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Buying an existing drop shipping business website
what kind of questions should be asked
stinky

10+ Year Member



 
Msg#: 3877881 posted 8:11 pm on Mar 24, 2009 (gmt 0)

My web designer told me of a client of his who wants to sell a web site that sells products that are drop shipped.
The current own took the website off line because he could not handle all the business and wants to sell his site for what ever offer that comes to him because he just doesnít have the time.

When I spoke to my web designer he told me that the persons website brought in over $100K in sales some months. He knows this since he designed the site and has access to all the data. I do not know what profit the site made from total sales figures.

When I asked my web designer why he doesnít buy it since the person will take any offer just to get rid of site, he said he just doesnít have the time.
What I donít understand is if itís a drop shipping business there is not much to do because you donít have to stock or mail the product. So how could it be so time consuming to manage.

Does anybody have experience with drop shipping sites have any info I should ask the current owner? Is it hard to make money with drop shipping sites because people selling same product from drop shipper are trying to under cut each other?

Thanks, Any info is appreciated.

 

LizaJane

5+ Year Member



 
Msg#: 3877881 posted 8:45 pm on Mar 24, 2009 (gmt 0)

Yes, one can make money from a drop ship site. Many variables to consider.

Some questions I would ask :
What exactly is included in the website
The domain name?
the actual website pages
the website support software
the contact data bsse of vendors
the contact database past costomers
a non compete clause
Outstanding debt?

>took the website off line
Never a good sign. Loss of search engine placement as well as repeat customers. Think .... how much is a business worth once it is closed. Blue sky deminishes

>over $100K in sales some months ....I do not know what profit the site

Due diligence will give you these figures. If you are serious about purchasing the business, you will want to see profit/loss statements as well as tax returns.

Web site statistics - does it support the plausibility of the sales figures stated

List of current suppliers - contact them to be sure you can continue to sell their good and with the same / better terms.

Many more things to consider when purchasing any business

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