

So, even if your business is seasonal or has seen a dip in revenue recently, it doesn’t mean you won’t be able to sell it for a good price. Waiting for a sales boost might actually hurt you. Every month you wait for the "perfect moment" is a month you could have used to move on to new opportunities.

Typically, it takes around 6 to 12 months to get your business ready for sale, find a buyer, settle on a price, and receive your payment. However, with the right support and tools, you can speed things up significantly. 

If you keep waiting for the “perfect” timing, you might miss your best chance to sell

Wrapping up

Deciding to sell your Shopify store is a significant step that requires careful consideration. It can be a rewarding decision if done correctly. You could launch a new business, explore a personal interest, or relax before diving into your next big endeavor. So, if you feel that now is the right moment to sell, go ahead and list your Shopify business for sale today. 

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