New member-Hello

[eugene]

Looking forward to leaning on the knowledge base which seems to be available here. I am in the process of DD on buying a ecommerce site. Looking for guidance to make sure I look in the right spots.

[KenW3]

Welcome to Experienced-People.net. There is an excellent resource on Due Diligence on the parent domain of this forum. Experienced-People.co.uk also has excellent sections for Buy a Website and Sell a Website, available from the home page. While the section on buying would be helpful for purchasing, it never hurts to know what the seller should be doing during a sale, as this allows you to evaluate their experience level for selling.

There is a lot of good information here. Please feel free to ask about anything

[Clinton]

Hi eugene, welcome. I just made a post here that you may find useful. What type of price bracket is your prospect site in?

[eugene]

Clinton,

Thanks I will review the post in detail. The company has gross revenue in the 400,000-500,000usd range. Sells niche product that is needed for everyday use or solves problems. Daily unique visitors is close to 1500. Net to owners is about $40,000 /ys. I have an accepted offer close to $100,000. Site has been operating in this market for over 5 years. Site establish in 1998. #1 on google for many of their products. Most drop ship but for higher volume they inventory.

What else can i tell you. I would like to give you the site but I am under a NDA. Maybe I can in a PM.

Thanks for your help in advance.

Eugene

[Clinton]

Eugene, thanks for your PM offer, and PM, but when I started these forums I stopped taking on DD work. You can either disclose the URL publicly or, if under an NDA, you could have a look here.

Once you have a few posts and get access to the VIP Lounge, you have other options such as "Groups" where you can setup a private group and invite only certain members to comment. No general members can see your posts in there except for those you invite.

2.5x net seems a bit steep for a drop ship that's heavily reliant on Google, but unless you put more details out it's difficult to provide any advice specific to this case. The gross to net ratio seems another risk. It's very rare that an internet business makes a net of less than 10%.