Selling an Ecommerce business
Built from hundreds of real buyer-seller diligence conversations we’ve helped happen on Rejigg. These are the ecommerce questions that move price fast: true contribution margin, inventory cash traps, ad dependence, returns economics, and whether Amazon and Shopify assets transfer cleanly.
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What buyers evaluate, and how to prepare
Can you show contribution margin by channel and SKU, not just gross margin?
Deal-criticalContribution Margin
What buyers determine
Buyers are trying to see what you keep after order-level costs that rise with volume: ad spend, marketplace fees, fulfillment, shipping subsidies, and refunds. They also want to see whether profit comes from a few hero SKUs while the rest of the catalog quietly loses money. A clean contribution margin view builds trust because it ties your dashboards back to payouts and the bank.
How to prepare
- Build a bridge from gross sales to net sales to contribution margin by channel
- Create an SKU view for your top 20 SKUs, including ads, fees, fulfillment, and returns costs
- Reconcile the math to real payouts and accounting every month
- Call out step-changes: pricing, new 3PL, promo shifts, policy changes, or big creative swings
Great answer
Yes. We track contribution margin by channel and by SKU, and we reconcile it to payouts each month. For Amazon and Shopify, we start with net sales, then subtract landed product cost, platform fees, fulfillment, shipping subsidies, refunds, and ad spend using the same allocation rules every month. Our top 3 SKUs are 62% of revenue and run 24–28% contribution margin after ads and returns, and we review the long tail quarterly and prune anything that stays negative.
Good answer
We can show gross margin by SKU and overall profit by channel, and we have a reasonable estimate for ads and returns. It’s not fully reconciled every month, but we can explain the method.
Red flag
Our gross margin is 70%, and the rest is just marketing. We don’t break it down by SKU, and Shopify and Amazon are close enough.
How Rejigg helps:Rejigg’s secure data room lets you share a channel and SKU margin pack with the supporting exports, and control buyer access by stage.
How ugly is the inventory calendar, and how much cash does it take to stay in stock?
Deal-criticalInventory Cash
What buyers determine
Ecommerce can look profitable on paper and still need a cash injection because inventory deposits and ad spend hit weeks before the sales show up. Buyers are underwriting whether stockouts will crush momentum after close and whether slow movers will turn into dead stock. They also want your lead times, order minimums, and reorder rhythm so they can plan working capital and financing.
How to prepare
- Create an SKU list with lead time, minimum order quantity, target weeks of cover, and current on-hand
- Share 12–18 months of monthly inventory purchases, ad spend, and sales, with notes for spikes
- Document stockouts and overbuys, plus what you changed in forecasting or reorder points
- Prepare an inventory aging report separating core, seasonal, and slow-moving units
Great answer
We run a weekly inventory review and reorder off weeks of cover. Lead times are 55–70 days for our main factory, MOQ (Minimum Order Quantity) is 2,000 units for the hero SKU, and we target 10–12 weeks of cover going into Q4. You can see 18 months of POs versus sales and the two stockouts we had, including the impact on rank and what we changed. We also flag May and September as cash-heavy months because deposits stack with the ad ramp, and we’ve mapped those out so you can plan for them.
Good answer
We can share lead times and MOQs and give you a sense of how often we stock out. We don’t have a full calendar model, but we can walk through typical PO timing and cash needs.
Red flag
We reorder when we feel like we’re getting low. Stockouts don’t really happen, and inventory is included, so it should be fine.
How Rejigg helps:Rejigg’s data room keeps inventory aging, PO history, and SKU notes together so buyers can model cash needs without guessing.
What’s the real ad dependency, and can performance survive a handoff?
Deal-criticalAds Dependence
What buyers determine
Buyers want to see whether performance comes from a repeatable ad system or from one person who knows the accounts by feel. They are also checking whether ad spend produces profit after fees, fulfillment, and returns, not just a good-looking dashboard. Most of the time, clean trends matter more than a few cherry-picked screenshots.
How to prepare
- Show monthly spend and attributed sales by channel, plus the weekly metrics you actually manage
- For Amazon, share TACoS trend and what moved it: price, stockouts, competition, creatives
- For DTC, share blended CAC trend and your creative testing cadence
- Document who runs ads day to day and where the playbook lives
Great answer
We manage ads against contribution margin and blended spend, and we can show the trends month by month. Over the last 12 months, ads averaged 18% of revenue blended, with a stable Amazon TACoS trend and a Shopify blended CAC trend that ties back to payouts. Creative is produced weekly, and we rotate concepts before fatigue shows up in CPMs (Cost Per Mille) and click-through rates. Execution is handled by a contractor, and our testing rules, naming conventions, and budgets are documented for a clean handoff.
Good answer
We can show spend and performance trends. A lot of optimization sits with me or an agency today, and we’d need to tighten documentation for the handoff.
Red flag
ROAS (Return on Ad Spend) is strong, so ads aren’t a risk. We don’t track trends, and our agency owns the ad account, so we’ll sort out access later.
How Rejigg helps:Rejigg gives you one place to share ad trend files and keep buyer questions organized in direct messaging instead of long email chains.
What’s the platform risk profile on Amazon or Shopify, and is it fixable?
Deal-criticalPlatform Risk
What buyers determine
Buyers are pricing the risk that a platform issue turns revenue off overnight. On Amazon, that usually comes down to account health history, Brand Registry control, listing ownership, policy violations, and unauthorized sellers. On Shopify, it’s clean ownership of the store and ad accounts, realistic attribution, and whether traffic depends too heavily on one algorithm or one paid channel.
How to prepare
- Create a one-page ownership map for Seller Central, Brand Registry, trademarks, Shopify, domains, email/SMS, and ad accounts
- Summarize account health history with dates and outcomes for warnings, suspensions, and suppressions
- Document how you handle hijackers, stranded inventory, and reimbursements
- Be clear about tracking gaps and which metrics you treat as decision-grade
Great answer
Amazon is 58% of revenue, and the account is clean today. Brand Registry is tied to a trademark owned by the company, and we can show the admin path and who controls two-factor authentication. We had one listing suppression 14 months ago for wording; it was fixed in 48 hours, and we tightened our listing edit process afterward. On Shopify, we’re upfront that attribution is imperfect, so we manage to blended CAC and contribution margin trends through tracking changes.
Good answer
We can share account health and Brand Registry status, and we haven’t had major issues. Some items are still tied to personal emails, but we’re cleaning that up.
Red flag
Amazon has never been a problem, so we don’t track account health. Brand Registry is under someone’s login, and we’re not sure who controls two-factor authentication.
How Rejigg helps:Rejigg’s deal workspace keeps platform ownership proof and verification notes organized so diligence stays clean heading into closing.
Are returns, refunds, and chargebacks priced in, and what do they cost all-in?
ImportantReturns Economics
What buyers determine
Buyers want to know whether returns are a managed part of the model or a margin leak hidden across refunds, shipping labels, 3PL handling, and write-offs. They also look for SKU-level drivers because one bad variant can distort the whole picture. In some categories, higher returns are normal. The concern is when the story is fuzzy or the trend is getting worse.
How to prepare
- Break return rate down by channel and top SKUs, including top reasons
- Estimate all-in cost per return, including label cost, handling, and write-offs
- Show return rate trend and what changes actually moved it
- Summarize chargeback and fraud rates, plus what you do to prevent them
Great answer
We track returns by SKU and channel, and we’ve modeled the all-in cost. Shopify returns run 6.8% and Amazon 4.1%. Most issues came from two variants that were getting damaged in transit. All-in cost per return averages $11.40, including the label, 3PL processing, and write-offs for unsellable units. We updated packaging and product page expectations, and you can see returns improving over the last two quarters. Chargebacks run 0.3%, mostly from a few countries we now block.
Good answer
We know our rough return rate and the main reasons, and we can pull SKU-level data. We haven’t fully modeled the all-in cost yet, but we can work through it.
Red flag
Returns aren’t a big deal. We don’t track it by SKU, and it all goes into other expenses.
How Rejigg helps:Rejigg’s data room lets you share returns exports, SKU notes, and policy changes without passing sensitive order files around by email.
Are the ‘assets’ actually transferable: domains, ad accounts, Brand Registry, email, and creative?
ImportantAsset Transfer
What buyers determine
In ecommerce, the assets are usually logins, permissions, and ownership records. Buyers want to avoid a late surprise where the ad account belongs to an agency, the domain sits in a personal registrar, or Brand Registry can’t be transferred. Clean transfer prep also signals the business is operator-ready, not a pile of passwords.
How to prepare
- Build an access list for Shopify admin, Seller Central, Brand Registry, domains, email/SMS, and ad accounts
- Move critical accounts off personal emails and personal cards where you can
- Confirm who controls two-factor authentication and write a transfer plan
- Centralize creative, photography, and product files in a company-owned workspace with permissions
Great answer
We keep a one-page asset map showing owners and admins for Shopify, the domain registrar, email/SMS, Meta and Google ad accounts, and Amazon Seller Central plus Brand Registry. Two-factor authentication is tied to company-owned email and phone access, not a personal device. Creative is in a company drive, and freelancer usage rights are documented. We’ve already tested adding and removing admins, so we know the transfer path works.
Good answer
Most assets are under the business, and we can provide a list of logins and admins. A couple items are still tied to a personal email or a contractor, and we’ll clean that up during the process.
Red flag
We’ll send passwords after closing. The ad account is under our agency’s name, and we’re not sure if it can be transferred.
How Rejigg helps:Rejigg stores the transfer checklist and supporting proof in one secure place so both sides can verify access step by step.
Is supply dependable, or are you one supplier issue away from a margin reset?
ImportantSupplier Stability
What buyers determine
Buyers are looking for predictable landed costs, real lead times, and quality control that prevents surprise defect spikes. Relying on one factory is common, but risk goes up if the relationship is informal or terms can change overnight. They also want to know whether you control anything sticky, like tooling or custom molds, that makes your supply chain harder to replace.
How to prepare
- List suppliers by SKU with location, lead time, payment terms, and recent cost changes
- Explain your landed cost method, including freight, duties, and prep, plus how you true up late bills
- Document QC steps, defect rates, and who pays when issues happen
- Write a real backup plan if your main supplier raises MOQs or slips lead times
Great answer
We can explain our landed cost method, and it includes freight, duties, and prep. Our main factory makes about 70% of units with 60-day lead times and 30/70 payment terms, and we track landed cost changes by SKU across the last eight POs. We run QC every production run with a defined defect threshold, and we have documentation on the two issues we’ve had and how costs were handled. We also have a second factory that has already completed two small runs, so backup supply is proven.
Good answer
We have stable suppliers and can share lead times and terms. QC and backup sourcing aren’t fully documented yet, but we can introduce the buyer and outline the relationship.
Red flag
Our supplier is great and will take care of us. We don’t calculate landed cost beyond the invoice, and we don’t have a backup.
How Rejigg helps:Rejigg’s data room keeps supplier lists, landed cost support, and QC evidence together so buyers and lenders can follow the story.
What would break if you stopped working tomorrow, and who are the ‘can’t lose’ people?
ImportantOwner Dependence
What buyers determine
Buyers want to price in what it costs to run the brand without you and where the single points of failure sit. In ecommerce, that’s often ad decisions, reorder approvals, Amazon case work, and customer support escalation. If earnings look high because you or a family member quietly works 20–30 hours a week for free or cheap, most buyers will adjust price or ask for a longer transition.
How to prepare
- Map weekly responsibilities by role and name the owner for each task
- Write down the cadence: ad checks, inventory review, support reporting, and reorder triggers
- List contractors, agencies, and family help with hours and pay
- Create simple handoff notes for the top 3 founder-only processes
Great answer
If I stopped tomorrow, three areas would slow down first: reorder approvals, ad budget shifts when ad creative fatigues, and Amazon case management. Each has a named owner today. Our ops lead runs forecasting and POs on a weekly cadence, and our ads contractor executes against documented testing rules and budgets. Support is covered by two part-time reps with clear escalation rules, and we can show peak-week ticket volume so staffing stays realistic.
Good answer
I’m still involved in a few key areas like ads and inventory decisions, but contractors handle much of the execution. We’ll need to formalize the handoff and plan a transition period.
Red flag
Nothing would break. I only work a couple hours a week, and it’s all in my head anyway.
How Rejigg helps:Rejigg’s deal workspace helps you define transition duties and keep SOPs and training docs organized for the buyer.
What growth lever has already worked at a small scale, and what did it cost?
Good to haveGrowth Proof
What buyers determine
Buyers pay more for growth when you can show one or two levers that already worked and didn’t blow up margin, returns, or stock levels. They also want to understand the real constraint because scaling an ecommerce brand usually requires more inventory cash, more creative volume, or both. A tight test with real numbers beats a long list of ideas.
How to prepare
- List 3–5 growth plays and tag the constraint: cash, lead time, creative bandwidth, or compliance
- Show one test that worked and the before/after impact on margin, CAC, or conversion
- Separate promo-driven spikes from baseline demand
- Tie the plan to inventory capacity and lead times
Great answer
We have two growth plays that are already validated. A bundle lifted contribution margin by 4 points and now shows up in 22% of Shopify orders without pushing returns up. A new Meta creative angle scaled for six weeks before fatigue, and we’ve documented the cadence and production cost to keep new ads coming. The constraint is inventory cash because lead times run 60+ days, and we’ve mapped the PO dollars required to scale.
Good answer
We have a few ideas we think will work, and we’ve tested some lightly. We haven’t tied them to inventory and cash needs in a detailed way yet.
Red flag
We have tons of growth opportunities. We just haven’t had time, but a buyer can definitely 10x it.
How Rejigg helps:Rejigg helps you talk directly with vetted buyers and track which growth thesis they underwrite in offers and follow-up questions.
Straight from buyer evaluations
“The brand was selling through Amazon, their own website, and starting to get into wholesale. Having revenue from multiple channels like that is hard to find, and it makes me feel much safer about the business long-term.”
Multiple Sales ChannelsBuyer impressed by a brand selling through multiple channels
“The main product listings were converting at 15 percent, returns were under 5 percent, and the ad spend was paying for itself three times over. Those are real numbers I can work with. Give me more inventory and more budget and this thing grows.”
Strong PerformanceBuyer analyzing a well-performing ecommerce brand
“What impressed me was the supplier setup. Two factories that can each make the product, costs documented for every item, and orders arriving in under 60 days. That kind of supply chain discipline is what separates a real brand from a side project.”
Reliable SuppliersBuyer reviewing a well-organized private label ecommerce operation
“They had trademarks registered, brand protection set up on Amazon, and design patents on their best sellers. When I see that level of protection, I know the brand is real and I can defend it long term.”
Brand ProtectionBuyer impressed by the brand protection at an ecommerce company
“The owner had already handed off advertising and customer service to a two-person team with clear instructions for everything. I'm not buying someone's daily grind here. I'm buying a business that runs on systems.”
Systems That RunBuyer seeing a self-running ecommerce operation
How buyers value this type of business
Where you land in that range depends on whether you sell through multiple channels or just one, how strong your brand protection is, and whether the business runs without you managing ads and orders every day.
3x–8x
annual profit
Depending on channels, brand strength, and how much runs without you
What drives a premium
- Selling through more than one channelBrands that sell on Amazon, their own website, and through wholesale are worth more because they're not dependent on any single platform.
- A registered brand with trademark protectionTrademarks, design patents, and brand protection on Amazon show buyers the brand is protected and competitors can't just copy you.
- Clear costs and profits for each productWhen you can show exactly what it costs to get each product to the customer and what you make on it, buyers feel confident the profits are real.
- Advertising run by your team, not just youWhen someone else manages your ad campaigns with a clear process, buyers see a growth engine that works without the founder.
Common add-backs
Your salary above what you'd pay someone to run thingsProduct samples and prototypes for items you haven't launched yetPersonal software subscriptions bundled into the business accountOne-time inventory write-offs from products you discontinued
What the process looks like
5–8 months from listing to closemedian 201 days across closed deals
- 1ListingThe day your business goes live on Rejigg.
- 2First messageMedian: 4 days laterA buyer requests a conversation by sending a first pitch.
- 3First callMedian: 7 days laterYour first completed call with a buyer to answer questions about your business.
- 4Letter of intentMedian: 59 days laterA buyer submits an LOI and you choose to accept, decline, or negotiate.
- 5Deal closeMedian: 89 days laterAssuming all is well in due diligence, you close the deal.
Typical buyer types
Ecommerce brand operators looking to add complementary products to their portfolioExperienced ecommerce operators who'd rather buy a proven brand than start from scratchCompanies in related product categories looking to expand into yoursBuyers with marketing or operations experience who want a business with clear, proven profitability
Common questions about selling an Ecommerce business
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