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How to Value an Online Business: Shopify vs Amazon FBA

Two online businesses. Both generating $10,000 a month in profit. Both listed in the same quarter. \n\n One sold for $240,000. The other sold for $380,000. \n\n The difference wasn’t luck. It wasn’t even the products—they were in similar niches. The difference was the model. One was a Shopify store dependent on an app ecosystem and marketing funnels. The other was an Amazon FBA business with entrenched rankings and a loyal brand following. \n\n If you’re asking “How do I value my online business?”, the answer depends entirely on where your business lives. A Shopify store is valued on different … Read more

Shopify Store Valuation: 12 Factors That Move Your Number

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Two Shopify stores. Both showing $150,000 in annual profit. Both in the home goods niche. Both listed for sale within the same month. One sold for $375,000. The other sold for $525,000. Same profit. Same niche. Same marketplace. The difference? Profit quality. One store’s $150,000 was high-quality—predictable, recurring, and well-documented. The other’s was fragile—concentrated, seasonal, and propped up by one-time promotions. This is the 12-factor framework that separates the two. The 12-Factor Framework After analyzing hundreds of Shopify store sales, we’ve identified 12 factors that consistently move valuation multiples. They fall into three categories: Financial Factors (5): These determine the … Read more

How Customer Lifetime Value Changes Your Multiple

Featured, Hot, New, Valuation

Two stores in the same niche. Both doing $15,000 a month in profit. Both listed within weeks of each other. One sold for 2.3x. The other sold for 3.1x. The difference wasn’t revenue. It wasn’t growth rate. It wasn’t even traffic diversity—both had similar channel mixes. The difference was LTV. One store’s customers bought once and never came back. The other’s customers bought four times a year for two years. Here’s what that means for your valuation. The Quick Answer Your Shopify store’s worth isn’t a single number—it’s a range. Most established stores sell for 2.5x to 3.5x annual SDE … Read more