7 Steps before buying an Ecommerce
7 Steps You Must Do Before Buying an Ecommerce Website
There are many reasons why buying an ecommerce website is preferred over building one from scratch. Regular income and an established client base are some benefits of buying an ecommerce business. However, ensuring that the ecommerce website is worth the investment is essential. In this post, you will find 7 steps you must do before buying an ecommerce business.
1. The Traffic
Although high traffic does not necessarily translate to increased sales, you can’t make sales from an ecommerce business if there is no traffic. You can check whether an ecommerce store is getting traffic using reliable tools such as Google Analytics.
When looking at website traffic, consider checking how it has evolved. Does it seem to be growing continuously, or are there issues affecting its growth? Always ask the website owner for an explanation to avoid surprises.
Although it may not always be the case, a drastic drop in traffic may denote penalization. A penalized site shows that the owner may have done something contrary to Google’s policies. You can remove the penalty, but you will need more time and resources to rebuild the site.
2. Where the Traffic Comes from
Although buying a site with high traffic is advisable, it is essential to note that not all traffic may be appropriate. You should ensure that the website is visited by people who can buy from you.
Evaluate the keywords that drive the traffic and ascertain if they are appropriate for your business. If the site is getting traffic from keywords that don’t have anything to do with the goods and services you intend to provide, it is not worth the investment.
Also, evaluate where the audience is coming from. For instance, if you intend to sell winter coats and a significant amount of traffic is coming from Indonesia, you will likely make enough sales.
It would also be best if you also focused on the backlinks. A website with many backlinks from unrelated sites can affect your ecommerce business. You may also need to watch out for backlinks from forums, overseas sites, and comments.
3. The Site’s Bounce Rate
The bounce rate is the percentage of visitors who leave the site immediately after viewing one page. A high bounce rate can reveal that a site is dull or unattractive. A bounce rate of 86 shows 86 out of 100 site visitors left the site after viewing only one page.
The average bounce rate is 40-55%. It shows that the site is getting traffic and that the offered products satisfy visitors.
4. The Income and Expenditure
Before buying an ecommerce business, consider looking at its financial report. First, check whether it is generating enough revenue. If the site owner spends more money to maintain it, you will likely spend more than you generate. Considering the amount of money you invest in purchasing the website, this can be a significant financial loss.
Always ensure that the site owner does not hide anything from you. The last thing you want is to purchase a site with subscriptions or contracts you were unaware of.
5. Customer Satisfaction
Check the customer feedback and testimonials on the website, marketplaces, social media pages, and support ticket logs. You can also find customer feedback by conducting a Google search. However, the search may not help you find customer feedback for small stores.
Consider purchasing an ecommerce business with many returning clients. This indicates that buyers are interested and satisfied with the quality of products and services offered.
6. Dealers and Suppliers
Find out where the business sources its products from. This will help you ascertain what will happen to the existing supply agreements once you take over ownership of the website. Check whether the store has the relevant licenses and permits. The last thing you want is to face a lawsuit because you have a website that sells merchandise without a proper permit.
7. Your Skills
Ensure you have the relevant skills required to manage the ecommerce platform. With the right skills, you can maintain sales while avoiding violating Google policies. If you don’t know how to maintain the website, consider learning or hiring someone who can handle everything on your behalf. Remember to factor that into your budget to ensure your new ecommerce business is profitable.
Get the Help You Need From Balanced Processing Partners
Are you considering buying an ecommerce business? Balanced Processing Solution Partners is ready to help you find solutions worth the investment. Whether you need a payment gateway or a personalized ecommerce solution for your business, we’ve got you covered. Contact us today and let our friendly customer support representatives help you get started.
For more information on how it can benefit both of our businesses by calling (800) 354-6256 or emailing [email protected]