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The Pros and Cons of Selling an E-Commerce Brand

Selling your brand is a major opportunity that any seller should consider at least once. Nothing makes a true entrepreneur happier than making a lot of money at one time; but as we know, not everything is as perfect as people hope. There are major success stories from E-Commerce sellers being able to sell their brand for millions who lived happily ever after. Vice Versa, there are stories where sellers did not get what their company was truly worth and struggled to create a second brand as successful as their first.

Pro: Money

The first, and the most obvious perk of selling your brand–a quick, large amount of money. Every entrepreneur dreams of creating that one brand that makes them millions and ready to retire. It can be a common misconception that brand acquisitions do no occur often in the e-commerce world, but the market is the fastest growing in the world. Seen in the chart below, E-Commerce sales will only continue to grow. Businesses are ready to invest in the future and, in turn, your company. Selling your brand can be a great way to “get rich quick”, but discontinues a steady stream of income.

Con: Selling off a steady stream of revenue

If you are a seller with only one brand, then be cautious and consider your options before risking your comfortability. This con can be very situational from person to person, but every seller will experience the same thing: a decrease in steady cash flow. With every success story, there are two more failures. Before you consider selling your brand ask yourself these questions: Is this my only source of income? Do I have enough money to be able to reinvest and live comfortably? What is my plan for next year? the next 5 years? We all know that the economy has its rises and falls. In the Summer of 2019, the U.S. will have the longest expansionary period in its history; however, this means that a recession could be in the near future.

Pro: Opportunity

A successful entrepreneur is made by taking the chances when they are presented to them. Selling your brand is a special opportunity that not many can say they have had the chance to do. In my view, there are two opposite ends of the spectrum: an exit door and an entrance. The entrance is a chance for sellers to be able to use that money and enter a new market or potential stream of revenue. On the other hand, the exit door is a chance for an entrepreneur to exit at an appropriate time and leave the e-commerce market as a whole–enjoying a life without the constant need to nurture an online brand. Whether it is continuing the constant competition in the business world or relaxing on a private beach, selling your brand is a massive opportunity that every seller should aim to consider.

Con: Starting Over

Most entrepreneurs will not be happy to take their payday and settle down. The true value in selling your brand is the opportunity to start something new. Well, if you don’t quite remember what that it is like, it is a lot of work. Building a brand takes constant nurturing as if it was your child. Building your inventory or creating a new service takes days of research and dead ends. Obtaining returning customers is like having to constantly bottle feed your Amazon and Google Rankings. Starting over is always the hardest part, but something that everyone goes through and is an excellent time to learn and become a better entrepreneur.

Pro: Reinvesting

Selling a brand is not a dead end but a new beginning. The big question is not “when am I going to sell” but its “what will I do next”. Sitting on a pile of money can only get smaller, reinvest your money and try to triple it. Whether you decide to create a new e-commerce brand or you are burnt out and want something new, an opportunity arises that only happens a limited amount of times in one’s lifetime. Selling one’s brand gives entrepreneurs the cash to see a gap in the market and create a strong brand right away. Sellers will not only have the opportunity to create a brand but the ability to create multiple brands to one day sell. We at Seller Accountant can’t tell you what to sell or do next, but we can help you make more money through experienced CFO services and expert financial planning. If you are interested in selling your brand, contact us for a free consultation so we can help you create a game plan for future success.

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