Why Buy An Online Business? by Website Properties
Have you ever questioned why you should buy an online business rather than creating an eCommerce store from scratch? The truth is that these are the two primary ways that you can invest in an online business. You can put in a ton of work to create a business on your own or you can buy an established online business. It’s pretty clear even from that statement that one method is easier and less time-consuming than the other is.
Not sure which is the best solution for your needs? Don’t worry. We’ll share all the benefits of selecting an existing business so you can make an educated decision. By the time you finish reading, you’ll know what form of eCommerce works right for your particular needs. You’ll also have the information you need to get started with your new business right away. You could be making money far more quickly than you expected and nobody can discount that benefit.
Why An Online Business is the Appropriate Choice
Before we delve into the difference between buying a new and established business online, first we want to share some data on online business as a whole. As you may already know, most of the United States now spends a lot of their paychecks on online shopping. The Millennial generation now makes around 54% of their routine purchases online today. In the United States alone, eCommerce sales are expected to surpass $740 billion by 2023. There are tons of reasons for this, ranging from lower prices to better availability and the option to choose from nearly endless brands and services.
However, it isn’t only millennials who have taken the Internet by storm to buy all the things they need. Consider this fact: during the last Black Friday shopping extravaganza, about 5 billion dollars were spent online. It just goes to show that eCommerce is huge and people are interested in shopping online for necessities, gifts, and even one-off purchases that could be done in person. When it comes to a physical store vs. an online business, the answer to create proven success is clear.
So, let’s go a step further now and look at the many reasons to buy an online business that is already in operation. While you might think that sinking your teeth into a fully new operation is the better option, it can take a lot of work and countless hours to get things running. Many online business buyers appreciate how streamlined and simple it is to select an existing business instead.
Below we’re going to go in-depth into why you should choose this form of online business. We’ll share exactly what the benefits are and how they will propel you toward success much more quickly than starting a business from scratch. We’ll share out with the fact that an existing company is one that lets you gauge its success before you ever invest a cent.
Existing Businesses Offer Known Results
When you are trying to decide what kind of online business you want to own, there’s a lot of work that goes into it. It’s not something where you can just flip a coin and go with what pops up. You need to do market research and look at projections before you even begin to get started with the real planning for an online eCommerce business and website. While there are ways to make predictions about how an all-new online business will do, there’s no guarantee that things will work out the way you expected. The truth is that building your own online business has a lot of uncertainly when you compare it to buying a company that already operates online.
There’s a difference here when you choose to buy an online business that has already been making sales. When the online business has already been out in the eCommerce world for a while, you have access to real data that shows exactly what a company is capable of. The online business will have actual data showing its trends in eCommerce and how things are doing. You can look through the information to see if the demand for the product or service has stayed steady or had some bumps along the way.
Having fewer unknown factors is a plus for any kind of business. You have an idea right away if services or products are in demand. You can know whether the right market for the business has already been determined. Choosing to purchase a business rather than building it from the ground floor gives you more insight into what to expect in the future.
Time to Market is Much Quicker
In addition to having an online business with numbers behind it when you go with an existing company, you also have a quicker time to market. This is important since the sooner you buy and start operating your online business, the more quickly you can start bringing in revenue and finding your own success. This isn’t to say that there’s anything wrong with taking your time to gain a footing in eCommerce, but it is going to mean leaving money on the table for a longer period.
Even if you create your own online business yourself and opt-out of buying an eCommerce site that is already running, you might get lucky and do well with marketing so you start making cash immediately. However, the reality is that the longer an online business is in operation, the more money it’s going to bring in. There are several reasons for that, including:
- Advertisements – If you use them, it can take time to get clicks. Even when the clicks happen, they may not create as much money as you might hope. Buying an existing online business can create more money from the start. People know the brand and are more likely to interact with it.
- Sponsorships – It can take a lot of time to work up to getting good sponsorships for a new business. If this is something you plan to incorporate into your marketing, a new eCommerce site might not be the best way to get things going.
- Product Sales – If you’re selling items on your eCommerce website, people are more likely to buy if they know you are experienced and have been around for a while. New websites might have more trouble getting customers to purchase their offerings.
- Affiliates – This is another situation where a proven online business can do better at making money. To get people to click on affiliate links to make you money, they have to know you exist. That’s far easier if you buy a business that is already operating.
It doesn’t matter what niche you’re in, what you’re selling, or who your customers are, a business that has gone through the starting process is going to be better at creating growth and making sales. People know it exists and it has a prolonged presence that might make people feel more confident buying from it. That isn’t the case with a new website selling products or services.
An Opportunity to Use a Proven Business Model
One of the biggest motivations to buy an online business that is already running is because you get so much from it. When we say that, what we mean is that you already have a website that is ready to go, you likely have a slate of customers who know the business name and have positive thoughts about it, and you have the chance to utilize a business model that has been proven to work. If you’re looking to get into an eCommerce online business in a certain niche but aren’t sure where to start, a successful running operation can give you a head start.
When you choose an online business in a niche you’re interested in, it lets you quickly get started with something you’re already passionate about. This business is already up and running, which means it’s making a profit. It has suppliers, traffic, and customers due to someone else doing the hard beginning work to create the new eCommerce offering. That means you have less risk to worry about and a whole lot more potential reward.
Of course, this relies on choosing the right eCommerce website. You still need to do some work to make sure you’re purchasing the right online business. Do the vetting that is needed to see how traffic is, what the finances look like, and what the operation metrics look like. The best results are often found when choosing a business that has been around for a couple of years or more.
A Chance to Capitalize on a Ready Built Website
Another benefit you can enjoy when you buy an existing online business is a functional website. This is only one aspect of starting an eCommerce online business, but it should be something you consider. Unless you are already a website guru and don’t mind spending a significant amount of time building a site, having a pre-made site is a substantial benefit. Some people who purchase an online business will even find that the existing website design doesn’t need to be changed to start doing business.
However, even if the online business that you envision will require editing and tweaking the website, having a framework will save you time. The coding and information are already there so all you need to do is change the things that are a priority to you. Also, if the changes are wanted but don’t need to be done right away, you already have an eCommerce site that you can use as it is. You or a contractor can make the edits you need to show your style and personality without having to start from scratch.
Beyond the actual website, all other procedures and systems for the business are also in place when you make a purchase rather than starting a site on your own. This is a huge benefit since many entrepreneurs run into roadblocks while building and implementing the right processes and systems to ensure smooth operations. With established sites, these things are already in place and all you need to do is refine them to meet your needs.
The Ability to Rely on Proven Traffic
We’ve talked about how an existing online business has a proven business model and you already know what results in it has had in the past. One of the things that you can look at to be sure the eCommerce site will meet your needs is how much traffic the online business typically brings in. While looking at a variety of data bout the online business is recommended, traffic to a prospective online business website is one of the most important things to be aware of.
While you’re looking at the stats for the online business that you’re considering purchasing, make sure to view the bounce rates, page views, traffic numbers, content, and more. If the website owner has used Google Analytics in the past, this is simple for you to do. All they need to do is add your email as view-only to their eCommerce analytics account. If you notice huge traffic spikes that have massive drop-offs, that could be a concern. Make sure you dig through the data for the online business to be sure it’s the right option for you.
How Website Properties Can Help You Excel
Website Properties has been helping entrepreneurs just like you buy the best eCommerce businesses for more than 20 years now. With hundreds of sellers offering an online business that might fit your needs, we’re happy to help you get through the process so you can start making money. We focus on eCommerce businesses that have the online business valuation you want to ensure your success.
Each entrepreneur who comes to use will get customized representation so the needed time and resources are available helping you choose the right online business. You can visit our website to see a variety of online businesses and websites for sale, ranging from Amazon FBA, traditional eCommerce sites, and SaaS websites. You can also sign up for our Premium Buyer Alerts to have new listings sent straight to your email!