Buying an E-Commerce Business in the UK

Never accept screenshots. Insist on temporary read-only access to Google Analytics, Search Console and the platform back-end (Shopify, Amazon Seller Central). Look at the last 24 months of sessions, revenue per visitor and channel mix.

• Organic traffic trend: is it growing, flat, or in structural decline
• Paid traffic dependency: businesses 80%+ reliant on Meta or Google Ads carry execution risk
• Branded vs non-branded search split
• Returning customer rate (a healthy DTC brand is 25 to 40%)

Confirm supplier contracts transfer on sale. Check exclusivity terms, minimum order quantities, payment terms and any reliance on a single overseas factory. Speak to at least one supplier directly during diligence with the seller's consent.

Amazon FBA businesses can be suspended overnight. Shopify stores can lose payment processing. Quantify the risk: what is the recovery plan if the main channel disappears for 30 days? Businesses with diversified channels and a strong email list price higher for good reason.

Sellers often present add-backs that inflate true earnings. Reverse-engineer the figures yourself:

• Add back genuine one-off costs only (not recurring marketing spend)
• Charge a market salary for the owner's role
• Verify return rates against bank statements
• Confirm advertising spend reconciles to platform invoices
• Check inventory at cost is genuinely included in the sale price