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timebandit

Buying A Online Retail Business

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We have been looking for a commercial freehold business for the last few years, however we never proceed because of the unrealistic valuations.

In the meantime since getting laid off, we have been ticking over with mostly agency work.

While doing my checks for new businesses I often see online retail businesses for sale and another example.

Taking for granted these business are genuine ;) being completely clueless with online shops, paying for google first page (do I really pay to be on page one)? and tthe every day running of a website.

What over costs would should I be prepared for?

All advice welcome.

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Ask yourself why they are selling it.

Setting up an online business has very little cost. Lots of people have web skills and there are complete packages to do most of it for you.

It may well have had 100k sales in the last year. All that means is that he got his dad to place 100k of orders then gave him the money back.

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Typically I'd have thought you're buying a whole lot of nothing.

Only exception might be if they've spent a lot of money developing something that you could easily bastardise to sell you own product for less than the cost of building from scratch. Even then there's off the shelf stuff like ekm powershop - don't particularly rate it but better than nothing.

These days with things like eBay and Amazon it's fairly easy to try out buying and selling for profit at a very low risk/outlay.

Have a bash at that and see if retailing's your forte - Useful to test customer service standards too- ebay's standards are pretty excessive TBH but many retail start-ups provide woeful/don't have a clue about customer service and badly undermine the potential for repeat business.

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Keill Trading Ltd looks like they make sites to sell on?

http://www.google.com/search?q=+01483+795000&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-GB:official&client=firefox-a

I'd be suspicious.

If you have an interest and knowledge in an area to make it work then start it from scratch... The skills you'd need are all fairly easy.

You can get a database of products in google shopping and that brings sales.

Go read around buying shopping cart systems for websites. It'll cost you less that way.

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IMHO less risky and less costly to start yourself, you might aswell not pay yourself and swallow any cost in loss of income as you get started.

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Thank you all for the feedback, not sure I understand it all. :D The two examples from the first post are not the business we have in mind.

The established business we have in mind would be completely alien to us and expensive. What I will do as you all suggested, go and do and my research, why pay the money.

Thanks all

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Thanks TMT at this stage we are not sure we want. Just getting frustrated at travelling around the UK looking at freehold businesses, only being disappointed with either the fantasy valuation or lack of investment from the vendor.

In the real world like everyone else we want to see drop in valuations after four(+) years of waiting. We then see these online trading shops for sale and think we could move to our first choice location and work from home. If it only was that easy :D

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Thanks TMT at this stage we are not sure we want. Just getting frustrated at travelling around the UK looking at freehold businesses, only being disappointed with either the fantasy valuation or lack of investment from the vendor.

In the real world like everyone else we want to see drop in valuations after four(+) years of waiting. We then see these online trading shops for sale and think we could move to our first choice location and work from home. If it only was that easy :D

I began an an online business a few months ago - it has been hit and miss, partly due to being new to it and partly due to lack of time.

I now have 2 choices - give up and fail, which most do, or try something else.

I think there is still enormous potential in online businesses.

Personally, I would start your own from scratch as opposed to buying someone's elses online business.

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I think its easier just setting up a new business personally, it might also pay to read up on how to sell as well.

The exit strategy is important.

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What selling a business? Why not leave it to the staff as a reward, theres greedy and greedy imo.

Greed is peoples undoing imo.

If that's your exit strategy then that's fine.

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I would think that what you are purchasing with an on line business is goodwill....thats the existing customer base built up by getting a good reputation.

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The problem with these business is the value is really in the person running it. My boss bought an online business and tried to integrate it into the core business we ran, it wasn't really scalable and if you truly accounted the costs involved it didn't make any money - it's just that I did the admin stuff, but wasn't paid any more for doing that. In the end we took the 2 customers to integrated and then closed it down. It was interesting for my point of view, as I ran everything so learnt a lot, but didn't really make much at all.

Looking at that business you link to, it would only really work as a home business and the £29k profit would be your salary. I dare say that would take up a huge amount of your time too.

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We have been looking for a commercial freehold business for the last few years, however we never proceed because of the unrealistic valuations.

In the meantime since getting laid off, we have been ticking over with mostly agency work.

While doing my checks for new businesses I often see online retail businesses for sale and another example.

Taking for granted these business are genuine ;) being completely clueless with online shops, paying for google first page (do I really pay to be on page one)? and tthe every day running of a website.

What over costs would should I be prepared for?

All advice welcome.

that royals of london is hosted on 123 reg and has the same IP as hundreds of other websites.

You would have to move it to a dedicated IP to full flexibility.

The only real value would be the stock and the goodwill.

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I was thinking of setting up an online mobile car servicing one stop shop, for all your car needs networking local car mechanics, tyre fitters etc and then flogging the business to Halfords fo £250M, then I woke up. You book the service, they collect the car or come to your house/place of work, they deliver a courtesy car etc. The one stop shop also provides car insurance, breakdown and even will help trade in your car for the newer model, with finance in place all in a one stop shop on a cloud platform. Your car history is also on cloud, so your manufacturer will remind you when you need your cambelt changed etc. The next generation of car will have itself linked to the internet so it can tell you what needs doing also.

Good luck, there's a free idea. I'm too lazy of course to set something like this up, and I am taking a free ride on the money mountain with internet start-up shares.

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Look at any business with a premises. These are prime juicy cuts just right for the basis of internet attack.

How about a mobile property services internet company. A one stop shop that provides decorating, plumbing, electrical, roofing, gas services, cleaning, carpet fitters, window fitting, etc that links a nationwide network of service providers to customers. Need a room painted? Enter the wall area, colour, the dates when the work people can do the work, and a preliminary quote comes straight back over the internet.

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Thank you for all the feedback, I will look at the links tonight. The company we are looking at (not the examples given in the first post) as a dedicated server, over 13,000 customers and a newsletter to over 20,000.

Reading your contributions, I believe I do not have the skills yet or will have to start or build a professional retail website.

I have looked at Ebay (no account) and dropshipping (small profit margins if any)

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Are you using your lack of expertise as an excuse to part with your money and buy one?

If so, that is really bad logic.

Build expertise, then deploy it before parting with said cash.

Yes that is part of the problem, always thinking armageddon just waiting for me to buy. :)

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I help run a company e-commerce and ebay shop...you have to get the market absolutely correct, as the margins are so thin. Moreover, if you can find distributors that provide product feeds, that half the work done for you...you effectively dont have to keep much physical stock..

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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