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Fabien Shopify Employee exchange.shopify.com
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5
Last edited 3 months ago

Announcing Exchange - Shopify’s marketplace to buy ecommerce websites

Today we are launching Exchange, the marketplace to buy ecommerce websites. There are hundreds of businesses on Exchange: from established business for sale with high monthly revenue to starter stores you can buy for as low as $200.

 We are super excited to share Exchange with you as it provides a great experience:

- Revenue and traffic data come straight from Shopify and can not be edited by the seller. When you decide to reach out to a seller, you know the data is as advertised on the listing.

 - Communication with sellers is anonymous and secure. Getting in touch with the seller is as simple as sending an email.

 - For sellers, we made the experience of creating a listing extremely easy. All you have to do is install the Exchange app on your store. We will automatically create screenshots of your store for you and suggest a selling price based on your revenue and traffic.

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Replies
BrianM Member
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3 months ago
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Brilliant concept - congrats on the launch! Having purchased several sites on other marketplaces, I am all for transparency of data. Thumbs up!

rito Shopify Partner apps.shopify.com/trust
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229
Last edited 3 months ago
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1
upvotes

Awesome. Great to have another avenue to get into the ecommerce game. Prices look to be resonable, and really digging the no fee aspect of it. Nice job Shopify!

Cheers,

Ryoma

——————————————————————————————————————————————

Free Trust Seals with Reviews Generation - https://apps.shopify.com/trust

Free Ads Exchange - https://apps.shopify.com/ads

Free Conversion Checkout Timer - https://apps.shopify.com/conversion

Contact: rito(a)varinode.com | Improve your conversions by incorporating free trust seals - https://apps.shopify.com/trust
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3 months ago
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upvotes

Great idea. I'm having a look now. Keep up the good work

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Last edited 3 months ago
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I'm stuggling to understand why anyone would sell a website they've worked hard on for as low as $200, or even $2000 or even $20, 000.  In my view $200 doesn't even cover the admin of one day uploading products. $20,000 doesn't cover my blood, sweat, tears, risk and passion. Is this devaluing the art of the passionate enrepreneur? Guys, am I missing the point here?

Ali

https://www.age-of-reason-studios.com/

Posts:
1
3 months ago

Any website is only worth as much as people are willing to pay for it. If people list their website for $200USD it's probably a sign for a) low current sales / profits b) low potential for future sales / profits. An Ecommerce website is usually measured in multiples of “monthly net profit”. As a rule of thumb you can say: 20-30x. In other words, any website selling for $200USD is most likely not making a any profit at all. The same math applies to websites selling for 20k, 200k, etc. 

Posts:
41
3 months ago

Hey I just found this concept yesterday and yet listed one of my store :)

https://exchange.shopify.com/shops/dragonballzstuff-com

Can discuss on the price...

Posts:
4
3 months ago

Hi Fabien,  very interesting indeed.  It would be really helpful is there was a way to search for:  country where the business is headquartered, a revenue range, a profitability range, years in business etc.   Also in trying to understand shop valuations, it would be great to have a high level summary of shops that have been sold.  Perhaps not the specific details, but like:   "a shop in this industry sector, with Y revenue, and profitability was sold for X dollars.   I think existing shop owners would be interested in metrics that would help them determine the valuation of their shop.   Great start though, will be watching closely, cheers Jerry.

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3 months ago

Good post, I agree. I think many people only value a site based on ridiculous metrics such as the traffic and SEO rankings like on SEO Moz.  I question the accuracy of these tools and their ranking systems.  The best is the site pricing tools that give you the value of the site. One of the sites I have (which I have been trying to sell for years) makes thousands of dollars a month in high profit income. At one time it was selling digital goods and making $10,000 plus a month and I could not sell the business to save my life. (see photo)  A large part of the problem is that many people look at these pricing and traffic tools as gospel and they think they know what their talking about.  I had one guy just recently on eBay tell me that a site with 500 original articles and a six-year-old domain that makes automated revenue was not worth $300.  This idiot started rattling off stats from SEO MOZ and telling me that the site has no value even though it earned $700 this month.  Situations such as this reflect the problem of people not understanding the limitations of SEO and traffic tools and also not understanding the traffic and backlinks are only valuable if they are converting.

In all fairness, the other part of the problem is the fact that many businesses, like the one I am selling, are highly specialized or involve having skills in order to run them. One of my customers recently had me build him a pool cue dropship which is cool business and he already has clients such as bars and pool halls. This is a specialized market because you really have to have an understanding of cue sticks and their quality in order to sell to these customers.  So I believe that some businesses are undervalued because they are too specialized, and the average person may not understand or see the value in it.

There is another factor that I think needs to be considered despite the fact that most people are not willing to admit it.  Sadly, a lot of people who are looking to purchase a turnkey business are doing it for the wrong reasons. I don’t care what business you buy, you are going to have to put effort and time into that business or it will not work.  Even the automated business I am selling for $300- you still need to work on the social media and get it out there through some form of advertising even if it is just talking on Reddit or it will not stay relevant in search.  A lot of people have the false belief that they are going to buy a website and it will just start churning money. The ridiculousness in this thinking is evident in the fact that these people would even think that they could purchase a profitable money-making business for a couple of hundred dollars. 

Great discussion thanks. 

Screen shot 2017 06 27 at 10.42.04 am thumb
Vincent Triola
Fabien Shopify Employee exchange.shopify.com
Posts:
5
3 months ago

These are great ideas Jerry! We are already working on a better navigation experience but the idea of explaining store valuation is awesome

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Last edited 3 months ago

Suggested valuation seems way off when I installed the Exchange app.  It used a multiple of 4X.  Typically 20X - 30X is the norm.  Unless Im missing something here...  ROI would be 4 months lol.  Not accounting for growth.

 

Edit:  Can I get a response from Shopify??

Posts:
4
3 months ago

Fabien, I would like to suggest you checkout, www.sunbeltcanada.com, they are a buy/sell business broker located in Ottawa.  Perhaps Shopify could collaborate with them in some way.  With respect to search criteria for finding a potential business to purchase here is their link to their search engine: http://sunbeltcanada.com/businesses-for-sale/

Also for those interested in purchasing a shopify store perhaps this would be helpful reading:  http://sunbeltcanada.com/businesses-for-sale/choose-the-right-business-for-you/

Here is my shameless plug - If anyone is looking for corporate or sports awards, trophies, medals, etc, check out www.questawards.com  - I just could not resist :)

15bbrewster Member
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Last edited 3 months ago
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Hey, Just out of curiosity Brian M what other sites have you used?

Nunzio Presta Member
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2
3 months ago

We sent a letter about 6 months ago to the Shopify crew suggesting collaboration in order to help Shopify businesses looking to sell, looks like they went ahead with it!

To add to Brian M's comment and 15bbrewster's question, I would like to suggest you checkout mybizon.com, it’s an online marketplace where people can buy, sell and grow independently owned businesses and franchises (Brick and mortar/eCommerce/Apps).

Shopify the collaboration offer is still on the table! The goal is help people buy and sell as effectively and efficiently as possible.

- NP

Bizon 2.0 twitter thumb
Kraken42 Member
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257
3 months ago
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Robert, 20 to 30x valuations haven't existed since the late 90's. 3 to 4 times is the reality these days,

Nunzio Presta Member
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3 months ago

Agree.

Lauren Member
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1
3 months ago

Fabien, 

I love the Exchange platform. I have one of my stores ready to publish the listing but am wondering why Shopify is showing 12 month "Revenue" that is only about 40% of the store's reported sales???

Are you trying to estimate profit?  If so, "Revenue" is NOT the right term since it is defined as the top line sales on any financial statement.  

Thanks for helping me understand

Lauren   

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5
3 months ago

Wow, so ROI on all these business are just a couple months.  What a bargain!

Posts:
3
3 months ago

Looking through the listings and there's one like this:

https://exchange.shopify.com/shops/shreebdsa

Sort of absurd, yeah?

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2 months ago

I think it's a great idea. There are some people that may have a site and may have many reasons for wanting to sell. It may be that they are great at designing one but may lack the marketing, time, or personal issues may have interfered in the early stages of the project. This would enable someone without any knowledge of how to build a site and have a low budget, to jump right into an already completed site.

Your Fashions For Less https://yourfashionsforless.com Theresa L. Hayward
Posts:
1
2 months ago

Hi all I developed A system (siteboost) to claim the ecommerce market and help providing a business structure when beginning a webshop which is efficient, multinational based and order retail and sales as specific as it possibly can get. Next to this every template which can be connected is bootstrapped and the customers which buy on your website will be analyzed and the interest of these customers calculated so you can direct market and provide special offers according the interest of the webshop visitors.

You have to check it out www.siteboost.eu. www.smartboost.eu is one of the webshops which is running on this program

If you have any question or want to connect the system to your website, shop or application please let me know. My emailaddress is reggie@siteboost.eu and my phonenumber +31626301855.


 

Siteboost logo thumb
Posts:
3
about 1 month ago

Thought I posted a comment but I don't see it. 

 

Is there a way to get the app to reanalyze the store? I had edited the price but now decided to go with Shopify's suggested price but do not remember what it was. I tried removing the app and reinstalling, but it defaulted back to the same info I had edited in.