Your online store has value. But how much? This quick FAQ guide gives you direct answers—the multiples, the formulas, and the factors that determine what a buyer will actually pay.
Know Your Store’s Worth
Quick Answers (Top 5 Most Common Questions)
1. How much is my online store worth?
Your store is worth 2.5x to 3.5x annual SDE. A store generating $8,000 monthly SDE ($96,000 annually) is worth $240,000-$336,000.
2. What formula do buyers use?
Buyers use the SDE Multiple Method: Annual SDE x Multiple = Value. SDE = Net Profit + Owner Salary + Personal Expenses + One-Time Costs. Full guide: SDE calculation.
3. What drives the value up?
Owned audiences (email lists, organic traffic), diversified channels, low owner hours, 36+ months history, and stable margins. Each factor adds 0.2x-0.5x to your multiple.
4. What drives the value down?
Single-channel dependence, founder dependence, young stores, declining trends, and concentrated revenue. Each factor subtracts 0.2x-0.5x.
5. Can I get a free valuation?
Yes. Use a proper SDE-based calculator—not a revenue-only toy. Enter accurate data and score your five factors honestly.
Advanced Valuation Questions
6. What are add-backs?
Expenses that won’t transfer to a buyer: your salary, personal car, health insurance, one-time costs. They increase SDE by 15-25%. See our add-backs guide.
7. Does my email list add value?
Yes. An engaged email list is worth $1-$3 per subscriber. 10,000 engaged subscribers add $10,000-$30,000 to your valuation.
8. What’s my inventory worth?
Saleable inventory: 50-100% of cost depending on age and turnover. Inventory under 60 days old: 100%. 60-180 days: 70-85%. 180+ days: near zero.
9. Should I get a professional appraisal?
For stores under $100K: free tools are usually sufficient. For stores $100K-$500K: consider a broker opinion. For stores over $500K: professional appraisal recommended.
10. Can I increase my value before selling?
Yes. Diversify traffic, reduce owner hours, document SOPs, and build your email list. A 90-day improvement sprint can add 0.3x-0.7x to your multiple.
Timing & Process Questions
11. How long does it take to sell?
60-120 days typical. Smaller stores sell faster (30-60 days). Larger stores take longer (90-180 days).
12. When should I sell?
Sell when your metrics are strongest—growth up, margins stable, traffic diversified, owner hours low. October-November listing with January-February closing is ideal.
13. What documents do buyers want?
P&L statements, bank statements, analytics, tax returns, supplier contracts, and add-back documentation. Organize before listing.
Risk & Red Flags
14. Why would my store sell for less?
Platform dependency, single-channel traffic, founder dependence, and poor documentation all trigger discounts. Buyers price for risk.
15. What should I never do?
Never hide problems. Buyers find everything during due diligence. Disclosure builds trust. Hidden problems kill deals.
Know Your Store’s Worth
