Has anyone bought a semi-passive ecommerce biz?

[ljean]

I have a very successful real estate business but would like to diversify a bit with a semi-passive investment into an ecommerce biz. I'm looking for something priced under $500,000 that nets at least $100,000 without much time required. Does something like this exist?

 

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[jon.a]

Terrible first post.

 

[FreshStart87]

Terrible first post.

Lol Jon I remember when you flagged my first post. I think that many people new to forums or online communities forget that they must introduce themselves as they would in physical settings.

 

[jon.a]

GOLD - Absolute Beginners Guide to TMF & TFLF

 

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[ljean]

Sorry, I didnt think anyone ever read "introduction" posts. I know I never do.

 

[jon.a]

Sorry, I didnt think anyone ever read "introduction" posts. I know I never do.

Stop posting until you look around a bit longer and see if you think that you'll fit in here. Follow that link that I dropped.

 

[biophase]

I have a very successful real estate business but would like to diversify a bit with a semi-passive investment into an ecommerce biz. I'm looking for something priced under $500,000 that nets at least $100,000 without much time required. Does something like this exist?

To answer your question, if you are looking to pay $500,000 for a business that nets $100,000 there are plenty of people who would sell a business like that to you instantly.

But with that said, if you paid even $300k for a business that made $100k today, and you spent little time on it, you would never get your $300k back. This is because a $100k ecommerce store today will become a $30k ecommerce store in less than 3 years if you just let it plod along and die.

The landscape moves so fast that your store you be in the old ages in 2020. Think about 3 years ago, 2014. Where was Facebook ads? Where was Instagram?

 

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[FreshStart87]

To answer your question, if you are looking to pay $500,000 for a business that nets $100,000 there are plenty of people who would sell a business like that to you instantly.

But with that said, if you paid even $300k for a business that made $100k today, and you spent little time on it, you would never get your $300k back. This is because a $100k ecommerce store today will become a $30k ecommerce store in less than 3 years if you just let it plod along and die.

The landscape moves so fast that your store you be in the old ages in 2020. Think about 3 years ago, 2014. Where was Facebook ads? Where was Instagram?

I guess its safe to say that that is a good thing for someone on the hunt for oppurtunities. Have you ever bought a store and if so what the due diligence process for online retail stores. Actually thats a broad question, but what are main things you would look for.

 

[biophase]

I guess its safe to say that that is a good thing for someone on the hunt for oppurtunities. Have you ever bought a store and if so what the due diligence process for online retail stores. Actually thats a broad question, but what are main things you would look for.

Yes, I have bought some small stores. Back that was a while ago. I usually looked for traffic and its traffic sources (Google rankings). Back then, there was no facebook or social media, but today I would look at likes and followers too. Today, I would focus more on the store's products and how I could import a better product to sell in the store.

 

[QDF]

Yes, I have bought some small stores. Back that was a while ago. I usually looked for traffic and its traffic sources (Google rankings). Back then, there was no facebook or social media, but today I would look at likes and followers too. Today, I would focus more on the store's products and how I could import a better product to sell in the store.

I agree with biophase - I wouldn't fork over that much money for an ecommerce store. Actually, if I were to look at buying an ecommerce store, I would look for stores with large social media followings, and few products, or products that the margins can be expanded on a lot (e.g. if a store is buying products wholesale or something, switch to manufacturing and branding it yourself). Or a store with a great product to build on, but lacking marketing (not on Amazon, etc.).

In real estate, I would say the equivalent is buying a shitty run down property and fixing it up before renting it out (as opposed to buying a ready-to-go rental property). Little bit more effort, but larger return on your money.

Either way, I wouldn't fork over that much for an ecommerce store if I had it. ecommerce has great time and scale factors, but is inherently lacking in control in many ways, and the environment is still changing too rapidly to stretch a breakeven period for the purchase price to 3-5 years when there are better alternatives.

 

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