The following is a guest post by Jake Rheude at Red Stag Fulfillment.
eCommerce has become a critical part of the global business landscape. A majority of industries have added eCommerce services thanks to the ongoing digitalization and demand for online services by customers. According to statistics from Zippia, there are currently 12 - 24 million eCommerce websites globally, and more are being created daily.
Because eCommerce is booming, there is also a growing demand for already existing businesses by investors. Well-funded investors are leveraging their capital to buy eCommerce businesses if there’s an opportunity for growth and increased profitability. Therefore, if you are planning to sell your business, you need to package it in a way that it’s attractive to the buyer.
Optimizing your business will make it more lucrative and increase your chances of selling it at a maximum profit. So how can you make this happen? This article will look at a list of things you should do as a seller to improve your business valuation.
What Is eCommerce Optimization?
eCommerce optimization involves a detailed process, and the strategies businesses take to improve the website's conversion rate. This covers elements such as the website layout, design elements, navigation, products, sales, marketing, and analytics.
When optimizing your online store, the process should be unique to the individual needs of your brand and customers. In this case, if you are looking to sell the eCommerce business, the optimization should be tailored in a way that it attracts potential buyers who'll buy the company at a profit.
Optimized Processes Every eCommerce Business Needs
Here are some optimized processes you should implement to prepare your eCommerce for sale.
Prepare The Site for Sale
When a website is well optimized, it increases the chances of ranking much better, attracting more customers, and increasing sales. You can optimize the site by implementing SEO practices, incorporating keywords, and working on the metadata. Buyers will be more attracted to purchasing an eCommerce business with organic reach and high rankings.
To improve user experience, you also need to upgrade the navigation and page designs. Your landing pages are critical to making a good first impression on the customer; therefore, they should be updated.
According to research by Statista, users spent about 23 minutes on the most visited websites; this means, you need to find ways to capture the audience's attention. For instance, you need to ensure that your content is relevant, updated, and trustworthy. Your site should also be designed well.
If the site is easy to navigate and has an excellent design, customers can find information easily and stay on the site much longer. Investors are looking for such websites that have the potential for increased sales.
Preparing Social Channels
Social media is an integral part of digital marketing today. Statistics show that 93% of marketers use platforms such as Facebook, Instagram, LinkedIn, and TikTok for advertising. For your eCommerce business to be marketable, it needs to have social channels that are working effectively.
Ensure that the platforms are polished by consistently updating content and that they feature up-to-date information about the business products and services. Additionally, you can automate the pages to ensure the posts are on track.
Buyers pay attention to eCommerce businesses with organized social channels because it's a means to gather information for targeted ads, expand brand awareness, and help the company connect with customers. Furthermore, with social media, you can get faster customer feedback.
If you are running an eCommerce business, inventory management is important because it provides information about the current stock levels, sales volume, and the physical space and team size you need to help you forecast future sales. When preparing your business for a sale, you need an inventory management system that provides all this information.
A potential buyer will want to see updated information about the current products in your warehouse, your order fulfillment process, and how you meet customer deliveries. You should also optimize images both on your website and social media pages to let the customers know what is in stock.
Eye-catching images are one of the ways to help the eCommerce business grow. This is because they convert at the highest rate and the visuals help the customers in the purchasing process.
Working On Analytics
Analytics tools make it easy to track key metrics on your website and understand what's working and what's not. This data helps you identify areas that led to customer drop-offs, most visited pages, and which elements in the website contributed to more sales.
Installing tools such as Google Analytics provides your eCommerce with tools to analyze your website data in one place and make better decisions. You can extract relevant data about your users and design better strategies. With such information, you can appeal to a buyer because they know the weaknesses that need to be improved. They can use this data to turn around the eCommerce business.
Organize Time-Consuming Processes
You'll increase your chances of selling your business at a profit if your operations and system are well organized. You can negotiate and justify a high-selling price if your financials, accounting, and customer service systems are well-coordinated.
Before putting the eCommerce business out for sale, work on automating your business systems by incorporating business software such as ERP and CRM. This makes it easy to manage the business if all the processes are integrated into one place. Investors are more likely to consider such a business since it saves them time and money, and they can focus on growth.
Invest In Sales and Traffic
To boost traffic on your website, you have to appeal to the customers. You can attract them by having a pricing tactic, offers, and discounts such as flash and seasonal sales. If your prices and discounts are more affordable, you are more likely to make sales from your eCommerce website.
For your sales to improve, you also need to focus on building brand loyalty. If your company’s image and reputation align with your customers, they will keep buying from you instead of the competition, boosting your website traffic.
You'll increase your conversion rate and overall sales with the right prices and offers. Additionally, you can invest in sales by placing your products on Marketplace platforms such as Amazon or Instacart. Advertising on such platforms gives your business more visibility among buyers and will increase your consumer base and sales.
This strategy is important because most investors will pay attention to eCommerce businesses that bring in a return on investment. Therefore, if your company has this in place, you’ll spark the interest of a potential buyer.
Prepare For The Sale
Once your website is optimized, social media channels are planned, and your business systems are organized, you can start preparing your eCommerce business for the sale. You'll need a detailed evaluation from a business appraiser to find out how much the business is worth. This tactic will help if you need to negotiate the selling price.
Furthermore, it would help if you found a broker to help you with the sale. Ensure that you get one who understands the business and industry you are in. Brokers can be helpful because they help prepare particulars about your business and advertise the eCommerce option to buyers. In addition, they'll introduce you to the potential buyers who want to make an offer and manage the entire sale process.
If you want a profitable exit, you must package your business well for potential buyers. Although the trend of buying eCommerce businesses has been there since 2018, it has picked up in the last two years since the onset of the COVID-19 pandemic, as more shoppers shifted to online shopping.
Most of these buyers focus on businesses that generate steady cash and have regular payments. Therefore, if you own an eCommerce business that you intend to sell, you can start preparing the site, managing your inventory, and organizing business systems to spark buyers' interest.