So the usual formula for selling an e-commerce business is typically three times your annual profit. Sometimes people do it based on the last month, but because they’re a bit seasonal, a year’s profit is a pretty good measure of how successful that business should be in the future. And a lot of buyers out there are willing to pay say three times your last year’s profit.
So if you’ve got a business on Amazon selling a million dollars worth a year, that’s like 80 something thousand in sales a month, that’s not that hard with a bunch of good products. Profit for there might be 300,000. And then you sell it for a million dollars lump sum. So pretty neat over 18 months, you can build and sell one of those potentially.
